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. Assuming the BA's recommendation to be true, what will be the new success rate of the mortgage closure process?

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. Assuming the BA's recommendation to be true, what will be the new success rate of the mortgage closure process?

Accepted Answer

C. 10% A value of 10% reflects the specific quantitative metric - such as a failure, error, or rework rate - extracted from the BA's data collection for the origination process. This figure directly supports the analytical finding that the process is operating below acceptable performance standards and justifies prioritizing it for improvement.

Answer

A. 90% 90% would indicate a high-performing process well above the 75% threshold, which would not trigger the improvement initiative.

Answer

B. 85% 85% exceeds the 75% benchmark and would not qualify a process for remediation under the institution's criteria.

Answer

D. 20% 20% does not correspond to the metric derived from the collected transaction data for the process in 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 i

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