Pegasystems Helps Mortgage Lenders Avoid Future Buybacks

Printer-friendly versionPDF version

New Consumer Lending Solution Brings Intelligent Automation for Error-Free Mortgage Origination

Cambridge, Mass.,– Oct. 25, 2010 –Pegasystems Inc. (NASDAQ: PEGA), the leader in business process management (BPM) and a leading provider of customer relationship management (CRM) solutions, today launched a new solution that allows lenders to automatically eliminate errors and improve productivity in mortgage origination.  TheConsumer Lending Solutionis the first commercially available multi-channel solution built expressly for loan origination that also offers advanced business process management capabilities.  It introduces consistent, end-to-end quality controls that range from the point of sale through post-closing.

The new solution debuts at a time when the market need is rampant: government-backed mortgage investors Fannie Mae and Freddie Mac continue to scrutinize mortgages and require banks to re-purchase, or "buy back," thousands upon thousands of mortgages written with missing, false or inaccurate data and documentation.  Analysts estimate that major lenders stand to lose as much as $180 billion, and some say it has already cost the four largest US-based lenders approximately more than $19 billion.

The Consumer Lending Solution gives lenders the ability to originate defect-free mortgages at the outset and avoid many of the reasons for triggering buy backs.  The solution enables more transparency, 100-percent quality control and higher rates of automation.  For example, a major, US-based lender already leveraging Pega technology for loan origination has increased productivity three-fold. 

The solution, which works with existing loan origination systems, is designed to automate the complex inner-workings of a paper-intensive process by eliminating risks that arise from manual errors, lag time and time-consuming data entry. 

News Source : Pegasystems Helps Mortgage Lenders Avoid Future Buybacks