Loan Vision Predictive Analytics & Modeling​

Comprehensive Suite of Strategic Solutions​

Challenge

Challenge

Accounting & Finance teams need advanced capabilities to become strategic partners to executives, sales and operations

Solution

Solution

Comprehensive suite of solutions providing advanced data modeling & predictive capabilities combining both LOS & Loan Vision data.

Value

Value

Combining LOS and General Ledger data provides un-matched visibility, valuable insights. Enabling finance executives with an avenue to use the analysis to build a sustainable, profitable business model

TopTiering

What it is:

Stack ranks Revenue and Rate (bps) of production by branch, broker/lender and loan officer.  Provides ability to compare & contrast the relationship between Revenue, Volume, Revenue per Loan BPS and Revenue per Loan $

What it does:

Using the Pareto Principle (80/20 rule), groups entities into meaningful, actionable performance buckets (High Performers, Mid Performers and Low Performers).

Why is it valuable:

Creating a sustainable, profitable business model relies on the ability to segment your organization into performance tiers, and take appropriate actions based on these insights

Company Scorecard

What it is:

Pipeline & Volume Analysis – how are branches, TPO’s, and employees stacking up for the credit box and approval, denied, and withdrawn rates?  By Loan Purpose, Loan Type?

What it does:

Provides executives a 360 degree visibility into new business volume, fallout and associated credit box kpi’s across all relevant time dimensions.

Why is it valuable:

  • Summary results at your fingertips
  • Updated automatically in near-real time
  • Slice/Pivot across any dimension
  • Single version of the truth

Closing Projections

What it is:

Intra-month closing predictions – algorithm based on milestones/loan stage and likelihood of progression through the pipeline

What it does:

Groups all active loans within a loan stage, looks back at recent history to calculate the estimated pull through, identifies predicted fallout and creates a month end close forecast

Why is it valuable:

  • Shifts an organization’s attention from “what happened” to “what will happen and what can I do about it”
  • Identifies largest opportunity with fallout and provides a recommendation of where to focus efforts

Profit & Loss Views

What it is:

Traditional Profit & Loss pivot across dimensions not typically available in the GL

What it does:

The Trial Balance & Chart of Accounts are used to build a traditional view of the profit and loss.  Behind this profit and loss is a data model joining traditional GL dimensions with fields from the Loan Originations System.

Why is it valuable:

The question is different every day, users can utilize the “Global Search” capabilities to find insights not previously available, limiting the need for spreadsheet work.

Dynamic Variance Analysis

What it is:

Financial variance analysis on steroids

What it does:

A natural extension of the Profit & Loss views, this solution provides ability to research and understand virtually any variance across any dimension from your GL and LOS.

Why is it valuable:

  • Elimination of offline, manual & time-consuming spreadsheet processes
  • “Google-like” search capabilities reduce the need for voluminous report distribution
  • Details are always connected to the views and one click away.
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Finance Transformation in Mortgage Lending

Software companies, report developers, and our friends in IT have unsuccessfully tried to solve our information needs by building complicated data cubes and/or providing a countless number of canned reports.  To make things worse, business rules, field definitions and expressions are often buried in a massive array of code.  There is one fundamental challenge that this traditional approach has failed to address: the question is different every day.  Pre-aggregating results in a complicated cube or in dozens (even hundreds) of reports has been an impractical solution to the challenge from the beginning.  It is simply not possible for a report developer, or an IT organization to anticipate every question that finance and business users need answered.

Finance & Accounting professionals’ response to this fundamental challenge is to download the data and essentially become data experts and spreadsheet wizards.  This process is manual, time consuming and carries a myriad of risks.  Worse, the knowledge and expertise that resides in the CFO’s organization becomes highly under-utilized as we consume all of our time and resources on efforts to describe “what happened”?

The ”Analytics Maturity Model”, originally published by Gartner over 10 years ago, has been adapted to describe a better future for mortgage lending firms.  One where the potential and business acumen that resides in the CFO organization can be unlocked, where the journey to becoming a strategic business partner begins.

Loan Vision and Teraverde have created a technology partnership offering “Loan Vision Predictive Analytics & Modeling (LV-PAM).  LV-PAM is powered by Coheus®, an award-winning data & analytics platform built specifically for the mortgage industry.  We recognize that the path to becoming a strategic business partner starts with streamlining the non-value added activity described above but there is a very important second angle to our approach!  We are delivering data & analytics solutions from both the General Ledger and the Loan Origination System to the Finance team and displaying it directly inside the Loan Vision system.  These solutions are designed to:

  • Transform the finance organization by streamlining and automating a significant amount of manual, risky, spreadsheet work
  • Diagnose business related performance and its impact on the financial statements with un-matched visibility/transparency (with loan level detail)
  • Predict month end close estimates at the loan level creating actionable insights; and
  • Prescribe areas of the pipeline recommended actions to improve pull-through, organizational efficiency & profitability.

More to follow on top use cases that can be addressed using these game changing additions to the Loan Vision platform.

 

Paul Van Siclen

SVP, Client Strategies

Teraverde Financial