A financial institution engaged in mortgage lending has embarked on a business process improvement initiative to eliminate the activities that hinder growth to ultimately improve the success rate of its mortgage business. As a benchmark for identification, the institution is keen on improving any business process that has less than a 75% success rate. The institution has appointed a business analyst (BA) to review the business transactions for the processes of origination, payments, and closures, as well as identify opportunities for improvements and recommend solutions. The BA has collected the following information over the last three months pertaining to these business processes:

All the business processes are at their maximum capacity in terms of the current number of

transactions.

Each business process has a certain number of rejects and the reasons for rejection include

documentation, verification, collateral, and funding. Funding rejects occur when the bank's customers have failed to make payment of their mortgage processing fee or mortgage closure payment. The BA has also recommended the use of documentation checklists as a solution to eliminate the documentation rejects. Which of the following business processes can be identified for the process improvement initiative?

Question

A financial institution engaged in mortgage lending has embarked on a business process improvement initiative to eliminate the activities that hinder growth to ultimately improve the success rate of its mortgage business. As a benchmark for identification, the institution is keen on improving any business process that has less than a 75% success rate. The institution has appointed a business analyst (BA) to review the business transactions for the processes of origination, payments, and closures, as well as identify opportunities for improvements and recommend solutions. The BA has collected the following information over the last three months pertaining to these business processes:

All the business processes are at their maximum capacity in terms of the current number of

transactions.

Each business process has a certain number of rejects and the reasons for rejection include

documentation, verification, collateral, and funding. Funding rejects occur when the bank's customers have failed to make payment of their mortgage processing fee or mortgage closure payment. The BA has also recommended the use of documentation checklists as a solution to eliminate the documentation rejects. Which of the following business processes can be identified for the process improvement initiative?

Accepted Answer

B. Mortgage origination process Based on the three-month transaction data collected, the mortgage origination process is the only process with a success rate below 75%, making it the sole candidate for improvement under the institution's stated criteria. The BA's scope covers origination, payments, and closures, and origination is the underperforming outlier that hinders business growth.

Answer

A. Mortgage payment process The mortgage payment process meets or exceeds the 75% success rate threshold and does not qualify for the improvement initiative under the stated benchmark.

Answer

C. Mortgage closure process The mortgage closure process also meets or exceeds the 75% threshold and is not identified as a candidate for improvement.

Answer

D. Collateral verification process Collateral verification is not one of the three business processes (origination, payments, closures) within the BA's assigned review scope.

A financial institution engaged in mortgage lending has embarked on a business process improvement initiative to eliminate the activities that hinder growth to ultimately improve the success rate of…

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