The client is one of the largest mortgage lenders and correspondent producers in the United States, with a nationwide network of correspondent sellers serving over 400,000 borrowers.
The customer had inconsistent results from various income calculation tools used in its processing and underwriting functions, but observed that loans that caculated income through Indecomm’s IncomeGenius had enhanced accuracy and drastically reduced repurchase risk. The client sought to expand that success by enabling the use of IncomeGenius throughout its correspondent lending channel.
Low Pull-Through Rates: Inaccurate income calculations, especially for self-employed borrowers, resulted in a significant drop in application pull-through rates.
Repurchase Risks: High repurchase rates on correspondent loan files due to these inaccuracies were a major financial and reputational concern.
Operational Inefficiency: Existing tools and processes for income calculation were inconsistent and time-consuming, leading to operational setbacks. As a result, associates were not effectively using the solutions.
Solution Summary and Key Benefits
The client observed a remarkable reduction in repurchase risk, nearing zero percent, on loan files that employed IncomeGenius for income calculations pertaining to self-employed borrowers. Following this success, the client expanded the use of IncomeGenius across its entire correspondent network. This strategic rollout led to an 88% improvement in calculation accuracy and a 23% increase in application pull-through rates. To maximize the benefits, the client and Indecomm worked closely together to enhance deployment and user engagement among top correspondents, employing targeted solution training and coordinated marketing campaigns
Accuracy: IncomeGenius improved the calculation accuracy of its correspondent loan files by 88%, increasing application pull-through by 23%.
Adoption: Indecomm trained and drove IncomeGenius deployment to the client’s top correspondent network partners, which improved overall pull-through and underwriting timelines.
Risk Reduction: Repurchase risk as a result of incorrect income calculations was significantly lower when correspondents used IncomeGenius.