With demand for loans skyrocketing, Paramount Residential Mortgage Group (PRMG) was taking weeks or even months to process loan requests, and manual data entry was creating delays due to errors. With help from UiPath Silver Partner Flobotics, automated loan processing gives brokers near real-time data access and is saving PRMG millions of dollars.
Paramount Residential Mortgage Group (PRMG) is a California-based mortgage banker that is licensed in 48 states. PRMG has retail, wholesale, and correspondent channels and has seen a surge in loan requests over the last few years. With a record volume of loans, it was clear they needed to automate the loan estimating and approval process if they were to keep pace with demand. To solve this problem, they approached Flobotics, a UiPath Silver Partner, to help them harness process automation to tame loan management.
With the continuing increase in loan requests, PRMG had to address several issues, including:
- Shortening the loan process, which could take weeks or months with multiple people and steps involved, including approvals and cross-signing multiple documents along the way.
- The entire loan process was being managed manually by the PRMG team and outsourced service providers, and the manual process was leading to multiple mistakes in loan processing.
- The loan data was inconsistent.
To streamline loan processing, PRMG wanted to deliver disclosures and closing documents using a web portal. This would not only give brokers faster access to loan paperwork and resources, but it would also automate much of the loan approval process and eliminate errors. Automation seemed a logical way to go, but the company had never experimented with robotic process automation (RPA) before. Automating loan processing seemed to be the perfect solution, so they started working with Flobotics on a proof of concept for RPA.
Brent Williams, Enterprise Architect, PRMG
Our work with Flobotics helps facilitate the process. It leverages the capabilities of different systems to make it happen, as no individual system has the capability on it's own. We're very satisfied with their work.
Automating Loan Documents
As experts in RPA, Flobotics performed an analysis of the problem and after looking at various options determined that UiPath would work best with Flobotics' technology. Once they had decided on UiPath, the next step was to analyze the loan processes involved and break them into subprocesses, set up a loan processing infrastructure, and then start creating sustainable robots to deliver automation ROI.
Once the subprocesses had been identified and the infrastructure created, the PRMG team created filters to identify specific data fields at various stages. Each filter would trigger an automated process. The project started with one process as a proof of concept, but additional robots were quickly added until there were five robots in production automating six tasks. Taken together, the tasks execute part of the entire process.
“Within very short-term working sessions, they're able to automate the steps I communicate to them,” said Brent Williams, Enterprise Architect for PRMG.
The tasks Flobotics automated using RPA included retrieving disclosure packages, sending disclosure packages to the broker, sending closing packages to the broker, creating a system notification that there is intent to finalize a loan, entering payment data into the system, and downloading, organizing, and transferring data between systems.
The result was a highly efficient approach to accumulating data and entering it into the system as quickly as possible, ensuring that brokers had access to the latest data in near real-time.
Seeing Real Savings with RPA
Various stakeholders involved in the PRMG loan process have benefitted from RPA. Brokers can now work faster with almost immediate access to the information they need. Customers have their loans processed quickly with fewer errors. More importantly, PRMG, can process a higher volume of loans faster than ever before. The system is highly scalable, and more accurate which translates into a better customer experience as well. PRMG also is outsourcing less work, and the in-house team is required to perform fewer repetitive tasks related to forms and paperwork so they can focus on more critical tasks.
After just a few months, the results show how highly successful the PRMG RPA program as been. The RPA infrastructure is averaging 550 automated tasks daily and growing. Each task saves four minutes so there is an estimated savings of about 40 hours in manual labor each day. In the first 36 months, PRMG expects to realize savings of $1.2 million, with an estimated return of $6 in annual savings for every $1 invested.
In addition to shortening the time needed to process loan applications, there have been other benefits that have a more direct impact on operating costs. With RPA, underwriters have realized a 50% improvement in underwrites per day which translates into $2 million in savings. PRMG is expecting another 25% enhancement in productivity due to the improved accuracy and quality of the underwrites.
"Our work with Flobotics helps facilitate the process. It leverages the capabilities of different systems to make it happen, as no individual system has the capability on its own," said Williams. "We're very satisfied with their work."
After the first six months, Flobotics is still working with PRMG to develop new robots using UiPath. With a tried and tested RPA infrastructure in place, Flobotics is helping PRMG harness additional technologies to improve operations. The partnership has been so successful that the initiative was awarded the Best Use of Data Award during the ICE Mortgage Technology Innovation Award 2021.
Brent Williams, Enterprise Architect, PRMG
Within very short-term working sessions, they're able to automate the steps I communicate to them.
BY THE NUMBERS
- 6:1Numbers of dollars saved versus dollars invested
- $2 MillionSaved from 50% improvement in daily underwriter efficiency
- 25%Additional savings by eliminating manual data entry errors
- 40Hours of labor saved each day