Once a mortgage application is received by the mortgage provider, and before proceeding with its assessment, the application itself needs to be checked for completeness. If the application is incomplete, it is returned to the applicant, so that they can fill out the missing information and send it back to the mortgage provider. This process is repeated until the application is found complete. The process for assessing mortgage applications is executed by four roles within the mortgage provider: a financial officer takes care of checking the applicant’s credit history; a property appraiser is responsible for appraising the property; an insurance sales representative sends the home insurance quote to the applicant if this is required. All other activities are performed by the mortgage officer who is the main point of contact with the applicant. An applicant who has decided not to combine their loan with a home insurance plan may change their mind any time before the eligibility assessment has been completed. If a request for adding an insurance plan is received during this period, the loan provider will simply update the loan application with this request. A mortgage application is approved if it passes two checks: (i) the applicant’s mortgage risk assessment, done automatically by a system, and (ii) the appraisal of the property for which the mortgage has been asked, carried out by a property appraiser. The risk assessment requires a credit history check on the applicant, which is performed by a financial officer. Once both the mortgage risk assessment and the property appraisal have been performed, a mortgage officer can assess the applicant’s eligibility. If the applicant is not eligible, the application is rejected, otherwise the acceptance pack is prepared and sent to the applicant. Once a mortgage application has been approved by the mortgage provider, an acceptance pack is prepared and sent to the customer. The acceptance pack includes a repayment schedule which the customer needs to agree upon by sending the signed documents back to the mortgage provider. The latter then verifies the repayment agreement: if the applicant disagreed with the repayment schedule, the mortgage provider cancels the application; if the applicant agreed, the mortgage provider approves the application. In either case, the process completes with the mortgage provider notifying the applicant of the application status. 

Required: 

a) Identify the actors in the above process. (2 Marks) 

b) Describe the outcomes of such a process (2 Marks) 

c) Use appropriate tools and syntax to draw the process diagram (3 Marks) 

d) Group all process activities into VA, BVA and NVA (3 Marks)

e) Taking the perspective of the customer, what performance measures can be attached to this process? (2 Marks)

f) What potential issues do you foresee this process might have? What information would you need to collect in order to analyze these issues? (4 Marks) g) What possible changes do you think could be made to this process in order to address the above issues? (2 Marks)

h) In what ways can the process be automated? (2 Mark

Answer rating: 100% (QA)

a The actors in the process are as follows 1 Applicant The individual or organization applying for the mortgage 2 Mortgage Provider The organization responsible for assessing and approvingrejecting mo... View the full answer