Citi Mortgage | Technology

December 2013

KTM Kofax Transformation Module

Table of Contents
1. Business Challenge & Goals

2. Solution KTM

3. Future Opportunities

11

4. Appendix

11

KTM Financials and Program Successes

12

Business Challenge and Goal

Business Challenge:
The current business environment of processing imaged documents requires manual execution to
identify the document type, index the doc with the appropriate loan number and extract all
required data from the actual image. This manual process is both time consuming and expensive
for both the front and back office. In addition, the quality of this process is lessened with the
increased potential for human error.

Business Goal:
A systemic error free solution is needed to reduce operational costs, improve overall efficiencies and
eliminate associated errors for image capture of mortgage loan documents. The following manually
intensive processes must be reduced in order to meet business goals:

Manual Doc Classification - Docs manually identified

Manual Doc Separation Docs separated into 25 document type buckets

Manual Doc Index Index to the appropriate loan number

Manual Data Entry User input of data from the loan images into Business Applications

Business Challenge
Manual Classification and Indexing without KTM

Manual document sorting pre-scan

Manual Classification - 200,000+ images per day

Manual Doc Separation into 25 buckets

Manual Indexing

Manual Classification and Separation

25 Buckets

E-mail
Web
Note

Appraisal

HUD

Misc

Kofax
10

Manual
Index

Scan

Fax

Production Manual Classification and Indexing Timings

(Transaction Services Imaging Ops)
Retail
Loan
File

HH:MM
3

00:05:30

Corr
Loan
File

00:26:00

Payoff
1st

00:03:30

Payoff
2nd

00:01:41

Default
HAM

Default
MOD

00:02:00

00:03:04

Business Challenge
Manual Data Entry and Document Comparisons with Document Images
Underwriting

Closing

Funding

Post Closing

Default

HUD
Appraisal
GFE
1040

Manual
Data Entry

Truth
W2 in Lending

Manual Document
Analysis
Comparing Documents

Business Opportunities
Costs
Customer Service
Capacity
Quality
Security

Errors

Lost documents
Risk

Control
Image-enabled workflow is not enough!
............Business processes need Image Data enabled workflow
C-level Executive
I want all our processes
to be streamlined and
automate as much as
possible. We need to be
more efficient and
differentiate by
providing better
service
5

Loan Processing
Manager
I want a secure,
predictable and easy to
manage process where
my staff focus on
serving our customers,
not handling
documents

Solution Kofax Transformation Module (KTM)

Deploy Kofax Transformation Module (KTM) to reduce the
number of existing manual imaging processes, resource
labor, the amount of data entry errors and incorrect indexing
of the mortgage loan documents

Imaging & Document Management Conceptual View

Retail
Channel

Correspondent
Channel

Default
&
Payoffs

KTM Provides the following functionality:

Systemic classification of documents by content

Document
Scan & Fax

Web Upload
& Fax

Systemic separation of multi-page documents for

Kofax
KTM

Systemic indexing of documents

Systemic capture of data from documents to be utilized by
future projects and Costs/Benefits will be associated with those
individual projects.

FileNet

Document
Scan & Fax

Solution KTM Driving to the Benefits

Faster

Cheaper

Increases Speed to QA Images

80+% Classification and
Extraction Accuracy

Reduce overall business

costs and improve productivity

Reduces manual labor and

research time to identify index
data for each document
Improved predictability to
meet SLAs

Imaging Operations costs

reduced by 38%
Increased Image processing
Capacity Process more
Images faster, Cost per image
reduced

Enables systemic data entry

and automation for Cosmos

Better
Improves accuracy of
Document Indexing 99%
Quality Control
Improved Data Quality
Reduction of Data Key errors
Intelligently defined Doc Types
Integration with BPM and
Workflow Suites to automate
business processes.
Improved Scalability

Productivity

Financial

Compliance

Solution KTM Intelligent Classification

KTM Intelligent classification:

Identifies 255 Unique Doc Types

50+ million images processed to date

Accuracy over 80%

Data & Images Available for Cosmos, Default, etc.

Auto Index to Correct Loan Number

KTM Classification

E-mail
Web

KTM

Retail Loan

Correspondent

Trailing

Default

Files

Loan Files

Docs

Docs

Loan
Data

KTM
DB

Cosmos

KTM Auto Index

Scan
Images
FileNet

Fax
Mobile

Note

GFE Application

HUD

W2

Tax
Return

4056T

HAM

Separation
Production Classification and Indexing Timings with KTM
(Transaction Services Imaging Ops)
Overall Timings for Offshore improved by 40%

2013 Target Productivity Gain = 39%;

HH:MM

HAM

MOD

Payoff
1st

Payoff
2nd

Retail
Online

Corr
Online

Pre-KTM

00:02:00

00:03:04

00:03:30

00:01:41

00:05:30

00:26:00

KTM Target

00:01:30

00:00:35

00:03:00

00:00:45

00:04:30

00:18:00

KTM Avg

00:01:08

00:00:52

00:03:29

00:00:47

00:03:48

00:22:00

Actual Productivity Gain = 38%

8

**Retail Online is 65% of volume

Solution Systemic Data Extraction

Configure - Data extraction built for 52 documents and 992 fields. ie. Note, HUD, Tax Returns, W2,
etc.

Extract - Powerful extraction technology locates and extracts data from document
Store - Extracted Data is stored in the KTM Database by Loan # and Doc Type
Workflow - Data is available for Cosmos and other applications to drive workflow activities
Streamline - Reduce manual data entry of document data into Cosmos and manual data
comparisons

Future Opportunities with KTM

Cosmos KTM extracted data integration for workflow activities

Default Docs - KTM Classification for additional Default Docs Loss Mitigation, SPOC

Servicing Automation KTM extracted data integration for workflow activities

Email Import Import emails from customers into Kofax / KTM

Mobile KTM integration with Mobile applications to capture documents from customers

CitiMortgage Mobile Application

for Customer On-boarding
Provide the customer a mobile solution to check the
status of the loan, review documents required for
submission, and capture / transmit documents
required for loan processing (ie. W2, TaxReturns,
drivers license or paycheck stubs, etc.)
This solution will enable CitiMortgage to:

10

Improve the customer on-boarding experience

Reduce time to approve and close the loan

Reduce time of receipt of images

Improve image quality by reducing fax volume

currently 1.5MM pages/month 10,000 to
13,000 faxes per day

Appendix

KTM Program Successes & Financials

($M)

(In $M)
July 11 to Sept 13

Project Spend
Benefits Projections
(Based on Sept 13
Data)

Benefits Actuals (YTD)

(As of July 13)

2013

2014

2015

2016

2017

$3,730

Total
$3,730

Cost Save - Ops

$324

$973

$973

$973

$973

$4,216

Cost Save - TS

$237

$207

$207

$207

$207

$1,065

Total Projections

$561

$1180

$1180

$1180

$1180

$5,281

Cost Save - Ops

$0

Cost Save TS

$138

Total Actuals

$138

Non Financial Benefits

Enhanced Productivity in processing and Shared Services

functions
Improved NPS
Improved Data Quality
Leveraging Data Extraction functionality and benefits are
deferred to future projects

Program Successes

5 Yr Benefits were targeted at $5.22 MM (as of July 2012), current 5 Yr Target Benefit is $ 5.28 MM (as of
Sept 2013):

Retail Closing Packages, Default Docs, Payoffs and Correspondent Closing Packages & Fax are 100% in
production
255 doc types compared to Kofax 8s 25 buckets
Achieved 80%+ Classification & Separation Accuracy

Data Extraction functionality completed

12

52 unique document types and 992 data fields

Functionality is ready for future projects (Cosmos, Default)

Achieving 75% extraction accuracy

Reduced Imaging Timings and provided financial benefits