Automating UCC Deadline Tracking at Lument
Overview
The Quality Assurance team at Lument, a prominent mortgage lender, spent hours of manual analysis tracking UCC deadlines in their loan portfolio. If the deadline to renew wasn’t met, the business could be damaged by financial losses and loss of priority position.
Because the data they were looking for came from multiple datasets, such as WIT, LC, and ITAX, the team had no programmatic way to synthesize and compare the loan information. BaseCap presented an automated approach with the unique capability to transform data from different systems and file types for rapid comparison against a golden source.
With BaseCap deployed, the team leader leveraged the extra time to focus his analysts on tasks that required more nuance and advanced problem solving.
What is a Uniform Commercial Code (UCC) filing?
UCC is a form of notice that lenders use when securing a borrower’s loan with an asset or group of assets. This enables lenders to seize the listed property as a way of recouping loan funds in the case of borrower default. Mortgage servicers like Lument Bank must meet filing deadlines to maintain priority position on the lien.
"Our goal with BaseCap was to automate a lot of that quality testing. We have a fair amount of data that we could compare in a more programmatic fashion...that would speed up our processing time and allow us to focus on other areas where we know the complexities are such that a real person has to do that testing because it's just too nuanced."
Challenge
Lument Bank processes large batches of loan documents every week, ingesting endless sets of .json’s, .xml’s, .xls’s, and .pdf’s into their system. The Quality Assurance team headed the significant effort to compare these spreadsheets and tables to their system of record.
One particular challenge required extensive reviews and additional staff to resolve: tracking UCC lien deadlines.
This task is critical as UCC lien deadlines secure the lender’s interest in collateral. Missing a UCC lien deadline can jeopardize the lender’s priority position and financial interests.
Missing a UCC lien deadline can jeopardize the lender’s priority position and financial interests.
The volume and frequency of loans made manual tracking impractical. With various jurisdictions imposing different deadlines and regulations, the complexity amplified for Lument. The company looked for a robust tech solution to ensure meticulous monitoring and adherence to UCC lien deadlines, while more efficiently directing the workload of their quality assurance personnel.
"Because the volume of the information is so vast, our servicing system doesn't really allow you to import and insert updates. It takes a manual process, and there is opportunity for human error where someone could be taking that third party data and they're not updating in the system so you kind of have a false positive, you know in your data set that you're trying to check for."
Solution
BaseCap’s data validation platform emerged as a comprehensive remedy, offering self-managed administrative capabilities critical for creating rules (policies) and comparing datasets efficiently. By facilitating automated comparisons and exception reporting, BaseCap addressed the need for accuracy and streamlined processes for the quality assurance team.
By facilitating automated comparisons and exception reporting, BaseCap addressed the need for accuracy and streamlined processes for the quality assurance team.
Jeff Dodson appreciated the tool’s capacity to define rules and compare datasets at the field level, simplifying complex data interpretation and mapping. Moreover, the tool’s adaptability allowed for expansion into various rule sets and data comparisons beyond UCC, enhancing reporting capabilities and quality control metrics.
"I think the tool is great because it's an out of the box solution where you can give a business admin, or someone that's knowledgeable enough from a tech perspective and a business perspective, to really drive and make the changes and really own the administration of the tool."
Result
Faster comparison of loans to Lument’s system of record
More time to investigate more nuanced loan defects
Maximized quality assurance budget through automation
The automation provided by BaseCap not only expedited processing times but also empowered Lument’s quality assurance team to focus on more nuanced qualitative assessments.
Investing in the technology reduced the costs associated with hiring and maintaining a larger workforce, thereby directly impacting the company’s bottom line. By automating tasks that would otherwise require human intervention, the organization saves both time and money while ensuring consistent and reliable analysis.
Moreover, BaseCap enhanced operational efficiency by accelerating the identification and assessment of risks and opportunities within the data. This agility enabled Lument to respond promptly to emerging trends, capitalize on opportunities, and mitigate potential threats, thereby optimizing its competitive position in the market.
[BaseCap] enabled Lument to respond promptly to emerging trends, capitalize on opportunities, and mitigate potential threats, thereby optimizing its competitive position in the market.
The partnership with BaseCap was characterized by commitment, flexibility, and creativity, fostering successful implementation and promising future advancements in data management and analysis. Lument recognized BaseCap’s tool as an out-of-the-box solution empowering business administrators to drive changes effectively, ensuring ongoing efficiency and accuracy in tracking critical deadlines.
"There's all sorts of reporting that can be done out of the tool in terms of comparison between different data sets but also just allowing you to create exception reporting and quality control metrics [to analyze] your portfolio for different metrics you want to track."
Thanks for reading!
Sign up to receive more tips for data validation.
Dive Deeper
The Impact of Bad Data
Optical Character Recognition
The Future of Mortgage Loan Servicing
Validating Data From Third Parties
Solving Loan Professionals’ Data Challenges with Checklist Automation
