R E T A I L   F I N A N C I A L   S E R V I C E S

Mortgage Banking

Business Intelligence and MIS Solution

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Outline

Introduction - Who we are

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Introduction – Who we are

Orbit Systems is a Columbus, OH based Business Intelligence

company

Business domain expertise in Financial Services, Healthcare and

Retail

Dedicated practice with trained & certified BI professionals

including Data Warehouse architects, ETL/Report developers &

SME

Strategic partnerships – IBM, Oracle, Informatica

Cater to Fortune 500 clients

Our recent experience of successful business intelligence

implementation at Chase Home Finance gives us a strong foothold in the

MBBI domain. We have the domain knowledge as well as the technical

expertise to make it happen. We know the reporting needs of a

Mortgage company, what is needed by their management to make

business decisions in this fast changing environment.

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Introduction – What we do

We implement custom tailored Business Intelligence solution

Not just technical solution. We bring business knowledge

We implement BI solution that bridges the gap between

management and daily operations & provides single point of

access for reporting

A solution for everyone in the organization (Right tools for the right

user):

Executives - Our analytics helps business decision-makers analyze reliable,

timely information on day to day business activities

Power Users - Analysts focus on analysis not on data gathering.

Operations

We build Workflow management tools to:

Drive operational efficiencies

Save cost by additional visibility on expense

Accelerated time-to-results with Orbit’s domain knowledge of

the mortgage industry combined with technical expertise

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Introduction – How do we do IT

Custom tailored solution catered to client needs

1. GAP Analysis => Recommend Solution => Phased

implementation

2. Get down to business => Iterative Approach (Spiral)

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Introduction – Approach

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Mortgage Banking

People are feeling the pain

Rates are all time low

Higher focus of cost savings

Changing business landscape => drives better understand the business

Focus on “Do more with less”; Higher productivity and efficiency

Government initiatives & regulations & audit scrutiny

Mergers and acquisitions

Bankruptcy and fear in the environment

Risk : Credit risk : consumer and bank

Mortgage and servicing valuation

Loss Reserves calculations,

Capacity Models – Staffing (ABC models)

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Mortgage Banking

Loss Mitigation and mortgage modification

MHA – Making house affordable,

TMQ - Trial Modification Qualifier

Collections (inbound and outbound) tracking

Call Center metrics

mortgage companies have data scattered—in different forms and

systems

The combination of compliance requirements, a competitive business

environment, the sub-prime credit crunch and the need for stronger management

will drive retail banks' investment in business intelligence software.

Furthermore, ever-increasing regulatory pressures on financial services companies

make it all the more important for banks to have risk management, fraud

prevention, and anti-money laundering systems in place.

The need for comprehensive Business Intelligence in Mortgage industry is now

needed more than ever. The dynamic nature of mortgage business requires timely

access to accurate information which is consistent throughout the organization.

Interest rate changes: Affects call volume, payoffs and loan originations.

Federal Initiatives: Affects on mortgage modifications, and delinquent loans.

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Business Intelligence

Drive Business Performance

Higher Business value

Cost savings / analysis

36 percent of managers state that they have the right information available to

them to run their business

without the right analysis, reporting tools and simplified access

integrates the mortgage company’s own data and provides a unified business

intelligence

Provide data collection mechanisms

standardized reports that deliver insight

Visibility into business operations

bridges gaps between management and operational

Multi-tiered reporting in one solution

Data integrity and consistency of reports and metrics

Focus on BI Architecture , not data warehouse (technical) architecture

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Business Intelligence - MIS

Better risk analysis based on:

LTV geographic location

Property Valuations

Credit Ratings

Performance based incentive

Loan Analysis by Channel – Broker vs. Self

Gain insights quickly—View your key business drivers from a single source through

the Cognos ReportNet dashboard.

it tracks and monitors operational risk, and provides a more sophisticated and

consolidated picture of risk exposure across all LOBs

To secure the reports they need, these managers often

have to work extensively with their IT departments, sacrificing

both time and opportunity.

• Interest rate movements.

• Pipeline volumes.

• Processing efficiency.

• Performance by region and broker.

• Customer satisfaction.

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Success Stories - Challenge

Numerous data silos throughout business areas

Data scattered in multiple forms – MS Access, excel, emails.

Data consistency (or lack thereof) – Everyone had different number to report,

human error

Low Customer Satisfaction due to lack of accountability

Lower customer loyalty due to lack of data access in customer relations group

Higher customer escalated complaints

Low self service channel utilization (e.g. IVR, Web)

Higher workforce attrition resulting in lower productivity and efficiency

Access to consistent information for rating agencies and PMSR valuations

Unmanageable T & E expenses

No financial oversight on the staffing process

No financial accountability on operational manager

Misalignment / distributed BI environment

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Success Stories - Challenge

Lack of intelligence on customer contacts

Lack of analytics on collector / banker / call center behavior

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Success Stories - Solution

Facilitated merger activity

Consistent reporting for call centers across

Drove accurate headcount forecasting by Product and Channel

Visibility into staffing process resulting in lower headcount expense

Reduced repeat caller volume

Provided mechanism to allocate expenses across business units based on drivers

Drive better data capture via business process improvements

Created workflow management systems (CSTS, ERT, ERG)

Web based report delivery system

Report usage tracking –

ALL YOUR REPORTS: ONE INTERFACE

support financial analysis, customer intelligence systems and more formalized

performance and risk management, have all collectively become an important

organizational imperative.

This has resulted in a focus on establishing efficient sales channels, improving the

quality of customer service and maintaining high levels of customer retention. A

front-office focus means that distribution channels and customer relationships -

cross/up-selling and the ability to search for new potential growth segments - are

becoming increasingly critical to a bank's success. This requires an improved and

more complete understanding of the consumers of banking services, and the

ability to act on that information.

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Success Stories - Solution

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Mortgage BI - Implementation

Consolidation of data into single repository

Data cleansing

data integration, metadata management, and data store infrastructure will be vital

to create this comprehensive view

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BI Architecture

Mortgage BankingData Warehouse

OLAP Cubes AnalyticalReports

StandardizedReports

Ad hocReports

IVR Call Quality

Workforce MgmtCMS

Call Center

CustomerSatisfaction

Customer Metrics

CRM

Cards

Auto

Other LOB

WorkflowMgmt

Business Apps

ForecastingPlanning

Financial EDW

Enterprise Applications

HRMS Accounting

Other Sources

ExternalVendors

ManualFeeds

DownstreamSystems

Servicing

Default

REO / Losses

Collections

Originations

Portfolio

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BI Architecture

Mortgage BankingData Warehouse

PerformanceMart

MARKETING

- Cross Sell Opportunities- Marketing Campaigns

- Churn Analysis- Zone Analysis- Segmentation

CREDIT RISK

- Cross LOB Risk Analysis- Early Warning Indicators

- Consumer Credit Risk Analysis

FinanceMart

Call CenterMart

CustomerMart

ProductMart

PRODUCT MGMT

- Product Profitability- Portfolio Analysis- Channel Reporting

CREDIT RISK

- Cross LOB Risk Analysis- Product Risk Analysis

EXECUTIVE

- Dashboards- KPI Analysis

- Business Reviews- Rating Agencies

OPERATIONS

- Scorecards- Performance Trending

- Initiatives

FINANCIAL ANALYSIS

- Actual / Forecast Analysis- Headcount Reporting- Workforce Planning

- P & L Statements- Balance Sheet

- Planning Initiatives

OPERATIONS

- Call Analytics- Customer Satisfaction- Workforce Scheduling

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Cross Sectional Analytics : Customer / Product Affinity, Cross LOB Analysis, Operation / Finance Analysis, Co relational Analytics

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BI Solution – Analytical Reporting

OLAP Cubes

Call Center Metrics

Portfolio Tracking

Financial (P&L and Balance Sheet)

Headcount

Default Portfolio Tracking

Bankruptcy & Foreclosure

Collections

Loss Mitigation / Losses – Payment to Vendors

Business View for Power Users

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BI Solution – Operational Reporting

Daily Delinquency Trends

Pipeline reports by products

Daily Waterfall

Volume and UPB trends by lien an LTV

Daily Potential Delinquency Reports (POTS)

Daily REO aging report

Good Bank / Bad Bank Reporting

Escrow Administration

Hazard insurance reporting

Performance Reviews (PMAC Scores)

Portfolio Trends (Different Portfolio, Loan Type cuts)

Delinquency (Outstanding, 1-29, 30+ buckets)

Roll Rates (30-59, 60-89, etc…)

Loss Analysis - Loss Composition, Writedowns, Loss Severity, Short Sale / Settlements

Inventories – Foreclosures, Bankruptcy, REO

Loss Mitigation – Modifications, Forbearance, Reinstated, Deed in Lieu, Short Payoff

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BI Solution – Analytical Reporting

Non-performing assets as a percentage of receivables

Net charge-offs as a percentage of average receivables

Reserves as a percentage of receivables

Provisions and net charge-offs

Aging of advances

Financial quantification of default pipeline

Reserve level analysis based on historical loss data and comparisons to risk pipeline

Occupancy status

Fraud Prevention – Check verification, dormant accounts,

Cross Sell management, incentives, tracking, compensation

Owned vs. non-owned portfolio analysis

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BI Solution –Executive Reporting

Business Reviews

Site Scorecards,

Historical Trends, comparisons

MBA & Rating Agency Reviews

JDPower Metrics

Product Profitability

Real Time Unified Dashboard

Attrition Reporting

P & E and KPI

Merger / Integration

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Introduction – Approach

Phase1:KickoffWorkshop:Theworkshopwillinitiatetheengagement.Theonedaywork-shopwillinvolveahighlevelunderstandingoftheclient’sstrategy,expectations,validationoftheagendaandappointmentoftheclient’scontacts(projectparticipants)forinterviews.

Phase2:StudyandResearch:InphasetwoPolariswillperformacomprehensiveinventoryassessmentstudy,understandtheclient’sbusinessplans,productgapsandtechnologyrequirementscross10days.

Phase3:AnalysisandBlueprintDevelopment:InphasethreePolariswillanalyzetheinformationgatheredtocomeupwithrecommendationsfortheclient,theoverallblue-printforthedeploymentoftheproduct,effortforthegapsandprioritization(4days–overlapwithPhase2)

Phase4:FinalPresentation:ThePolaristeamwillpresentitsanalysisandfindingsanddiscussthesamewiththeclientandincorporatetheirfeedback.Thiswillbeatwoworkingdaypr

ocess.