Consulting-Lending
SCS combines process and progress to help Vision Bank build a bright future
When Oklahoma-based Vision Bank began to see their hard work and planning realized in increased growth, they wisely understood it was a good time to make sure they were building on a strong foundation.
“They recognized that they were growing and needed to have the infrastructure and policies to support that growth,” said Bill Eavenson, Sheshunoff Consulting + Solutions Engagement Manager. “Additionally, there was some lack of consistency with reporting and in how work was being processed. Failure to get control over these issues could have resulted in problems down the line that might have put the bank at risk.”
Because Vision Bank branches are somewhat spread out, including an LPO in Sherman, Tex., operations had always been decentralized. The bank has a heavy focus on commercial and mortgage lending, but didn’t have a true loan servicing department. Responsibilities were heavily concentrated in the hands of a few people, even while bank functions were spread out among various branches, regions and locations. “They needed to achieve more consistency in loan servicing, and needed to provide more definition to their policies,” Eavenson continues.
Having used a variety of services from Sheshunoff—from consulting and software to its Affiliation Program—Vision Bank knew they could count on SCS to be a true partner in achieving these goals.
“Through this process SCS has been diligent in getting answers and developing options,” said Steve Bagwell, Vision Bank EVP/Chief Lending Officer. “SCS consultants have exercised great patience in some of our redundant questions and lack of progress at times in getting our act together. They have a great way of telling us what we need to do while making it seem like we came up with the idea.”
The first step in helping Vision Bank realize its potential was putting together an Action Team and performing a full evaluation of all the bank’s lending and credit departments and processes.
“We go from soup to nuts through everything a bank is doing,” Eavenson said. “For instance, we’ll start with commercial lending and walk through every process, policy, form and software application involved in originating a loan, from closing through servicing. Then we do the same for consumer and mortgage lending. The intent is to come up with a standard method of operating along with recommendations that we all feel we can work with, while still trying to take advantage of best practices we see in the industry.”
Through this process, the Action Teams developed more than 150 recommendations, along with solutions that would centralize functions, expand capabilities and improve accountability, including:
- Designing a central document preparation and Loan Servicing Department
- Reconfiguring the Loan Administration Committee
- Revising loan policy and providing more specifics
- Purchasing additional software for spread application and exception reporting
- Transferring collections/repossession/foreclosure activities for mortgage and consumer loans to a central department
- Reconfiguring the Mortgage Department to include dedicated loan originators in key regions and centralized mortgage loan processing
“SCS has led us through the process … of identifying issues and developing solutions to increase efficiency and productivity and reduce expenses,” Bagwell said. “They have provided value to us in clarifying or validating some of the things we thought we needed to do but weren’t sure the best way to do them.”
One of the largest pieces of the puzzle was putting together the new Loan Servicing Department.
“This was a huge undertaking,” Eavenson said. “From finding space to bringing people on board to transitioning work—planning required a lot of time and energy so we could ensure we didn’t do ourselves damage trying to put the department together too quickly. Some things are still in the process of being implemented.”
In addition to building a Loan Servicing Department and centralizing document preparation, the team also began to centralize consumer and mortgage loan collections.
“In doing so, we permitted more consistent follow-up and leveraged existing software to track collection activity and contacts,” Eavenson said.
Critical to the success of a project this size was SCS’s commitment to the planning process, along with developing a strong model and strategy for implementation.
“The key is to make sure that you have properly planned for each step and that you know which measuring and monitoring steps to take along the way,” Eavenson said.
For example, SCS consultants continue to hold monthly telephone meetings to get updates and provide troubleshooting going forward. While most of the policy changes have been approved and are on-track, others will take time to get into place. For Vision Bank, knowing that SCS partners with its clients from start to finish means they can rest assured they’ll achieve the results they want.
“The use of staffing models and recommendations will permit the bank to hold down any non-interest expense, have a more objective way to measure required personnel, and have more clearly defined policies to eliminate uncertainty using best practices that will improve their business.”
In the end, SCS’s commitment and foresight built a strategy Vision Bank can grow on.
“I have found SCS to be very capable and knowledgeable,” Bagwell said. “I have greatly enjoyed working with the consultants and look forward to our continued relationship as we move to implement the recommendations. I would be happy to recommend SCS to others.”