BSI Financial Services, a leading provider of technology, loan subservicing and outsourcing services to banks and institutional investors in the residential mortgage sector, is using loan analytics to identify and resolve issues with loans before they become problems. By proactively focusing on loans with potential performance, compliance or customer documentation issues, BSI Financial is managing operating risk and improving loan quality with a high level of efficiency and effectiveness, according to the company’s release.
The proprietary analytics engine, Asset360SM, uses loan data and business rules to identify exceptions before they affect loan performance. BSI ASSET360, a life-of-loan analytics engine that sits atop the company’s enterprise-wide data warehouse, examines every loan in the company’s $10 billion servicing portfolio and checks the entire portfolio for nearly 500 exceptions every day.
Such exception reports are routed to operations, administration and onboarding teams for resolution. At the heart of this process is an exception-reporting engine developed using BSI Financial institutional knowledge plus input crowd-sourced from clients, ratings agencies and auditors. As internal and external feedback is provided, BSI Financial develops exception reporting around it.
Today, BSI ASSET360 produces analytics based on a data warehouse that consists of a daily refresh of more than 10,000 data elements that have been standardized across all loans. This data is used in compliance testing, time series analyses, exception reporting and to manage the firm’s data integrity program.
“BSI ASSET360 represents a smarter way to service loans,” BSI Financial President and CEO Gagan Sharma said in the release. “I can look at every loan every day and ASSET360 tells me where the exceptions are and allows me to catch exceptions much faster.”
“Having a common frame of reference takes the mystery out of servicing performance,” BSI Financial Analytics and Conversions Senior Vice President Jared Walsh said. “All the things we need to fix a loan are right in front of us.”
BSI Financial Chief Servicing Officer John Lawrence added: “With BSI ASSET360, servicers, investors and borrowers have access to all of the information they need. Customers are demanding to live in a digital world to access information themselves at any time, and we are giving them the ability to do that.”