Gravicore enables game-changing borrower payment insights

About the Client

Our client is a real estate and finance technology growth startup offering an end-to-end platform for real estate entrepreneurs and investors that includes both financing and investment management tools. Its 93% borrower retention rate explains why it has become the industry leader and received multiple rounds of venture capital in the 5+ years since its launch.

The Challenge

Data management overhead and complexities were limiting the value our customer could generate from its loan servicing and monetary transaction data.

Servicing, capital markets and risk departments were having challenges in getting rapid and reliable reporting on monetary transactions and loan performance to satisfy internal and counterparty requirements.  Rapid growth in loan volume, product lines, channels and counterparty data sources had injected complexity and fragmentation into our customer’s data pipeline and reporting.  For each reporting cycle, significant effort and resourcing was required to manually unify, transform and QA data so it could be utilized for analysis and reporting.

Other data and technical experts had tried unsuccessfully to solve this problem for over 6 months.

Gravicore’s Solution

Gravicore, an AWS Select Consulting partner and recognized leader in solving data management and data intelligence problems for real estate finance firms, is accustomed to rapidly tackling difficult data challenges. With industry subject-matter experts and data teams with extensive experience working with lending and servicing data, Gravicore’s consultants bypass the expensive domain learning curve and can provide rapidly deployable solutions in record time.

For this customer, within 30 days, Gravicore’s highly experienced accelerator team created a data pipeline that unified and normalized data sources from multiple loan servicers, payment processors and accounting systems. Within 90 days the data pipeline was fully automated with on-demand business intelligence reports in production for risk management and counterparty reporting.  Finally the team enabled the democratization of the data for other business units and finished the effort under budget.

Outcomes and Benefits

Efficiency Gains Realized

• Reduced by 90% the time needed for servicing ops to verify and report the status and timing of each loan’s monetary transactions and determine loan delinquency status and performance.
• Brought real-time visibility to how our customer’s entire portfolio was structured and performing by unifying the different streams of transaction and servicing data.
• Eliminated multiple calls to the same customer by providing the ability to view all of a borrower’s loans from a single source.
• Reduced the manual calculations for accounting, finance and servicing to determine key measures on out-of-the-box (i.e., tranched) loans.

New Insights Made Possible

• Improved identification and management of highest-risk loan populations and added clarity to assess portfolio performance
• Expanded depth and access of real-time loan transaction data to other users and departments to improve processes
  • Improved underwriters’ visibility into borrower performance.
  • Enabled sales team to make data-driven improvements to qualification processes
  • Enabled asset management team to anticipate and proactively work with servicing to help borrowers with non-performing loans
  • Provided trusted historical performance reporting
  • Enabled dimensional analysis by investor, loan type, vintage, etc.

Enabling Innovation

• Provided data for future investor self-service capabilities
• Enabled streamlined payoff statement creation and reconciliations
• Enabled use of data visualizations as marketing tools to attract new investors
• Improved identification and management of highest-risk loan populations and added clarity to assess portfolio performance