Case Study

HomeStreet Bank Implements FileTrail Records Management™ to Automate Tracking of Collateral Documents

Background

In 2019, HomeStreet Bank decided to implement a Treasury Vault Management System to automate tracking of collateral documents. The bank had outgrown its previous tracking tool. The executive management team wanted more transparency to be able to pinpoint exactly where collateral documents — such as notes, titles and deeds of trust – are located at any point in time.

By tracking the content of each loan file more closely, the bank would be able to quickly identify any documents that were missing information and process loans faster and more efficiently. The system would also allow the bank to more closely track the value of each loan as it is repaid, enforce security over assets, and force collection in the event that the loan falls into delinquency.

With a bank vault in Washington, as well as four standalone lending centers and dozens of branch offices in Washington, Oregon, California and Hawaii, the management team knew that it needed a robust system that would be able to remotely track loan files originating from multiple locations, including the inventory of documents associated within each loan.

Evaluation Process

HomeStreet Bank issued an RFP and reviewed responses from four vendors, and also spoke to other banks about what they were using.

One key requirement was that the bank’s new Treasury Vault Management System would need to handle a variety of workflows for each business unit. At the same time, the Treasury Vault Management System would need to allow the bank to enforce strict controls over who has access to customer information, in compliance with security and data protection regulations.

In speaking to other banks, HomeStreet Bank found that larger banks tended to use custom-developed tracking systems — a solution that would be too costly and difficult for a bank of HomeStreet’s size to maintain. Meanwhile, the smaller entities with only a single office were often using spreadsheet or simple tools that would not be able to handle the volume of information that needed to be tracked by HomeStreet Bank.

Solution

Following the evaluation, HomeStreet Bank selected FileTrail Records Management to provide the foundation of its Treasury Vault Management System. FileTrail is easily configurable to adapt to specific organizations’ needs.

In the case of HomeStreet Bank, FileTrail Records Management was configured to capture the remote loan file ID and document ID numbers at the source of origination. HomeStreet Bank has also set policies and configured workflows specific to each business unit, including commercial real estate financing, mortgage lending, and residential construction.

HomeStreet Bank found it straightforward to fit FileTrail into its new streamlined process. Each lending center can now generate and print labels upon entering the loan file into the system. The labels are attached to each file and shipped to the headquarters in Seattle, and are scanned along the way, allowing the management team to pinpoint the exact location of each document at any point in time — whether it is within the vault, with a specific department, or at the custodian.

Results to Date

Using FileTrail Records Management, HomeStreet Bank has standardized process controls across the bank, making the management of loan file documents much more efficient and transparent.

“The flexibility of FileTrail enabled us to enforce consistent controls across the bank, while supporting the requirements of each business unit. The initial rollout went smoothly and instantly gave the management team better visibility into the pipeline of new loan files and documents across all locations. When we see the process starting to slow down or identify any gaps, we’ve been able to reach out to the business unit in question to discuss the problem and provide them with the support they need,”

says Darrell Van Amen, Executive Vice President and Chief Investment Officer at HomeStreet Bank.

An additional benefit has been that the individual business units have taken greater ownership over the document tracking process, further accelerating the speed at which loan documents are processed.

“Using FileTrail has resulted in greater efficiency in tracking loan documents, but also in greater accountability. We were pleasantly surprised to see how enthusiastic the business units were to get on top of updating the status of their loan documents within the Treasury Vault Management System,”

adds Van Amen.

“FileTrail Records Management has removed the need for repetitive manual entry of information and has been very intuitive to use. We are now able to move loan collateral documents from our remote lending centers to our headquarters, in and out of the vault much more efficiently, knowing everything is tracked.

The system automatically captures a record of all activity, including any modifications made to loan collateral documents over time. HomeStreet Bank is now taking advantage of the advanced reporting capabilities within FileTrail to build new reports for each business unit and the executive management team. FileTrail Records Management provides highly customizable reporting options which allow administrators to easily add fields to reporting templates.”

Van Amen adds that any bank undertaking similar projects should develop a clear understanding of where they are transitioning from. “In our case, we were able to evolve our loan document tracking system quickly, moving from a fairly rugged process that required a lot of manual updates and chasing to a much more refined process that is more automated and has resulted in greater accuracy and accountability. FileTrail is a robust system that has been easy to adapt to our business and has a significant impact on our overall efficiency and productivity.”