Exception Tracking

The Document Tracking module helps the bank to minimize its risks. And, it proves to auditors that the bank is effectively managing and monitoring any exceptions. This module manages all aspects of document tracking throughout a loan’s lifetime.

The System knows what types of documents are required for every type of loan, it walks the Quality Control team through the process of setting up a loan and recording all documents that are in the final loan packet. It reminds Lending and Quality Control to follow-up on any documents that are missing or that need to be renewed. It provides extensive contact management tools to help QC and lenders to quickly follow-up on those missing documents and to record their interactions with the contact persons. And, it alerts managers along the full chain of command of any exceptions that require their attention.

Document Tracking streamlines the tracking process, reducing labor costs and improving quality. At the same time, it closes the knowledge gap between Quality Control and Lending. Both teams have a complete picture of the loan portfolio and know what needs to be done to ensure the portfolio is in the best of condition.

The Benefits

The Document Tracking System improves the bank’s risk position by:

• Ensuring all authorized associates know what information is needed for every account and product.
• Maintaining a rich data repository - the System knows what documents are required for every product type and when those documents must be obtained/updated.
• Improving quality control - the System reminds loan clerks to review all critical data elements on each document type.
• Automatically generating reminders to staff, vendors and customers.
• Automatically escalating potential problems to those in authority.
• Producing “red flag” reports on a variety of topics. These reports can, for example, identify which officers are routinely waiving requirements or have a substantial number of exceptions, which customers have a substantial number of exceptions, etc. By using a rules system, the system can identify potential problems and trends instantly and send email alerts to the appropriate team members.
• The System also reduces the cost of the current exception tracking process by:
  • Eliminating manual data entry, where possible, by drawing data from the bank’s data warehouse.
  • Abolishing paper reports and the manual routing of those reports.
  • Reducing follow-up costs by grouping all problems by customer and vendor and routing those calls to the Call Center.

The Features

• As required documentation is about to expire, the System generates ticklers for sending letters to request updated information. The System issues these notices before there is an exception. An exception will only result if the documentation is not updated with current information in a timely manner.
• The new System has a list of pre-defined requirements for all loan types (or all product types as we move to non-loan products). When a new loan is created, the System will pre-populate with these requirements.
• The System supports up to five non-standard requirements. The majority of loans will have the same requirements, but a small percentage will have special requirements.
• The System generates letters for all documentation requests.
• The System generates To Do lists for all its users. The users may elect to use the following communication methods:
  • Standard Mail – The System prints form letters with information requests.
  • Email – The bank provides email forms, and users may adapt them as needed. The System records what was sent and to whom.
  • Phone – The System provides a list of people to call based on the exception status. These lists are grouped by contact. For example, all requests for a particular insurance company/agent are grouped together to reduce the number of phone calls. Users are prompted to record the results of each call.
  • Fax – The System generates electronic outbound fax if a fax number is known.
• The System provides robust Search and reporting/organizing capabilities.
• The System archives loans that are paid off.
• Officers who are authorized to handle/coordinate certain loans (relationships) can track, view and annotate their customer’s records, but not change any other aspects of the record.
• Quality control is prompted to enter/review all critical data elements such as signature, renewal dates, etc. Each requirement type differs in its checklist.
• Management may configure to allow Loan Officers to waive all, some or none of the requirements. The System records and tracks which Officers are waiving which requirements can be waived.
• Loan officers can mark items as “on the way,” meaning they have received the documentation and verified that it is accurate.
• Only loan clerks can mark documentation as received.
• The System encourages loan officers to view exception reports on a daily basis and managers to view them on a weekly basis by sending email reminders.
• The System sends summary emails on daily basis to loan officers detailing how many outstanding exceptions they have.
• The System sends summary emails on a bi-weekly or monthly basis to management detailing the number of outstanding exceptions by severity and loan officer.
• Loan officers and clerks may enter their notes on exceptions.