Data quality, transparency, and completeness are key to strengthening balance sheets and improving servicing competitiveness.
While the mortgage crisis of 2007 is behind us, the needs for transparency and data completeness have not gone away. Whether you are focused on origination or servicing, information comprehensiveness and quality have a significant impact on the business. By putting in place initiatives to develop more accurate data relating to loans and mortgage holders, mortgage loan originators and servicers can materially affect their business efficiency and effectiveness by lowering the risk profile of their loan portfolios and strengthening balance sheets, thereby enhancing competitiveness, visibility into market trends and improving the effectiveness and timeliness of decision making.
Lessons from the last crisis have demonstrated all too clearly that insufficient or wrong information about mortgages is more than just a servicing issue. To avoid similar business problems in the future, mortgage originators must ensure they have:
- Better transparency and more complete information, including from third party data sources, to reduce the risk profile of the loan portfolio and thus the quality of the organization’s balance sheet.
- Lowered capital adequacy provisions through enhanced regulatory reporting
- Enhanced ability to collateralize loans
- Improved quality and timeliness of regulatory reporting
- Improved ability to optimally price and underwrite loans
- Better information to optimize pipelines and target markets and support business decisions
- Better visibility into evolving market conditions
- More comprehensive information to monitor performance of all aspects of loan servicing
- Enhanced visibility and timeliness of insights into underperforming areas of business
- More cost effective and efficient loan servicing enabling volume growth at scale
- Utilizing third party demographic and market data to develop predictive models of mortgage holder’s payment behavior to flag potential issues and allow remedial action before mortgage holders get into serious trouble, and to provide a more comprehensive review of total risk
How Magnitude helps
- Magnitude’s unique business-model-driven approach to automating the data warehouse results in an industry leading time-to-value as more effort goes into defining the business requirements and less into the technical effort of building and maintaining the data warehouse. This enables a results oriented approach that delivers information into the hands of the loan originators and servicers when they need it.
- Avoid high risk “rip and replace” strategies, using the Magnitude Dynamic Information Warehouse (DIW) to incrementally integrate, manage and load transactional and operational data from disparate silo systems into the data warehouse. By enhancing visibility, reducing manual processes, and ensuring the accuracy of information, Magnitude enables loan officers, underwriters and analysts take action more quickly as conditions change and with the confidence that they have all the information they need.
- Enrich data from new and third party sources while maintaining quality and governance with Magnitude Master Data Management. By integrating 3rd party data efficiently, Magnitude MDM will allow more accurate and complete risk analysis, improve regulatory compliance and performance monitoring.
- Transform transactional and operational data to support regulatory reporting, business decision making and dashboard reporting with synchronized business and analytic views supporting your BI and reporting tools.
- Offers an agile technology and approach to accelerate project delivery time to meet business needs faster