When your business thrives on referrals, making each and every customer experience exemplary is your mission. Logix FCU has built their credit union this way, sourcing 65% of new business from member recommendations. The company’s mortgage division thrives this way as well.
Logix Federal Credit Union has members across the U.S., but the majority are located in southern California. In this competitive and high-priced market, quickly qualifying borrowers for a mortgage by accurately calculating income is critical to keeping and attracting new members.
In 2021, with high volumes challenging all lenders, Logix set out to find a better, more automated solution for self-employed borrower income calculation. Without technology, the time it takes, and the process used, will naturally vary from underwriter to underwriter.
Logix wanted to put tighter controls in place to standardize this type of income calculation and evaluate income sooner in the origination process. They needed a solution that would expedite the borrower experience and meet their high standards of quality.
Late in 2021, after evaluation of several technologies, Logix began to implement LoanBeam® self-employed income calculation technology. One of the key selling points was the fact that the solution was certified with rep and warrant relief by both GSEs.
During the implementation of the solution, the company wanted to ensure a broad set of staff, approximately 50 people, were trained on the solution. All underwriters were trained so they could understand how the calculations could be examined and modified to align with their underwriting practices. As well, both the pre-funding and post close audit teams were trained so they would know how look for the LoanBeam workbook in the eFolder and confirm tax returns in the file. Finally, managers were also trained to provide visibility into the origination controls the company was putting into place.
Today, instead of manually searching through pages of complex tax documents for a volume of 100+ apps per month, a designated team of Logix employees now use LoanBeam technology to convert tax documents into GSE-certified self-employed income calculations and consumable data points all within minutes.
If tax returns are found in the file, the LoanBeam tool is used as a matter of practice. It is so quick and easy, that even if the borrower is not self-employed, the data and the workbooks are there for reference.
To ensure they are getting the full return on investment, Logix also monitors adherence to their documented policy that the LoanBeam tool is being used for all self-employed income calculations. They track this on a weekly basis, which rolls up to quarterly reporting shared with management.
Since implementing the solution, the quality control team at EMM Loans continues to be impressed with the responsiveness of the audit services managers that support their account. All questions are given thoughtful consideration and LoanLogics works with them to find solutions to whatever need they might have.
Maria Monahan, Post Quality Control Manager, calls it a “true partnership, where we are both aligned on the goal and help each other out.”
Some key examples of this include LoanLogics’ response to the March 2023 Fannie Mae change to a 90-day post close audit review timeline. The process change that needed to occur was communicated and implemented well before the September 1st implementation date.
In addition, Tanya Joyce, VP Quality Assurance and Post Quality Control, reciprocated with LoanLogics, recommending a change to VOI/VOE reverifications that led to new rate, 25% more cost effective for all its clients
And, most recently, Maria was able to reduce the cost of ordering credit reports by releasing that process back to LoanLogics, enabling EMM Loans to save a significant amount on each order.
All examples of a true partnership!
"The LoanBeam tool has provided the efficiency and accuracy benefits we wanted for self-employed borrower income calculations. To ensure its consistent use, we wrote it directly into our policies!"
Download Logix FCU Case Study
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