Who:
PrimeLending, a PlainsCapital Company, Dallas
Ken Mezger, Process Improvement Manager
When:
Implemented ConformX in 2010
What:
PrimeLending converted to Docutech’s ConformX, a Web-based solution that transforms an Internet connection into a 24 hour closing document provider in 2010 as part of an LOS conversion to Dorado’s ChannelMaster. Since then, the lender has relied on Docutech for dynamic, compliance mortgage documents in all 50 states. Capitalizing on a strong relationship, PrimeLending worked with Docutech in 2012 to build a sFTP document transfer solution to enable storage and versioning of initial disclosure document packages generated in ConformX, saving the lender time in managing compliance, reporting to investors and solving post-closing issues.
The Challenge
PrimeLending, which had more than $8 billion in mortgage loan volume in 2011, operates 280 branches and is licensed to originate and close loans in all 50 states. As a result, the lender’s documents and disclosures need to comply with a complex combination of federal, state and local requirements. Further complicating matters is that PrimeLending sells loans to many investors. This creates an additional challenge of providing documents that meet those investors’ requirements.
In order to assist with meeting regulatory and investor compliance, PrimeLending wanted a solution to capture all of the initial disclosure packages that were generated in ConformX and have them securely sent to their imaging system.
“Our Executive Team asked us to capture every disclosure instance that we sent to a borrower to cover the needs of several departments,” said Mezger. “The Compliance team wanted this functionality to assist with Good Faith Estimate auditing and ensuring the initial disclosures were accurately disclosed; the Operations team sought this solution to assist with investor deliveries and resolving post closing issues; and the Technology team saw this solution as a way to have some behind the scenes automation that would ensure the PrimeLending would not have to rely on a manual process from the LOS user.”
The Solution
PrimeLending submitted a request for an initial disclosure transfer enhancement on the next regularly scheduled conference call that is a part of Docutech’s ongoing ConformX support with PrimeLending. Immediately, technical resources were brought in on both sides, requirements were gathered and a project plan was formed. Through continued collaboration between the two companies, the sFTP document transfer function was created to securely transfer initial disclosures electronically. Mezger said that the delivery of the final solution along with the corresponding quality assurance went smoothly.
“This type of project requires a high level of collaboration, and we found that Docutech’s Development team did a great job of working with our Technology team to ensure this project’s success,” said Mezger.
Mezger also mentioned that Docutech over delivered on building the sFTP program, adding in additional functionality that was not part of the original request.
“Docutech met our deadlines and delivered more functionality than we had initially requested,” Mezger said. “They gave careful thought to the project and provided options that would satisfy a diverse set of lenders.”
The Results
ConformX provides PrimeLending with two primary benefits. First, in time saved on maintaining document compliance. ConformX creates precise document packages tailored for each loan’s specific needs, which are guaranteed to be in full compliance with federal, state and investor guidelines. By maintaining a library of loan documents compliant with all rules and regulations, ConformX removes the burden of checking each document and generates the package quickly and efficiently.
Second, operational productivity is put into motion by the Docutech software. The sFTP Document Transfer is an excellent example of the tools that ConformX supplies that assist in operational efficiencies.
“Time and resources spent tracking document compliance is money,” said Mezger. “We rely on Docutech to keep our documents compliant with federal, state and investor guidelines. Docutech guarantees not only that all of their loan documents are in full compliance with all possible regulations, but also promises to pay all additional expenses in the event a loan document is improperly used. As we use ConformX to print all of our documents from initial disclosures through post-closing documents this compliance guarantee is very important to us.”
As for the sFTP program, Mezger has been very pleased with the additional peace of mind afforded to PrimeLending that comes from closely tracking disclosures.
“All of teams involved in this project – compliance, operations and technology – were pleased with the outcome of this project,” Mezger said. “Each of them came away with the result that they were looking for.”
About PrimeLending
PrimeLending, a PlainsCapital Company, is a Dallas-based residential mortgage originator with more than 280 locations in 39 states and more than 2,300 employees. Offering fixed, adjustable rate, FHA, VA and JUMBO loans, permanent financing, refinancing and relocation programs, PrimeLending is licensed to originate and close loans in all 50 states. Founded in 1986, PrimeLending was ranked the No. 3 FHA lender in Texas and No. 6 in the nation for 2011. Find more information at PrimeLending.com.
Source: FHA rankings are obtained from MortgageDataWeb.com and are determined from data collected by the Department of Housing and Urban Development
About Docutech
Since 1991, Docutech Corp. (Docutech) has provided outstanding compliance services and documentation technology for the mortgage industry. Docutech’s software interfaces with leading loan origination systems (LOS) and enables mortgage professionals to generate documents locally. Docutech manages and secures all information needed for a loan, guaranteeing accuracy, security and compliance. For more information visit the company’s Web site at www.Docutechcorp.com.