Who:
Stockton Mortgage Company, Frankfurt, Ky.
Stockton Mortgage is a full-service, retail and purchase-oriented lender, serving 13 offices across Kentucky, Indiana and Ohio. Stockton Mortgage is a Fannie Mae seller and servicer.
When:
Docutech customer since 2003.
What:
Stockton Mortgage has originated compliant loans for more than 10 years while continuing to expand their loan portfolio and leverage existing resources to generate an average loan volume of $300 million a year. The lender implemented Docutech’s product suite to maintain compliance in the secondary market, and ensure quality checks throughout the multiple phases of loan origination.
The Industry Challenge:
The mortgage industry constantly undergoes compliance and regulatory reform. As the dust settled from the most recent downturn in the mortgage market, small to mid-sized lenders experienced difficulty maintaining the new compliance standards imposed by the Consumer Financial Protection Bureau (CFPB). As regulations continue to evolve, compliance remains a key concern for lenders, and experts predict challenges to increase as 2015’s disclosure reform approaches.
Regardless of the size of an institution, managing compliance is a complex issue. Some larger institutions are often more equipped to handle the newly mandated guidelines, but many lenders, like Stockton Mortgage, face the challenge of altering their processes to uphold standards without sacrificing profit margin or staff hours.
For Stockton Mortgage, this meant evaluating their existing vendors and determining which ones could best help them navigate the compliance landscape. As the company evaluated their options for the 2015 changes, they looked back at a decade of history with Docutech. Rather than selecting to invest in additional staff and new technology products, Stockton Mortgage opted to capitalize on Docutech’s ConformX to ensure that the company continues to adhere to the evolving CFPB requirements.
The Solution:
Stockton originally began working with Docutech in 2003 when they transitioned into a correspondent lender business model. The company needed to generate compliant documents and hard-code specific fields to meet secondary market requirements. When Stockton Mortgage was vetting out loan origination software (LOS) platforms, it became clear that Docutech provided the best solution for compliance documents in regards to integrating new products into their existing LOS provider.
Stockton Mortgage also found that Docutech’s product suite was an affordable selection that met the lender’s specific needs. Additionally, the products’ data transfer capabilities were compatible with what the company was looking to leverage to solve business challenges.
Over the years, Stockton continually evaluated ConformX’s ability to generate accurate, compliance documents quickly and painlessly. The lender found that other providers were cumbersome, and they cited Docutech’s products as user friendly and compliant with the CFPB’s evolving regulations. “Docutech’s ability to produce documents that are reliably in compliance with the CFPB has contributed to the success we have experienced through the years. Docutech earns our business every day.” said David Stockton, president of Stockton Mortgage.
Throughout the duration of the partnership, Stockton Mortgage leveraged Docutech’s product suite to increase efficiency and consolidate resources to ensure that the company upheld compliance through the entire loan origination process and all phases of data transfer.
“We have been very fortunate in that we have not experienced hiccups associated with compliance. The bottom line for us was that Docutech has the best solution that integrated with our existing LOS,” said David Stockton president of Stockton Mortgage. “The data transfer capabilities exceeded our expectations. For us, it came down to a format that we could install on our local work stations back in 2003. Docutech is extremely reliable and we can always depend on them to draw initial disclosure and closing documents effectively.”
Currently, Stockton Mortgage serves more than 13 offices and generates an average loan volume of $300 million annually. Since choosing to partner with Docutech, Stockton Mortgage has maintained compliance for more than 10 years. Furthermore, the company has had the ability to uphold industry standards and stay ahead of the curve in regards to regulatory change.
The Results:
Since partnering with Docutech in 2003, Stockton Mortgage has increased profitability and maintained compliance, not an easy task Additionally, the scalability of Docutech’s product suite has allowed the lender to increase business capabilities that are accredited to the ease of updating and receiving of CFPB regulations, overall time savings and Docutech’s responsive customer service.
Providing consistent communication for Docutech has enabled Stockton Mortgage to guarantee the accuracy and compliance of all documents. Furthermore, Docutech’s products have reduced the amount of time spent preventing compliance errors within the system and guaranteeing that all loan documents are current and in compliance prior to submission.
The lender has experienced significant cost savings and sustained profitability through its partnership with Docutech. Moving into 2015, Stockton Mortgage predicts a smooth transition in regards to adjusting to the impending CFPB changes accompanied with the disclosure reform. Additionally, the company expects the reform to have minimal effect on the lender’s ability to maintain high levels of compliance.
“In today’s regulatory environment, compliance is a hot ticket item that is becoming increasingly more relevant. The reform will create headaches for lenders, and it’s important that businesses adhere to these changes appropriately. ” said Scott K. Stucky, chief strategy officer of Docutech. “We are pleased knowing that Stockton Mortgage has upheld their high standards through the years by leveraging our products to increase profitability and maintain compliance. Stockton’s success is a first-hand glimpse of how Docutech’s products can help strengthen business processes and consolidate resources though the years.”
About Docutech
Since 1991, Docutech Corp. has provided outstanding compliance services and documentation technology for the mortgage industry. Docutech’s software interfaces with leading loan origination systems (LOS) and enables mortgage professionals to generate documents locally. Docutech manages and secures all information needed for a loan, guaranteeing accuracy, security and compliance. For more information visit the company’s website at www.Docutechcorp.com.
About Stockton Mortgage
Founded in 2001, Stockton Mortgage Corporation is a full service mortgage bank licensed in Kentucky, Indiana, and Ohio. Stockton Mortgage is an agency direct seller/servicer and is approved by all the major investors, in addition to the following: Federal Housing Administration, Veterans Administration, U.S Department of Agriculture, Kentucky Housing Corporation and Indiana Housing Corporation. With 13 branch locations and over 70 employees, Stockton Mortgage offers a full suite of loan programs, along with local processing, local underwriting, and in-house technology support.