Customer Profile

PMI Mortgage Insurance Co. — a wholly-owned subsidiary of The PMI Group, Inc. — is one of the country’s leading private mortgage insurers; it has more than 500 lending customers throughout the U.S. With mortgage lenders looking for more efficient underwriting resources, productivity and service have become key ingredients to achieving competitive advantage.

Before forming a relationship with Pyramid Solutions, PMI was receiving paper files from customers; these were manually reviewed, annotated, and evaluated. Underwriters were responsible for obtaining missing documentation, and manual retrieval of these items slowed the process further.

In the course of business, PMI noticed one of its customers was using an automated processing system based on Pyramid and FileNet technology. They noted that underwriters working with this lender’s system were twice as productive as those using manual processes.

The company had discovered the means to achieve its competitive advantage. Pyramid Solutions worked with them to achieve that goal.

Challenge

If PMI was to retain its competitive edge, it needed to earn customer satisfaction through fast, efficient, consistently accurate service.

PMI’s manual paper based work fl ow was preventing the company from providing the level of performance it needed to accomplish its objectives. Contract writing needed to be streamlined for faster turnaround. Random processes were making it difficult for management to determine what training might be implemented to increase speed, efficiency and quality. PMI realized it was missing out on opportunities to serve customers more effectively.

The company needed a new system that would standardize processes while implementing electronic document control with automated workflow.

The field office structure had to be revamped if PMI was going to increase operational efficiencies. Employees working in field offices around the country had difficulty getting the right answers from the right people; the communication challenge was costing PMI time, quality and accuracy due to errors, delays, and the expense of overnight delivery of files for review.

In 2004 the company decided to make a dramatic change to its operational model in order to optimize the service levels it provided mortgage lenders. That year’s slow-down in the mortgage market offered the ideal time to implement a new system without any disruption in service. The task was substantial and the timeline was tight. PMI gave Pyramid Solutions an aggressive implementation schedule of 120 days from project initiation.

Solutions

Working with Pyramid Solutions and its Loan eXpeditor™ product built on FileNet Enterprise Content Management, PMI implemented a new contract underwriting system that it internally branded “pmiPAPERLESS.” This system benefits contract underwriting operations, standardizes processes and improves quality control operations.

Implementation of a new electronic underwriting and content management system leverages Pyramid’s Loan eXpeditor (PLX) solution and FileNet Business Process Management (BPM) technology. The combined solution restructured underwriting operations, improving responsiveness and streamlining contract underwriting.

The BPM system combines electronic content management with automated workflow. It allowed PMI to centralize operations into fewer underwriting centers, reducing costs while improving service levels.

PMI employees in field offices were given better access to documentation experts. This more efficient flow of communication allows PMI to:

• Quickly identify and mitigate risk.
• Identify the need for further training.
• Ensure compliance with lender requirements.
• Eliminate the expense and delay of overnight delivery of files for review.
• Improve the accuracy of underwriting decisions.

As the solution becomes more fully implemented, the company will expand customer benefits even further.

PMI Mortgage: Update

Pyramid Solutions met the aggressive deadline; they worked with PMI to re-engineer processes, establish an electronic document repository, train all underwriting staff, and roll the processes out to eight regional offices in 120 days.

Through workflow automation and electronic document management, PMI has been able to reduce costs, increase process visibility, and set the stage for continuing operational improvements that benefit customers and stockholders alike.

The new system ensures disaster continuity and recovery for PMI and its customers; lenders can count on continuous service regardless of local conditions or events.

When hurricanes caused its Florida location to shut down, the office in Charlotte, North Carolina completed the loans being handledby the Florida office, thereby minimizing consequences for the business and customers.

Moving forward, pmiPAPERLESS will allow PMI to better apply performance metrics and ensure consistent service to its customers.

The company sees the use of Business Process Management as a continuing opportunity for differentiation and enhanced customer service.

By providing its staff with the processes, content, and connectivity to make better decisions faster, PMI will continue to optimize operations and expand the positive business impact it offers its customers.