Alight Mortgage Lending
1020 Suncast Lane, Suite 101
El Dorado Hills, CA 95762
Mortgage lending requires quick reactions to marketplace events, which means lenders need dynamic, real-time scenario analysis to optimize their financial performance. But too often, small or mid-tier lenders use a general ledger system or Excel spreadsheet to generate static, once-a-year forecasting that leaves them unable to adjust to rate fluctuations, economic trends or new opportunities.
Alight, which has been providing planning and scenario analysis to a variety of industries since 2006, is addressing these challenges with its recently developed Alight Mortgage Lending, a mortgage-specific SaaS application that delivers what lenders need.
“Our whole focus is financial optimization for the enterprise,” said Michele McGovern, CEO of Alight. “We took our platform, which we’ve vetted over many years, and made it more meaningful for the mortgage market, where the smaller firms need the same tools that larger firms use to survive and grow bigger.”
Alight Mortgage Lending helps lenders to see the effects of hiring new staff, runs best and worst-case scenarios, and helps identify new channels, McGovern said. After loading its specific data, a firm can change key metrics — like interest rates and related loan volume assumptions — to instantly see the impact on its business over time.
“Our application anticipates the types of questions lenders have and already has the mortgage lending what-if capabilities embedded into it,” she said. “They can take action immediately and then continuously record results so that over time they get better and better information.
“Horizontal planning platforms were based on annual budgeting, so once a year you put a plan together, but they can’t help businesses optimize on a daily, weekly, monthly or quarterly basis. They’re not built for that.”
Alight Mortgage Lending allows firms to compare their results side by side with their historic information as they refine assumptions, but the company plans to go even further. In response to customer demand, the company is expanding its solution to provide a comparison to benchmarks and mortgage banking economic data.
“Firms want to know how they stack up against their peers,” McGovern said. Comparing firm-specific results against the larger marketplace is a valuable indicator in decision analysis.
Because of compliance pressures, the need for better forecasting has never been greater, McGovern said. “People are trying to figure out how to do more with the same resources, and they have to have the right tools to manage that. A constant analysis process is becoming a must-have.”
Alight’s solution enables lenders to manage their critical credit line compliance, so that they can deliver monthly reporting to warehouse lenders on their balance sheet, income statement, and future cash flow projections based on loan volume assumptions.
Public companies, which have an added layer of accountability and may be under even more scrutiny from investors, can gain an even bigger benefit from Alight’s forward-looking views, she said.
“We all need financial visibility because you can’t run a business without it. If you don’t have it, the price you pay is steep.”
Accurate planning provides positive rewards as well, allowing firms to see how they can not only save money, but also how they can expand their business.
“There is only so much cost-cutting you can do,” McGovern said. “It’s important to run your business efficiently, but the reality is that firms need to constantly figure out ways to grow the top line.
“When markets turn down, the smartest businesses see it as an opportunity to acquire, merge, or start a new channel. Alight can help to figure out how to capitalize on those opportunities.”
For more information about Alight Mortgage Lending, please visit alightinc.com