|Navy Federal Credit Union Implements Anytime, Anywhere Mortgage Closings with Fully Integrated eClosing Workflow Enabled by Fiserv Lending Solutions' UniFi PRO Mortgage Loan Origination and Processing System|
Fiserv Lending Solutions, a unit of Fiserv, Inc. (Nasdaq:FISV), has announced an innovative partnership with Navy Federal Credit Union of Vienna, Virginia. Through its UniFi(R) PRO Mortgage loan origination system (LOS), Fiserv is providing the credit union with the capability to automate the document preparation and delivery process for electronic-signature-enabled mortgage loan closings. This functionality, currently in live production at Navy Federal Credit Union, is expected to be made available to all UniFi PRO Mortgage software users in a Fiserv software release slated for delivery in the first quarter of 2004.
Navy Federal, a UniFi PRO Mortgage LOS client since 1999, is the world's largest credit union -and the nation's largest credit-union mortgage lender. The credit union has $20 billion in assets and originated nearly $5.1 billion in mortgage and home-equity loans from January 1 through August 31, 2003. With its new "eClosing" solution, Navy Federal can now provide faster and better service to its members. In addition, the credit union can streamline its lending process and reduce the amount of paper required to process and close a mortgage.
"We have partnered with Navy Federal on several occasions, and we are continually impressed with their forward-thinking approach to automation and their commitment to high-quality member service," said John Tenuta, President of Fiserv Lending Solutions. "This collaborative effort, which takes us one step closer to realizing the industry's vision of the fully electronic mortgage, is just the latest success in a valuable partnership."
An "eMortgage" is a mortgage loan that is electronically closed (via "eClosing"), and is sold and delivered by paperless means. During closing, documents can be executed with an electronic signature ("eSignature"). Generating eMortgages has many benefits, including reduced printing/courier costs and simplified version control (documents can be reviewed online before the loan is closed by a settlement agent). Other advantages include fewer changes at the closing table, the convenience of eSignatures, and faster delivery of mortgage loans to investors.
"Navy Federal can better serve its members by simplifying the closing and settlement process, as well as by increasing the quality of our mortgage loans," said Karen Pearson, AVP of Automated Mortgage Systems for Navy Federal Credit Union. "We expect to reduce the overall cost to process a loan - from application to delivery to an investor - by more than $230 per loan, and we plan to use the savings to further improve our productivity and pricing."
The Federal National Mortgage Association (Fannie Mae) released formal eMortgage requirements in June 2002. UniFi PRO Mortgage's eMortgage Workflow facilitates the production of eClosing data and documents that help lenders such as Navy Federal meet the technology's formal implementation requirements.
"eMortgages have tremendous potential to help lenders reduce time, costs and errors in the mortgage origination process, which could help lower the cost of homeownership," said Charlotte Haberaecker, Managing Director of eBusiness Solutions at Fannie Mae(R). "Navy Federal Credit Union has been a leader in using technology to better serve its members, and its early embrace of the paperless mortgage is another example of its forward-thinking approach."
Navy Federal automated the exchange of eSignature-enabled data and closing documents through a fully integrated eMortgage workflow facilitated by Fiserv Lending Solutions' UniFi PRO Mortgage LOS. Navy Federal's lending staff now uses UniFi PRO Mortgage's screen displays and Internet-enabled communications architecture to seamlessly place, update or cancel electronic orders; review loan status; and deliver closing documents. As a result of this integration, manual data entry is eliminated and the integrity of loan data and documents is maintained throughout the loan process.
"Integrated data sharing is helping us reinvent our business processes," observed Pearson. "The immediate electronic exchange of data and documents enables us to respond quickly to changes at the closing table; and it keeps UniFi PRO Mortgage in sync with how the loan actually closed. We don't have to worry about 'pen-and-ink' changes that are not reflected in the system. In addition, we're positioned to deliver loans more quickly and profitably to the secondary market."
Loan data in the UniFi PRO Mortgage database are automatically passed to Navy Federal as an XML file, which enables fast, standards-based information exchange. In addition to being used to manage the packaging and delivery of electronic closing documents, loan data are used to execute specific actions - such as electronically notifying settlement agents that closing documents have been delivered.
"Navy Federal Credit Union serves the proud members of the Navy and Marine Corps in more than 98 locations worldwide. We operate under the credo, 'We Serve Where You Serve;' and by implementing eMortgages, we can now electronically sign and close mortgage loans in every state and even on-board a ship," said Pearson. "For more than 70 years, Navy Federal has been committed to providing convenient account access and transaction capabilities for military personnel and their families - no matter where they are. That is our number-one priority, and eMortgages are helping us to fulfill our mission to deliver innovative and responsive banking services."
Increasing the efficiency of a complex, highly interactive process such as a mortgage-loan closing required the coordinated effort of proven mortgage-industry leaders. Together, Fiserv Lending Solutions and Navy Federal Credit Union have developed a solution that not only advances the adoption of the eMortgage as a viable lending option, but delivers significant process and service improvements that benefit all participants in the lending process - from borrower to lender, settlement agent and investor.
"The support for eMortgages that we are building into UniFi PRO Mortgage puts the technology of the future into the workflow of today," said Tenuta. "Our alliance with Navy Federal Credit Union demonstrates that the 'end-to-end' electronic mortgage can provide real value, including reduced costs and improved service throughout in the lending process."
Navy Federal Credit Union, the world's largest credit union and America's largest credit-union mortgage lender, has $20 billion in assets, 2.4 million members worldwide, and has closed more than $6 billion in mortgage and home-equity loans in 2002. Navy Federal serves military and civilian personnel of the Navy and Marine Corps and their families. The credit union began providing mortgages in 1979, and now offers mortgage services in all 50 states and the District of Columbia. Headquartered in Vienna, Virginia, Navy Federal Credit Union operates 98 branch offices and 269 proprietary ATMs worldwide.
Fiserv Lending Solutions, a Lake Mary, Florida-based business unit of Fiserv, Inc, is a leading provider of loan origination and processing technology to the financial services industry. Fiserv Lending Solutions can be found on the Internet at www.fiservlendingsolutions.com. Its products include:
-- UniFi PRO Mortgage, which is a highly customizable, enterprise-wide lending solution of unlimited scalability for larger, multi-channel lenders.
-- easyLENDER(R) Mortgage and easyLENDER Consumer/Commercial, which are complete, Microsoft Windows(R)-based software packages that automate every phase of loan origination, processing and closing for smaller to mid-range banks, thrifts, and credit unions.
Fiserv, Inc. (Nasdaq: FISV) provides industry-leading information management systems and services to the financial industry, including software and systems solutions, transaction processing, outsourcing, and business process outsourcing. The company serves more than 14,000 clients worldwide, including credit unions, savings institutions, banks, lenders, broker-dealers, financial planners/investment advisers, insurance companies and agents, and self-insured employers. Headquartered in Brookfield, Wisconsin, Fiserv reported 2002 revenues of $2.2 billion. Fiserv can be found on the Internet at www.fiserv.com.