Eliminating post-close backlogs and compliance concerns for a leading US mortgage lender

The challenge: Reputation and revenue at risk

In our grueling economic climate, mortgage lenders tend to focus their energies on loan origination: That’s where the money is. But the increased risk associated with loan repayments and sales has amplified the need for complete confidence in loan validity, while financial pressures demand faster turns on credit lines to maximize liquidity. Furthermore, the enforcement-focused regulatory environment means that mortgage providers and servicers simply can’t afford the financial and reputational risk of non-compliance.

Firstsource was approached by a leading US mortgage provider who was feeling the heat. With a backlog of trailing documents, high hold-back funds, and a huge volume of delinquent loan pools, their post-close performance was a serious concern. Regulatory reporting had slipped, custodial exceptions had increased, and their reputation among correspondent lenders was at an all-time low. The Consumer Financial Protection Bureau (CFPB) was breathing down their necks. They needed a solution, and fast.

The solution: Turbo-charged retrieval and codified compliance

Solving gritty post-closure challenges is second nature to the team at Firstsource. Armed with unparalleled tools, technologies, and talent, the client’s chosen partners hit the ground running with an assertive strategy for tackling the backlog, uncovering missing documents and releasing funds. Industry-leading reporting was baked into the solution to ensure compliance and elevate buyer confidence, and proactive processes were embedded to optimize future post-closing operations.

Firstsource leveraged its industry-leading Post Closing Platform—ILM. ILM has pre-built capabilities for intelligent document management. This AI-powered solution tracks and manages trailing documents while standardizing and automating the follow up process for missing documents. It also accelerates work by prioritizing workflow, detecting, and correcting missing or inconsistent data, and elevating more complex cases to post-close experts so they can add their human insight and initiative.

Tapping into appropriate talent across their global network, Firstsource ensured that the sun never sets on their drive to solve both immediate and ongoing issues. Adopting a tried-and-trusted hybrid model, physical documents were handled onshore while image-based reviews were processed offshore to enhance efficiency and reduce error.

Processes for reviewing recording fees, post-closing reviews, and trailing document shipping were streamlined and standardized, with all agents and correspondent lenders sending documents directly to Firstsource. Visibility was enhanced by the publication of a correspondent letter/settlement agent performance scorecard and governance was strengthened by establishing a dedicated team to address exceptions and prioritize delinquent pools.

In record time returns were maximized, robust reporting was in place, and all the essential compliance boxes were ticked.

The results: Post-close problems solved ahead of schedule

Firstsource eliminated the backlog of trailing documents within 90 days: In less than half the targeted timeframe. This achievement involved procuring and processing 32000 plus missing documents and shipping more than 68,000 trailing documents to custodians. All delinquent pools were cleared 60 days ahead of schedule and more than $3 million of hold-back funds were released.

As backlogs were retired, the delivery of go-forward loans accelerated. Post-close collateral and packages for home purchase and refinance—including government-backed, expanded credit, jumbo and VA loans—were all reviewed the same day. Firstsource ensured that 99% of original notes were sent to custodians within three days, exceeding the service level agreement (SLA) of seven days resulting in our client getting a 25 basis points leverage on their line of credit from their warehouse banks

The Firstsource approach proved as cost efficient as it was effective. The client enjoyed a 32% reduction in staffing costs, including previous vendor costs. And, importantly, they could focus their energies on high-value activities with a marked improvement in their reputation and the confidence that every aspect of their post closure was fully compliant.

In recognition of their outstanding achievements, the client centralized their entire post-closing function with Firstsource and have since extended that scope to encompass additional service lines and one-off projects.

Business impact


of trailing document backlog eliminated within 90 days


same day reviews of close and post-close packages


compliance on collateral shipping to warehouse banks

> $3

million in hold-back funds released

streamlined document management


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