Case Studies

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.