Oceanside Mortgage take Broker-to-Banker Transition in Stride with DMD Solutions
High volume FHA lender delivers 1003 in 15 minutes or less, reduces errors with DataTrac Originator, increases warehouse turn times with DataTrac EDM
Company
Founded in 1996, Forked River, N.J.-based Oceanside Mortgage is one of the nation's premier FHA mortgage bankers, having closed more FHA refinances than any other lender in the state.
Challenge
As a result of its transition from broker to banker, Oceanside (www.oceansidemortgage.com) experienced an increase in loan volume at the end of 2006. The company realized that its legacy point of sale and back-end technologies, which wasted time and created too many opportunities for errors, needed to be updated. Oceanside’s founders began searching for an integrated, end-to-end mortgage lending solution.
Solution
In 2007, Oceanside discontinued the use of its legacy system and chose DMD’s DataTrac mortgage lending workflow automation tool as its back-office hub. Simultaneously, the company implemented DataTrac Origninator, and DataTrac EDM, DMD’s point of sale and electronic document management solutions.
Results
Upon implementing DataTrac Origninator, Oceanside experienced tremendous front-end productivity gains. DataTrac Origninator’s electronic point of sale capabilities, allowed originators to eliminate paper 1003s, greatly improving Oceanside’s responsiveness to applicant borrowers by enabling originators to send electronic 1003s within minutes of a borrower’s request. Further, after borrowers return their 1003s, the openers assigned to the file no longer waste time re-keying information.
According to Steven Stone, vice president of secondary for Oceanside, his company saves more than an hour and a half per loan file with its new system.
“Before using DataTrac Origninator, we wasted time as different people entered and reentered information on paper loan applications,” said Stone. “It became apparent that data entry was hampering our progress, especially since we were experiencing an even greater demand for our services as a mortgage banker. DataTrac Origninator enabled originators and openers to avoid the data entry process altogether, allowing us to get applications to borrowers in 15 minutes or less. While many lenders still take hours to process and send 1003s, we do everything immediately.”
Eliminating data entry with DataTrac Origninator also saves Oceanside enormous amounts of time by eliminating 1003 errors – especially on FHA loans – helping the mortgage banker maintain its status as one of the premier FHA lenders in the country.
“As an FHA loan specialist, ensuring data integrity is a huge priority for Oceanside. DataTrac Origninator helped us by removing errors from the 1003 process,” said Stone. “Transposed social security numbers (SSN) were quite common before putting the system in place, since paper applications required data to be entered and reentered by different people. Every time we submitted an application with the wrong SSN, it would take an extra 24 hours to re-validate everything in the FHA system. Fortunately, with DataTrac Origninator, this is no longer a concern for us.”
Oceanside gained additional efficiencies from its implementations of DataTrac, DataTrac Origninator and DataTrac EDM. The seamless integration of the three systems enabled Oceanside to become a completely paperless lender.
With this system in place, Oceanside no longer has to ship paper loan documents to investors. According to Stone, this not only has saved his institution time and money, but also enabled it to turn its warehouse lines more frequently.
“Without the hassle of managing physical documents, we save thousands of dollars every month on shipping loan files to investors. Further, by eliminating shipping time from the equation, we are able to flip our warehouse lines at a much greater frequency than before. In fact, in February 2009, we flipped our lines two and a half times even though we closed more than 300 loans,” said Stone.
“DMD’s technology has really enabled us to maximize efficiency. The time and cost savings provided by their systems lets us concentrate on making quality loans, with the confidence that our profitability is not compromised.”
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