Home Equity Performance Analysis

Client Need : A non-bank financial institution, originating (and servicing) home equity products through a third party provider, was not achieving its desired capture rate. The 3 rd party provider had made a number of policy and process change recommendations to enable the client to improve performance, but the client wanted an objective analysis.

Solution: BenchMark performed an analysis of the entire origination process from lead management through post-closing review and booking. BenchMark compared policy, process, technology, staffing/scheduling and turn-around times to that of high performing home equity lenders and determined that burdensome and time-consuming policy-driven processes were negatively impacting capture rate. BenchMark presented the client with detailed recommendations designed to improve client performance.

Results: Implementation of BenchMark’s performance improvement recommendations would result in a 50% reduction in overall origination turn-around time resulting in a better customer experience and improved capture rate. Capture rate and efficiency improvements to industry median performance levels would result in client net revenue of $500,000 and a minimum of $1 million in third party processor cost reductions.