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Design And Implementation Of Software For Mortgage Banking

(The study of National Board for Technical Education (NBTE))

7 Chapters
|
88 Pages
|
8,544 Words

The design and implementation of software for mortgage banking involves the development of robust, user-friendly applications tailored to meet the specific needs of mortgage lenders and borrowers. This process encompasses various stages, including requirements gathering, system architecture design, database modeling, user interface development, and backend programming. Key functionalities of such software typically include mortgage application processing, credit scoring, document management, loan origination, underwriting, risk assessment, payment processing, and regulatory compliance monitoring. Advanced features may also incorporate automated decision-making algorithms, integration with external data sources for credit checks and property valuation, as well as secure communication channels for sensitive financial information exchange. Security measures such as encryption, authentication, and audit trails are integral components to safeguard data integrity and privacy. Moreover, scalability and interoperability are essential considerations to ensure seamless integration with existing banking systems and adaptability to evolving industry standards and regulatory requirements. By leveraging cutting-edge technologies like cloud computing, artificial intelligence, and machine learning, mortgage banking software can streamline operations, enhance customer experience, mitigate risks, and optimize the lending process for improved efficiency and competitiveness in the dynamic financial services landscape.

ABSTRACT

This project work which is conducted to meet the stipulation of the National Board for Technical Education (NBTE) for the award of National Diploma in computer science deals with the application of computer in Mortgage Banking operations. It addresses using a sophisticated computer software in handling the existing manual record system chapter one introduces the topic with sub-headings like: Background of the study, statement of the problem, purpose of the study, objective of the study scope of the problem and Definition terms
Chapter two deals with the related write-ups of the topic a with related argument made by pertinent individuals and group.
Chapter three describes and analyses the current system as well as the facts finding methods used.
Chapter four deals with the design of the new system it describes both the input and output specification of the system.
Chapter five deals with the implementation of the new system. It also specifies system conversion procedure.
Chapter six provides an overview documentation. It also animates the program details.

TABLE OF CONTENT

Title page
Certification
Dedication
Acknowledgement
Abstract
Table of contents

CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Objectives of the study
1.5 Scope of the problem
1.6 Definition of terms

CHAPTER TWO
2.0 Literature Review

CHAPTER THREE
3,0 Overview of the existing system
3.1 Description and analysis of the existing system
3.2 Method of data collection
3.2.1 Interview method
3.2.2 Reference to written text
3.3 Input Analysis
3.4 Process Analysis
3.5 Output Analysis
3.6 Problem of the existing system
3.7 Justification for the new system

CHAPTER FOUR
4.0 Description and Implementation of the New Existing System
4.1 Output specification and description.
4.2 Input specification and description
4.3 File design
4.4 Procedure chart
4.5 System flowchart
4.6 System requirement

CHAPTER FIVE
5.0 Implementation
5.1 Program description
5.2 Program flowchart
5.3 Pseudopodia
5.4 Source listing
5.5 Test ran

CHAPTER SIX
6.0 Documentations

CHAPTER SEVEN
7.0 Recommendation and Conclusion
Reference
Appendix

CHAPTER ONE

1.0 INTRODUCTION
In our society today the use of computer especially in banking sector of the economy have been so eminent. Nearly all banking or financial institutions have computerized their banking operation. The major reason or the fact has been using computer to manage the flow of information within the institution. This is lightly necessary since the survival of any institution including the financial institution like commercial Banks, mortgage Banks Insurance computer etc. depend much on a viable information system. An information system that enables the users to track necessary records and transaction related to the institution in a possible minimum time. Apart from using computer in ensuring a viable information system (IS), error prone information by extensive mammal data mentioned and many others to perform the entire task mentioned and many others have been enhanced by the application software. Application software are programs that direct the performance of a particular use or application of computers and computer networks to meet the information processing needs of end user. This is to say without the application software a computing system I incapable of performing the user task. This is often referred to as computerization. The following section of the project report present the feasibility of computerizing the operation of mortgage banking.

1.1 BACKGROUND OF THE STUDY
Depository institutions have traditionary originated residential mortgage louns to hold in their loan portfolios and mortgage banking is a natural extension of this traditional origination process. Although it can include loan origination mortgage banking goes beyond this basic activity. A bank that only originates and holds mortgage loans in its loans in its loan portfolio has not engaged in mortgage banking as defined here.
Mortgage banking generally involves originates, purchases and sales through the secondary mortgage market. A mortgage bank can retain or sell loans it originates and retain or sell the servicing on those loans. Through mortgage banking national banks can and do participate in any or a combination of these activities Banks can also participate in mortgage banking activities by purchasing rather than originating loans.
The mortgage banking industry is highly completive and involves many firms and intense competition. Firms engaged in mortgage banking vary in size from very small local firms to exceptionally large, nationwide operations commercial banks and their subsidiaries and affiliates make up a large and growing proportion of the mortgage banking industry.
Mortgage banking activities generate fee income and provide cross-selling opportunities that enhance a bank’s retail banking franchise. The general shift from traditional lending to mortgage banking activities has take place in the context of a more recent general shift by commercial banks from interest income activates to non-interest, fee generating activities.

1.2 STATEMENT OF PROBLEM
The larger challenge facing lending institutions today is the is the lack of system and processes that track, and analysis data effectively. The loan origination process generates massive amounts of data that needs to be managed by the asset management finance and servicing functions, key management reporting and data analysis capabilities are critical in dealing with issues and quantifying trends in delinquency rates and tracking of compliance metrics-basically the bulk of mortgage banking operations. In addition, these functional areas are responsible for meeting the disclosure requirements of investors, regulatory and rating agencies.
In addition many banks are still performing many processes semi-manually. For example to produce data for monthly servicing valuations, hedging, tax, management reporting and forecasting, banks extract data from multiple systems often residing in different locations or individual PCS After this laborious process the data is manically consolidated in spreadsheets resulting in another significant resource and time drain, along with the potential for human error. By the snapshot view that is weeks bland and prone to errors. Overall these inefficiencies increase the cost of operations, risk and potential loss to the mortgage company

1.3 PURPOSE OF STUDY
The purpose of this study is to evaluate the present manual or semi-manual system of mortgage banking operations and develop an application software to perform those manual task or data processing and analyses using computer.

1.4 OBJECTIVES OF STUDY
The objective of this study is to provide an information technological option the use of computer in handling the mortgage loan origination and it’s servicing in mortgage banking operations, to delver an effective and efficient data storage, retrieval processing and reporting.

1.5 SCOPE OF THE PROBLEM
The scope of the problem centered on the difficulty and time constraint with the manual system in producing the required report associated with the loan origination and servicing in the mortgage banking operations.

1.6 DEFINITION OF TERMS

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MORE DESCRIPTION:

Software For Mortgage Banking:

Mortgage banking involves various processes and tasks related to originating, processing, underwriting, servicing, and managing mortgage loans. To efficiently manage these operations, mortgage banks often rely on specialized software solutions. Here are some common types of software used in the mortgage banking industry:

  1. Loan Origination Software (LOS):
    • LOS software helps mortgage lenders and brokers automate the loan application and approval process. It typically includes features for document management, credit checks, income verification, and communication with borrowers.
  2. Customer Relationship Management (CRM) Software:
    • CRM software allows mortgage banks to manage customer relationships, track leads, and streamline communication with borrowers and prospects.
  3. Loan Servicing Software:
    • Loan servicing software is used to manage existing mortgage portfolios, including payment processing, escrow management, and handling customer inquiries.
  4. Underwriting Software:
    • Underwriting software assists in the evaluation of loan applications, assessing risk factors, and determining whether to approve or decline a mortgage application.
  5. Compliance and Regulatory Software:
    • This software helps mortgage banks ensure that their operations comply with relevant federal and state regulations. It includes features for tracking changes in regulations, managing compliance documentation, and conducting audits.
  6. Document Management and Imaging Software:
    • Mortgage banks deal with a large volume of documents. Document management software helps organize, store, and retrieve important loan documents efficiently.
  7. Risk Assessment and Analytics Software:
    • Mortgage banks use analytics software to assess credit risk, market trends, and the performance of their loan portfolios. This information is critical for making informed lending decisions.
  8. Accounting and Financial Management Software:
    • Software for accounting and financial management helps mortgage banks manage their financial transactions, handle payroll, and generate financial reports.
  9. Title and Escrow Software:
    • Title and escrow software is used to manage the title search, title insurance, and escrow processes in real estate transactions.
  10. Valuation and Appraisal Software:
    • Valuation and appraisal software helps in property appraisal and valuation, which is an essential part of the mortgage approval process.
  11. Workflow Automation Software:
    • Workflow automation tools streamline repetitive tasks and processes within a mortgage bank, improving efficiency and reducing errors.
  12. Mobile Apps and Online Portals:
    • Many mortgage banks offer mobile apps and online portals for borrowers to submit applications, upload documents, and track the status of their loans.

It’s essential for mortgage banking software to be compliant with industry regulations and to meet the specific needs of the institution. Mortgage banks often customize or integrate these software solutions to create a seamless workflow that suits their operations. Additionally, as technology evolves, mortgage banking software continues to advance with features like AI-driven underwriting and enhanced data analytics. Choosing the right software depends on the size, scope, and goals of the mortgage banking institution.