Borrower Income Calculator Application
Challenge
A large underwriting services customer specializing in due diligence services within the mortgage loan sector. Its core services include:
Mortgage Loan Reviews: Comprehensive analysis and reviews of mortgage loans to assess and mitigate risk.
Securitization Consulting: Supporting the structuring of mortgage-backed securities (RMBS) to optimize risk and return profiles.
Underwriting Support: Assisting clients in navigating complex risks associated with mortgage-backed securities.
Through these offerings, Customer provides essential risk management and consulting, particularly for mortgage and real estate finance clients.
Business Need
Opus also provides services to hedge funds, operating as a document processing company. A crucial part of their service involves underwriters assessing the risk level of loan applications, which are then sent back to banks. This process includes:
Extracting data from loan application PDFs.
Loading data into spreadsheets that contain formula-based calculations.
Transferring the results to a Third-party workflow engine, an internal application for further processing.
The company deals with 13 distinct types of income sheets, representing various income streams that borrowers may have. Each borrower can have one or more income types, making the calculation process time-intensive and complex.
Prior to the Income Calculator Application, underwriters spent 13-15 minutes per loan on this process.
A large underwriting services customer specializing in due diligence services within the mortgage loan sector. Its core services include:
Mortgage Loan Reviews: Comprehensive analysis and reviews of mortgage loans to assess and mitigate risk.
Securitization Consulting: Supporting the structuring of mortgage-backed securities (RMBS) to optimize risk and return profiles.
Underwriting Support: Assisting clients in navigating complex risks associated with mortgage-backed securities.
Through these offerings, Customer provides essential risk management and consulting, particularly for mortgage and real estate finance clients.
Business Need
Opus also provides services to hedge funds, operating as a document processing company. A crucial part of their service involves underwriters assessing the risk level of loan applications, which are then sent back to banks. This process includes:
Extracting data from loan application PDFs.
Loading data into spreadsheets that contain formula-based calculations.
Transferring the results to a Third-party workflow engine, an internal application for further processing.
The company deals with 13 distinct types of income sheets, representing various income streams that borrowers may have. Each borrower can have one or more income types, making the calculation process time-intensive and complex.
Prior to the Income Calculator Application, underwriters spent 13-15 minutes per loan on this process.
Solution
To streamline and optimize this time-consuming process, Customer developed the Income Calculator Application. The application automates critical aspects of the workflow, providing a faster and more accurate solution for handling loan data. Key functionalities include:
Automated Data Extraction: The application automatically pulls relevant financial data from loan application PDFs and converts the information into JSON files.
Loading of Data into the Calculator: As soon as a JSON file with the data arrives, it is instantly loaded into the Income Calculator Application for further processing.
Income Type Identification: The application automatically identifies the type(s) of income for each borrower, streamlining the categorization process.
Calculations: The application performs the necessary calculations on the income sheets, following a standardized approach for all 13 income types. This ensures consistent and accurate calculations for each loan application.
Summary Generation: Once all income types are calculated, the application provides a comprehensive summary of all income sources for each borrower, which can be used in risk assessments and other analyses.
To streamline and optimize this time-consuming process, Customer developed the Income Calculator Application. The application automates critical aspects of the workflow, providing a faster and more accurate solution for handling loan data. Key functionalities include:
Automated Data Extraction: The application automatically pulls relevant financial data from loan application PDFs and converts the information into JSON files.
Loading of Data into the Calculator: As soon as a JSON file with the data arrives, it is instantly loaded into the Income Calculator Application for further processing.
Income Type Identification: The application automatically identifies the type(s) of income for each borrower, streamlining the categorization process.
Calculations: The application performs the necessary calculations on the income sheets, following a standardized approach for all 13 income types. This ensures consistent and accurate calculations for each loan application.
Summary Generation: Once all income types are calculated, the application provides a comprehensive summary of all income sources for each borrower, which can be used in risk assessments and other analyses.
Results
The implementation of the Income Calculator Application led to significant improvements in efficiency and accuracy. Key outcomes include:
Reduction in Processing Time: Underwriters’ processing time was reduced from 13-15 minutes per loan to just 2 minutes per loan, resulting in substantial time savings and increased productivity.
Enhanced Accuracy: By automating data extraction, income type identification, and calculations, the application minimizes human errors, leading to more reliable results.
Improved Workflow Efficiency: Automated loading of data from JSON files and automated summary generation make the entire process seamless, allowing underwriters to process more loans within the same timeframe.
The implementation of the Income Calculator Application led to significant improvements in efficiency and accuracy. Key outcomes include:
Reduction in Processing Time: Underwriters’ processing time was reduced from 13-15 minutes per loan to just 2 minutes per loan, resulting in substantial time savings and increased productivity.
Enhanced Accuracy: By automating data extraction, income type identification, and calculations, the application minimizes human errors, leading to more reliable results.
Improved Workflow Efficiency: Automated loading of data from JSON files and automated summary generation make the entire process seamless, allowing underwriters to process more loans within the same timeframe.