Case Studies

Loan Origination Systems

  • A $10+ billion commercial bank engaged Teraverde to revise its existing mortgage banking process from initial customer contact through servicing and securitization. The bank uses the Encompass LOS. We also assisted a predecessor entity with risk assessments in the lending, deposit, liquidity management and stress testing areas connected with an enforcement agreement from a federal regulator.
  • We performed Encompass LOS optimization and customization for a top 3 independent mortgage banker, and continue to provide Encompass LOS support.
  • We provided on-site training using Encompass LOS systems to several top 10 lenders.
  • Half a dozen various credit union engaged Teraverde to evaluate and revise its existing mortgage banking process from initial customer contact through servicing. We assisted the Credit Unions to revise its Encompass LOS processes and IT systems to improve profit, improve compliance, reduce errors and repurchase risk.
  • Teraverde assisted a successful regional mortgage banker with its acquisition by a top 20 mortgage banker, both using Encompass LOS. We assisted in identification of suitable acquirers, analyzed and assisted with price negotiation, prepared definitive purchase agreement materials and worked with seller to close the purchase as well as plan for integration of the two Encompass systems.
  • Teraverde assisted a top 5 builder-owned independent mortgage lender focused on construction and take-out financing for specific training for Loan Officers and Processors with their customized workflow, implementation and usage of their new LOS platform.
  • Assisted several large mortgage bankers to customize and extend the functionality of Motivity business intelligence software using an Encompass LOS.
  • Assisted a large mortgage banker to adapt Motivity to measure individual productivity, throughput and profitability of mortgage banking activities using an Encompass LOS.
  • We created an integration of Encompass LOS with a large document provider of origination and closing documents.
  • Teraverde assisted a top 10 independent mortgage lender for specific training for Loan Officers, Processors, Underwriters and Closers with their customized workflow, implementation and usage of their new Encompass LOS platform. The training included on-site instruction, documentation for training, and leave-behind materials for each of the departments.
  • Teraverde created a web-based end-to-end construction platform for a top 15 independent mortgage lender to utilize the Encompass LOS platform data to create draw schedules, manage draw requests and allow inspectors to upload reports to the lender. The system could be viewed from inside the LOS as well as from external parties through the website.
  • Assisted an FDIC insured bank negotiate and install a new LOS. We customized the LOS, performed training for the client, assisted with user acceptance testing. The project was completed on time and on budget.
  • Teraverde provides a Top 10 independent mortgage lender with their LOS system administration by assisting, creating and maintaining their most challenging and complex rules on an on-going basis.
  • Completed a review and best practice remediation of an Encompass LOS system for an independent mortgage company to increase productivity, reduce security concerns and increase adherence to the latest recommendations and regulations by the regulatory community.
  • Teraverde assisted a Super Regional Bank in the automation of sending both data and documents to an external document depository from their LOS. Teraverde also created an automated method for loan boarding in their core banking platform for servicing and accounting. The automation included a new workflow with processes and procedures and historical LOS data integrity validations.
  • Teraverde created a method by which a larger regional bank can maintain the tasks associated with the loan process to be tracked, monitored and communicated effectively by textual and visual queues to members of the loan file staff resulting in an overall reduction of loan process time for the lender. The bank used the Encompass LOS.
  • Teraverde created a standardized method to extract data from the Ellie Mae Encompass360 platform to automatically pass the information to Bestborn Loan Vision software thereby eliminating data errors and increase speed of booking transactions for mortgages.

Business Process

  • Working with a top 3 private label mortgage securitizer, we redesigned the workflows and business processes for three lines of business, each using its own Encompass LOS system onto a single integrated system approach.
  • We assisted a Caribbean-based non-U.S. lender adapt Encompass to operate in local currency and interface with the depository core system serving that financial institution.
  • Documented, analyzed and redesigned the consumer credit underwriting process and adverse action notification process to reduce regulatory compliance exceptions and fair lending issues for a for a $50+ billion federally chartered bank issuer of 20+ national private label credit cards, processing over 800,000 applications per month.
  • We assisted a $100 billion+ bank holding company evaluate internal processes and controls involved in the issuance of over $20 billion of private label mortgage securities.
  • We are assisting a federal agency to evaluate internal controls and processes that were in place regarding a $100 billion+ depository’s discontinued third-party mortgage lending operations.
  • Teraverde assisted an independent mortgage company on their implementation of an LOS by managing third-party integration providers. Additionally, with their pricing and hedging firm, Teraverde created a systemized way to track Secondary Market activities and provided guidance on the methodologies to account for Best Effort and Mandatory tracking of loans in the accounting platform to conform to both mortgage banking best practices and GAAP.
  • Teraverde assisted a mid-sized regional bank in the automation of sending both data and documents to their sub-servicer from the Encompass LOS. The automation included a new workflow with process and procedures and historical LOS data integrity validations.
  • Assisted a large regional bank mortgage division in the review and best practice remediation of their LOS system to increase productivity, reduce security concerns and increase internal adherence to bank process and procedures.
  • Teraverde assisted with the collecting of requirements for a new system designed for the mortgage lending team of a large residential and commercial lender with primary focus in agricultural lending. The requirements gathered across several sites to include the entire loan process to condense the multi-tenant system that was currently in use by sales and operational staff into a uniform system. The requirements report was then utilized in the user experience and user interface design with the assistance of Teraverde’s input for industry best practices.

Profit Improvements

  • We were engaged to evaluate the loan servicing controls and procedures in place for a $100+ billion bank’s servicing portfolio that serviced over one million loans.
  • Teraverde assisted a bank’s Board of Directors review its $1+ billion mortgage banking operation, and assess causes of low productivity and poor profitability. The review was extended to meet requirements of a regulatory order to assess the appropriate mortgage volume, capital levels and controls in an FDIC insured bank.
  • Teraverde assisted a top 20 mortgage banker implement a new pricing engine integrated with Encompass LOS while merger with another company. We performed testing and validation of pricing, and prepared extensive test scripting, documented exceptions, worked with client and pricing engine provider to clear exceptions, retest pricing and launch the pricing engine with assurance that pricing results conformed to pricing strategy for all business channels, regions and branches.
  • We are assisting a $25 billion bank owned mortgage banker revise its Encompass LOS workflows and business processes, as well as integrate a southeastern U.S. bank acquisition focusing primarily on foreign national lending to South American clients.
  • We performed an overall risk assessment for a bank engaged in nationwide mortgage direct and ethnic lending with an $20 billion mortgage loan servicing portfolio.
  • Teraverde assisted a $3+ billion OCC regulated bank engaged us to review and mitigate residential underwriting and servicing issues on first mortgages and HELOCS to avoid enforcement proceedings from the OCC. The bank used the Encompass LOS.
  • Teraverde was retained by the Board of Directors of a bank to review a multi-billion mortgage banking operation that was not profitable. We provided an end to end review, and identified numerous material issues, as well as detecting and quantifying a previously undetected multi-branch multi-pronged fraud perpetrated by collusive branch managers and other personnel. The bank used the Encompass LOS.
  • Teraverde assisted a bank service provider by implementing a Compliance Management System to remediate servicing requirement and regulatory issues cited by state examiners.
  • Teraverde serves as an expert witness for a federal regulator regarding insurance claim litigation against a consortia of multinational insurance companies for claims arising from fraud losses in U.S. mortgage correspondent lending activities.
  • Teraverde assisted a large independent mortgage banker in New York State licensing matters revolving around risk management matters and assisted with a strategic and business plan. The efforts resulted in granting a New York state mortgage banking license.
  • Assisted a NYSE public traded bank establish a mortgage correspondent lending operation.
  • Teraverde assisted two large regional banks during their merger/acquisition process by providing data validation and LOS system configuration differences to help the companies determine which system configuration elements would be retained, modified or removed during the merger. Teraverde then provided assistance in the modification and testing of system changes.
  • Assisted a top 20 mortgage banker as an expert witness to defend litigation involving alleged trade secret matters.