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Mortgage Technology – A Whole New World

April 20, 2018 By Kaan Etem

Mortgage technologists gathered this week at the MBA Tech18 conference to talk about the digital mortgage, mobile applications, artificial intelligence, APIs, block chain, and even drones, robots, augmented reality and the Internet of Things.  Heady stuff, and a far cry from pre-crisis days. This is not your father’s mortgage technology, and as the pace picks up, there will be a shake-out of traditional players who don’t adapt.

The theme of disruption was illustrated nicely in the two keynotes. By some miracle, Oakland A’s General Manager Billie Beane made statistics interesting and humorous, showing how he teamed with a baseball outsider to ultimately revolutionize baseball. Quicken Loans’ Dan Gilbert and Bill Emerson were equally entertaining in their keynote, as they bantered about how Rocket Mortgage came to disrupt the mortgage landscape. Speaker presentations are available to MBA members here.

With loan origination costs now up to $8,500 per loan, cost reduction through process automation has everyone’s attention. The cool technology is coming but until then, most organizations can pick the low-hanging fruit by automating manual processes, according to several speakers. Paper-based processes, error-prone data entry into silo-ed systems (requiring redundant re-entry), triple checking of work, and many things involving Excel can be streamlined without new technology. We have some ideas about this in our earlier post, in case you haven’t explored them yet. Look for more posts soon covering some interesting ways to think about using technology effectively in your organization.

Filed Under: Cogent QC Systems, Mortgage Industry, Mortgage Quality Control, Mortgage Technology, Statistics, Uncategorized

Calculate, Streamline and Automate

April 20, 2018 By Kaan Etem

 

Technology is rapidly transforming mortgage banking. If you went to the MBA Tech18 conference, you saw some of the companies leading the charge. But with enterprise software, change can be slow to arrive. What can you do right now to boost productivity, streamline processes and automate workflows?

How about optimizing your sampling? Try our statistical sample size calculator and some of our white papers on leveraging statistics. You might get more done with less work. If you’d like to discuss how, contact us.

And while we automate client processes by leveraging Cogent QC Systems tech tools, you may find that revisiting the manual steps in your workflow will be fruitful, especially if that workflow has not changed in years.

Ultimately, when you’re ready for an adaptable workflow technology for your quality, compliance and risk management, let us know. We’d love to show you the most feature-rich, most customizable system available.

Filed Under: Automation, Business Process, Mortgage Quality Control, Statistical Sampling, Statistics Tagged With: automation

Statistical Sample Size Calculator

March 29, 2018 By Kaan Etem

Our standard statistical sample size calculator is now available as a free resource online. If you haven’t seen it yet, we encourage you to try it.

If you need help, check out the guides and white papers on our Resources page.

And if you have any feedback about how to improve the calculator, let us know. We’re planning an upgrade and we need your input.

Thanks for visiting!

After a population count of about 5,000 units, the number of units to be sampled for any given defect rate flattens out – a major benefit of using statistical sample selection.

 

The Cogent Team

Filed Under: Mortgage Quality Control, Statistical Sampling, Statistics, Uncategorized Tagged With: Cogent QC Systems, statistical sampling

How Not to Be Fooled by Odds

October 15, 2014 By Kaan Etem

The New York Times ran an article recently titled “How Not to Be Fooled by Odds” in which the author defines what is meant by a statement such as “the odds of a Republican takeover of the Senate is about 74%.”  Stating that “there really is a difference between saying something will almost certainly happen and saying that it is more likely to happen than not,” the author goes on to explain what is and is not meant by the statement.  Concluding that “…a prediction that puts a 74 percent chance on an outcome should be “wrong” about 26 percent of the time,” he presents a list of situations that occur about 26% of the time, including:

  • The odds that a National Football League defense prevents a first down on third-and-one.
  • The percentage of full-time graduate students in electrical engineering in this country who are American citizens
  • The percentage of mothers with children under 18 who stay home with their children
  • The share of Americans who live in California, Texas or New York

rain-bowIn the same way, we need to be careful about what is actually being asserted by other statistics.  For example, in the third year of California’s drought, we are quite focused on rain.  So what is meant by the statement “There is a 40% chance of rain” (technically, the PoP or ‘Probability of Precipitation’)?  Consulting the National Weather Service, we find the following:

Mathematically, PoP is defined as follows:

PoP = C x A where “C” = the confidence that precipitation will occur somewhere in the forecast area, and where “A” = the percent of the area that will receive measureable precipitation, if it occurs at all.

So… in the case of the forecast above, if the forecaster knows precipitation is sure to occur ( confidence is 100% ), he/she is expressing how much of the area will receive measurable rain. ( PoP = “C” x “A” or “1” times “.4” which equals .4 or 40%.)

But, most of the time, the forecaster is expressing a combination of degree of confidence and areal coverage. If the forecaster is only 50% sure that precipitation will occur, and expects that, if it does occur,it will produce measurable rain over about 80 percent of the area, the PoP (chance of rain) is 40%. ( PoP = .5 x .8 which equals .4 or 40%. )

In either event, the correct way to interpret the forecast is: there is a 40 percent chance that rain will occur at any given point in the area.

As you present your quality control findings to others, be sure that everyone understands what they mean.  A clear definition of your terms at the beginning or end of any report is a good first step.

Filed Under: Statistics, Uncategorized

“Quality Control and the Bottom Line” article by Cogent in Secondary Marketing Executive magazine

February 3, 2014 By Kaan Etem

Quality Control and the Bottom Line
Quality Control and the Bottom Line

Secondary Marketing Executive magazine has just published in its February issue an article penned by Cogent SVP Kaan Etem on “Quality Control and the Bottom Line.”  The article summarizes much of Cogent’s thinking about efficient and effective quality control, its potential impact on the bottom line, and related commentary on some of the new rules being introduced by Fannie, Freddie, and HUD.  We hope it’s useful.  Let us know what you think.

Filed Under: Business Process, CFPB Testing, Cogent, FHLMC, FNMA, Loan Quality, Mortgage Compliance, Mortgage Industry, Mortgage Servicing, Mortgage Technology, Risk Management, Servicing Management, Statistical Sampling, Statistics, Uncategorized

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