Case 5.1 Answer Questions 1 and 2

for arranging a termite Inspection, a survey, a title search and CASE PROBLEM 5.1 Streamlining the Refinancing Process are encountered, the loan processor goes to the loan agert for advice. If items appear on the credit report that are not With mortgage rates at an all-time low, first National Bank has on the application or if other agencies have requested the been swamped with refinancing requests this year. To handle credit report, the customer is required to explain the discrep the increased volume, it divided the process into five distinct ancies in writing. If the explanation is acceptable, the letters stages and created departments for each stage placed in the customer's file and the file is sent electronically The process begins with a customer completing a loan to the loan agent (and sometimes the bank's board) for find application for a loan agent. The loan agent discusses the approval financing options with the customer and uses its online pre- The customer receives notification of loan approval and approval program and customer-reported data to see if the asked to call the closing agent to schedule a closing date and customer qualifies for loan approval. If the numbers work, the to lock in a loan rate if the customer has not already done to customersions a few papers to allow a credit check and goes home to wait for notification of the loan approval The closing agent requests the name of the customers The customer's electronic file is then passed on to a loan forney to forward the loan packet. The attomey is responsable processor who requests a credit check, verification of loans of mortgages from other financial institutions, an appraisal of Insurance and for preparing the closing papers. The attor the property, and employment verification. If any problems and the closing agent correspond back and forth to verify feet payment schedules, and payoff amounts The loan-servicing specialist makes sure the previous loan sped off and the new loan is set up properly. After the dos ng takes place, the bank loan payment specialist takes care of asuing payment books or setting up the automatic drafting of mortgage fees and calculating the exact monthly payments, ncluding escrow amounts. The loan payment specialist also monitors late payment of mortgages is difficult to evaluate the success or failure of the process, since the volume of refinancing requests is so much greater than has ever been before. However, customer comments solicited by the loan servicing specialist have been disturbing to management. Customer Comments: refinanced with the same bank that held my original loan, thinking erroneously that I could save time and money. You took two months longer processing my loan than the other bank would have, and the money I saved on closing costs was more than eaten up by the extra month's higher mortgage payments. I just got a call from someone at your bank claiming my mortgage payment was overdue. How can it be overdue when you draft it automatically from my checking account? . If I haven't made any additions to my house or property in the past year, you appraised it last year, and you have access to my tax assessment, why bother with another appraisal? You guys just like to pass around the business . I never know who to call for what. You have so many people working on my file. I know I've repeated the same thing to a dozen different people. . It took so long to get my loan approved that my credit report appraisal report, and termite inspection ran out. You should pay for the new reports, not me. I drove down to your office in person today to deliver the attorney's papers, and I hoped to return them with your signature and whatever else you add to the closing packet. The loan specialist said that the closing agent wouldn't get to my file until the moming of the sched. uled closing and that if she hit a snag, the closing could be postponed! I'm taking off half a day from work to at tend the closing and rescheduling" is not convenient I know you have lots of business, but I don't like being treated this way . I received a letter from one of your loan-payment spe- cialists today, along with a stack of forms to complete specifying how I want to set up my mortgage payments. I signed all these at closing don't you read your own work? I'm worried that if I fill them out again you'll with draw the payment twice from my account! 1. Create a service blueprint of the refinancing process. Why do you think the bank organized its process this way? What problems have ensued? 2. Examine the process carefully. Look at customer/provider interactions. Which steps create value for the customer? Which steps can be eliminated? Construct a new blue print showing how the overall process can be improved