Kroll Factual Data Helps
Put First Tech Credit
Union Back in the Lead
Case Study: Loan Processing
Challenge
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n the latter half of 2010, First Tech Credit Union (FTCU),
based in the Pacific Northwest, benefited from a healthy local
business climate. Many of its Oregon members are employed
in the technology industry and were well-positioned financially
to take advantage of historically low mortgage rates. As a result,
FTCU experienced an increase in business as its members looked to
refinance existing mortgages, move up the property ladder, or invest
in their first home.
Although the surge in mortgage applications was
with excess capacity and increased overhead. “The
welcome, it created a challenge for this growing
challenge of dealing with fluctuating volume happens
financial institution. FTCU’s VP of Mortgage Lending,
to everyone, and the tendency is to get into a cycle of
Liz Stewart, said the organization’s goal was to offer
hire-and-fire in response,” said Ms. Stewart. “Some
a 30-day rate lock to home loan applicants. However,
don’t mind that, but we do.”
due to the surge in applications, turnaround time for
Ms. Stewart also notes other challenges that arise
FTCU members had grown to nearly 90 days.
when loan volumes peak: there is competition for the
Hiring and training new loan processors to help
available loan-processing talent, so organizations bid
respond to the increased demand was not FTCU’s
up pay rates to bring on help, and each temporary
preferred approach, nor was expanding their existing
hire requires training time. “Meanwhile, we’re falling
temporary workforce. FTCU foresaw that rates would
further and further behind our efforts to meet the
eventually rise, and loan volume wane, leaving FTCU
needs of our members,” she said.
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Solution
When Ms. Stewart sat down with her Kroll Factual Data representative in
August 2010 to discuss the health of their mortgage lending department,
it was clear that a path to get FTCU back to delivering to its members on
the promise of a 30-day lock was immediately necessary. The solution:
Kroll Factual Data’s Loan Processing Services.
A growing number of financial institutions have
One thing that made this solution even more obvious,
turned to Kroll Factual Data for loan processing
and easy, was the fact that FTCU uses Prime Alliance’s
services as rates creep up, volume lags and they seek
Loan Fulfillment Center, and Kroll Factual Data is a
new approaches to respond to market conditions. This
Prime Alliance preferred partner. This relationship
alternative provides an option to improve operational
enables streamlined lending while making use of
efficiencies in response to
changing market conditions.
“We met with Kroll Factual
Data on a weekly basis, which
was very important and
gave us an open channel of
communication to discuss any
concerns and quickly figure out
a solution,” Ms. Stewart said.
That approach led to a detailed
process map, validated by Ms.
Stewart’s team, on how FTCU
wants its loans processed.
the most current, accurate data
“We met with Kroll
Factual Data on a weekly
basis, which was very
important and gave
us an open channel
of communication to
discuss any concerns
and quickly figure out a
solution.”
available.
“It was important that Kroll
Factual Data could process
directly into our system, and
that there was no required
minimum number of loans for
us,” Ms. Stewart said. “There was
a learning curve there, too, and it
took a bit of time to develop the
process, but they could meet our
capacity needs pretty quickly.”
“Ultimately, we have a much
“The next time we need Kroll
smoother process that’s scalable
Factual Data to process a loan, even if it’s several
and is going to work for us on an ongoing basis,”
months down the line, we’ve carefully documented
she notes. FTCU anticipates that some months their
how to work with us,” Ms. Stewart said.
internal team will handle all the loan processing, but
The flexibility provided by Kroll Factual Data gives
Ms. Stewart monitors her staffing model and historical
mortgage lenders like FTCU the ability to handle
data to predict what months she’ll need external
fluctuating loan volume, while at the same time
support. “I know that I can get through those months
reducing costs and risk. This allows FTCU and other
when we need additional help, with minimal impact
Kroll Factual Data loan processing customers to use
to members, minimal impact to us, and without
– and pay for – only the amount of loan processing
having to hire anyone.”
support they need.
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Result
Kroll Factual Data customized a solution to meet FTCU’s unique needs,
assigning a team of experienced, licensed loan processing professionals
who work in parallel with FTCU’s in-house process.
“Kroll Factual Data was able to meet FTCU’s
needs by providing a variable cost, rather than a
fixed cost, service that is tightly integrated with
their existing loan processing procedures, and
tied to the number of loans processed,” said Kroll
Factual Data Senior Vice President Bob Arrington.
About Kroll Factual Data
Kroll Factual Data is a leading provider of independent
verification services to mortgage lenders, banks,
credit unions, property management firms and other
businesses. For more than 25 years, Kroll Factual Data
has helped business make prompt, accurate decisions
Within a month of the meeting, FTCU sent 75 loan
files to Kroll Factual Data for processing. Over the
by combining innovative services with cutting-
next three-and-a-half months, Kroll Factual Data’s
edge technology and industry-leading customer
trained loan processors were able to cut FTCU’s near-
service. Kroll Factual Data is a subsidiary of Kroll, the
90-day turnaround time by two-thirds. In subsequent
world’s leading risk consulting company. For more
months, Kroll Factual Data’s processing team handled
information, visit
well over 100 loans a month for FTCU, helping FTCU
www.krollfactualdata.com
get back to their goal of offering members a 30-day
lock.
Ms. Stewart and FTCU are extremely pleased with
the outcome. “Any challenges are minimized by
communication, which Kroll Factual Data’s team
provides,” she said. “They did a lot of work to create a
process that matches exactly what we need, they have
a very responsive team, and we love what they do for
us.”
As interest rates continue to cycle, and loan
applications from FTCU members wax and wane,
Ms. Stewart and her organization know that the
Kroll Factual Data loan processing team can handle
as many or as few loan files as needed, quickly and
reliably.
For more information on Kroll Factual Data’s Loan
Processing Services, visit:
http://www.krollfactualdata.com/loan-processing
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