SOURCE: Pegasystems


October 25, 2010 09:00 ET

Pegasystems Helps Mortgage Lenders Avoid Future Buybacks

New Consumer Lending Solution Brings Intelligent Automation for Error-Free Mortgage Origination

CAMBRIDGE, MA--(Marketwire - October 25, 2010) -  Pegasystems Inc. (NASDAQ: PEGA), the leader in business process management (BPM) and a leading provider of customer relationship management (CRM) solutions, today launched a new solution that allows lenders to automatically eliminate errors and improve productivity in mortgage origination. The Consumer Lending Solution is the first commercially available multi-channel solution built expressly for loan origination that also offers advanced business process management capabilities. It introduces consistent, end-to-end quality controls that range from the point of sale through post-closing.

The new solution debuts at a time when the market need is rampant: government-backed mortgage investors Fannie Mae and Freddie Mac continue to scrutinize mortgages and require banks to re-purchase, or "buy back," thousands upon thousands of mortgages written with missing, false or inaccurate data and documentation. Analysts estimate that major lenders stand to lose as much as $180 billion, and some say it has already cost the four largest US-based lenders approximately more than $19 billion.

The Consumer Lending Solution gives lenders the ability to originate defect-free mortgages at the outset and avoid many of the reasons for triggering buy backs. The solution enables more transparency, 100-percent quality control and higher rates of automation. For example, a major, US-based lender already leveraging Pega technology for loan origination has increased productivity three-fold. 

The solution, which works with existing loan origination systems, is designed to automate the complex inner-workings of a paper-intensive process by eliminating risks that arise from manual errors, lag time and time-consuming data entry. 

Highlights / Key Product Facts:

Pegasystems' Consumer Lending Solution provides a myriad of features that dynamically support defect-free mortgage origination:

  • Process automation ensures that all documentation elements are in sync.
  • Guided processes dictate each step of the way to eliminate manual work-arounds and gaps between loan officers, loan processors and originators.
  • Powerful business rules automate cross-validation of documents and elimination of errors.

Quotes & Commentary:

Craig Focardi, Senior Research Director at TowerGroup
"The next generation of mortgage lending automation will require a BPM framework that focuses on managing the process oversight to increase productivity and create error-free loans. Many other lines of business in financial services already benefit from BPM technology and now the mortgage lending division should adopt BPM to derive the same level of benefits, compete more effectively and delivery better customer service."

Tony Young, Principal, Financial Services Industry Solutions at Pegasystems 
"Existing practices and systems have produced error-laden loans that are now being repurchased at growing rates. Lenders that do not find ways to achieve 100-percent, defect-free loans will suffer increased servicing costs and some may not survive. Quality control is of paramount concern, and Pega's solution delivers this crucial capability for mortgage lenders."

Supporting resources:

To learn more about the solution, visit:

To hear a podcast with Tony Young, visit:

About Pegasystems
Pegasystems, the leader in business process management and a leading provider of CRM solutions, helps organizations enhance customer loyalty, generate new business, and improve productivity. Our patented Build for Change® technology speeds the delivery of critical business solutions by directly capturing business objectives and eliminating manual programming. Pegasystems enables clients to quickly adapt to changing business conditions in order to outperform the competition. For more information, please visit us at

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The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.

Contact Information

  • Media Contacts:
    Brian Callahan
    (617) 866-6364

    Kim Baker
    PAN Communications
    (978) 474-1900