Loan Origination Reference Architecture Deep Dive

Architecture Deep Dive Reference Application Pack for Loan Origination Systems Architecture Strategy Team Mike Walker

IT and business challenges
Architecture walk-through
Addressing enterprise concerns
Agenda

Goal … Unify people, process, and technology through proven technologies that reduce cost, defragment channels, and provide holistic views of the customer… ” Mike Walker 2006 “

Lending Challenges in Banking 1 of 2

Lending Challenges in Banking 2 of 2 * US Market Forecast – JupiterResearch 2005

Technology constraints limit agility
Multiple Loan Origination System (LOS) solutions that do not interoperate
Few vendors provide comprehensive technology choices
Workflows are cumbersome, not manageable
Business logic is often hard-coded
Point-to-point integration is not scalable
Technology Challenges

Logical architecture
Presentation layer
Application services layer
Lending message bus
BRE and orchestration layer
Data services layer
Architecture walk-through

Designing enterprise-class Office Business Applications (OBAs) for the financial services industry
Familiar and powerful Office clients for information consumption
Role-based extensibility
Provide rich Office components that consume and share industry standards schemas (for example, Mortgage Industry Standards Maintenance Organization (MISMO))
Goals of the Architecture 1 of 2

Automate lending business processes with Windows Workflow Foundation and BizTalk System orchestrations
Bridge the gap between disparate business capabilities across a heterogeneous banking environment
Centralized Business Rules decouple with computation logic
Scalable and robust lending platform
Goals of the Architecture 2 of 2

OBA Reference Application Pack (RAP) for Loan Origination Systems in financial services
Architecture Framework —Reusable loan architecture factory
Code Artifacts
RAP for Loan Origination Systems 1 of 3
Custom Web Parts
WSS site templates
WF workflows
BDC entities
InfoPath forms
MISMO Accelerator
BizTalk orchestrations
BRE rules
SQL Server schemas
Web Services proxies
Reports
Glue code
MSI for installation

Architecture guidance —White papers that educate architects about how to design, build, and deploy OBAs for LOS
Building Sustainable Banking Architectures
Architecting Enterprise Loan Workflows and Orchestrations
Architecting Regulatory Complaint Banking Solutions

Rich media —Webcasts and podcasts about Reference Architecture
Hands-on lab —Scripted application scenario, self-paced online training

Microsoft Office SharePoint Server 2007
.NET 3.0 (WCF and WF)
BizTalk 2006
Orchestrations
Business Rules Engine (BRE)
SQL Server 2005
Analytical Services
Reporting Services
Enabling Technologies Content Management Workflow & Portal Business Intelligence Search Communications & Collaboration SQL Server BizTalk

Logical Architecture Presentation Layer Extensible UI Web-Based Portal Office Clients Business Rules Engine Orchestration Layer Business Process Management Centralized Business Rules Data Services Layer SQL Server 2005 Third-Party External Mortgage Providers Lending Message Bus Application Services Layer Unified Communications and Collaboration Business Intelligence Enterprise Content Management Workflow Search Business Data Catalog Extensible UI Open XML File Formats Website and Security Framework

Greater than the sum of the parts
Office Business Applications + = OBA + Real-world + Implicit + Unstructured + Collaborative + Ad hoc + Dynamic
Idealized
Explicit
Structured
Transactional
Formal
Rigid

Anatomy of OBA Outlook Word Excel PowerPoint InfoPath Communicator Clients Forms Services Excel Services Data Services ECM Services Security Services Storage Services Portfolio Management Project Management Enterprise Search MOSS 2007 Portal Framework Workflow Foundation Rights Management Services Document Libraries WSS 3.0 Shared ASP.NET Master Pages | Web Parts ASP.NET Master Pages | Web Parts .NET VB | C# IRM Open XML

Couples rich UI with back-end systems
Utilizes MOSS Services
OBA Architecture Patterns
MOSS portal is the primary UI
Exposes LOB information through Web Parts
Smart Client, Ent. Mashup
Fits in heterogeneous environments
Office Clients Portal Clients Hybrid Clients WP MOSS Services LOB Systems WP WP LOB Systems WP WP Ribbon Task Pane MOSS Services LOB Systems

Presentation Layer Presentation Layer Extensible UI Web-Based Portal Office Clients Business Rules Engine Orchestration Layer Business Process Management Centralized Business Rules Data Services Layer SQL Server 2005 Third-Party External Mortgage Providers Lending Message Bus Application Services Layer Unified Communications and Collaboration Business Intelligence Enterprise Content Management Workflow Search Business Data Catalog Extensible UI Open XML File Formats Website and Security Framework

Office UI extensibility
Contextual ribbons
Tight integration with Office by using task panes and ribbons
Application-level add-ins
.NET-managed code extensibility
Presentation Layer—Clients 1 of 2

New UI customization model
Application-level task panes
Consistent model between applications
Create and deploy application -specific functionality
Add your own tabs, built-in tabs, and contextual tabs
Presentation Layer—Clients 2 of 2 Add-in VSTO Services WSS / MOSS Web services Ribbon Task Pane Core Features Storage

Word, Excel, and PowerPoint
Overhauled UI to create new user experience (UX)
Enhanced integration with WSS and other data sources
New XML-based file format to enhance integration and interoperability
Outlook
New object model for developers
Enhanced search and RSS feeds
WSS integration with tasks, scheduling, and list synchronization
Office Client Integration Excel 2007 PowerPoint 2007 Outlook 2007 Exchange Server Other Databases & Web Services WSS “V3” Word 2007

ECM Integration Enterprise Search Business Data Catalog Role-Based Web Service Integration ECM Integration

Web Part page in WSS is designed with
One instance of SPWebPartManager class
One or more SPWebPartZones
Editor zones and Catalog zones supplied by WSS pages
Web Part Architecture Web Part 3 Web Part 4 Web Part 5 SPWebPartManager Editor Parts Catalog Parts Editor Zone Catalog Zone SPWebPartZone (Right) Web Part 1 Web Part 2 SPWebPartZone (Left)

Design time views
Modelling
XML Support Under the Covers
Word processing standard
Extends BI
Visio Visio XML Word, Excel, Powerpoint Open XML InfoPath Custom XML
Application -centric
Tech and industry standards– based

XML allows Office information to flow freely through the enterprise
New opportunities to share information with customers
Information can be surfaced through Office applications more easily
Generating documents in Word
Where Open XML Documents Can be Used XML

Your site can generate documents on demand
Generate documents from live back-end data
Eliminate cut-and-paste from Web pages
Provide rich offline experience
Scenario: Document Generation Excel Your Bank’s Web site Spreadsheet with your account data

Pluggable architecture
You can design your own inspector
Add yours through exposed COM interface
Some possibilities:
‘ Sensitive’ words, phrases, or topics
Content marked confidential
Verifiable
New file format allows for external verification
Document Extensibility Scenarios

Extending MOSS Web Services WSS Adapters and Object Model Remote Client Client or Web Parts SharePoint Server

InfoPath Architecture Generate and render HTML (using script) Validation Execute calculations Execute rules Editing actions (All using script) Post back event log via XMLHTTP Return updated data array Download script and data array Browser WSS Generate MOSS Servers Replay event log XSN XSN XSN, XML loaded Business logic execution

Rich XML transformation, conditional formatting calculations, data access, and validation
Developer productivity gains
Extensibility
SharePoint Web Part
InfoPath client option
Smart Client
Online/offline capabilities
Native XML support
Why InfoPath?

Validated based on MISMO schema
Drag XML elements
Form saves standardized MISMO XML to document library
Versioning of auditing of the loan occurs automatically
InfoPath Loan Application Screen <?xml version="1.0" encoding="utf-8"?> <xs:schema xmlns="http://tempuri.org/MORTGAGE_APPLICATION_v2_1" elementFormDefault="qualified" targetNamespace="http://tempuri.org/MORTGAGE_APPLICATION_v2_1" xmlns:xs="http://www.w3.org/2001/XMLSchema"> <xs:element name="LOAN_APPLICATION"> <xs:complexType> <xs:sequence> <xs:element minOccurs="0" maxOccurs="1" ref="_DATA_INFORMATION" <xs:element minOccurs="0" maxOccurs="1" ref="ADDITIONAL_CASE_DATA" /><xs:element minOccurs="0" maxOccurs="1" ref="AFFORDABLE_LENDING" /> <xs:element minOccurs="0" maxOccurs="unbounded" ref="ASSET" /> <xs:element minOccurs="0" maxOccurs="unbounded" ref="DOWN_PAYMENT" /> <xs:element minOccurs="0" maxOccurs="1" ref="GOVERNMENT_LOAN" /> <xs:element minOccurs="0" maxOccurs="1" ref="INTERVIEWER_INFORMATION" /> MISMO XSD

Forms are first-class e-mail items in Outlook 2007
Easy access to forms within Outlook
Property promotion in Outlook folders
Export to Excel and Merge functionality within Outlook
Offline experience
InfoPath E-Mail Forms E-Mail

Application Services Layer Presentation Layer Extensible UI Web-Based Portal Office Clients Business Rules Engine Orchestration Layer Business Process Management Centralized Business Rules Data Services Layer SQL Server 2005 Third-Party External Mortgage Providers Lending Message Bus Application Services Layer Unified Communications and Collaboration Business Intelligence Enterprise Content Management Workflow Search Business Data Catalog Extensible UI Open XML File Formats Website and Security Framework

Anatomy of Loan Application Services Operating System Platform Services WSS Core Services MOSS Application Services Database Search Workflow ASP.NET (Web Parts, Personalization, Master Pages, Provider Model for navigation, security, and so on) Collaboration ECM Portal Search BPM BI Project Storage Repository Metadata Versioning Backup Security Rights/Roles Pluggable Auth Per Item Rights Trimming Mgmt Admin UX Delegation Provisioning Monitoring Topology Config Mgmt Farm Services Feature Policy Extranet Site Model Rendering Templates Navigation Visual Blueprint APIs Fields/Forms OM and SOAP Events Deployment

Presentation Layer and Application Services
Composite Style UI Architecture
UI Driven by User Context Active Directory SQL Server BDC XML Cache Content Management Services

BDC Architecture Overview Web Parts Web Services Metadata Business Data Catalog Ws Proxy ADO.NET Database Lists Search User Profile Custom Apps List Store Search Index Profile Store

Business Data Catalog Connects Users to LOB Data

Using the BDC for the Loan Pipeline Pipeline Web Part Metadata Metadata Business Data Catalog Ws Proxy ADO.NET Web Services

Workflow Map Master Loan Flow (MLF) Activate Loan Active Loan Save Lock Services Underwriting Close InfoPath Flows Registration Pricing Lock Approval Process Integration Services Underwriting Rules Decision Engine Enterprise Loan Orchestrations (ELO) Products and Pricing Flow (PPF) Rate Entry Approval Processes Rates Published Blackout Over

WSS hosts the WF runtime engine within its process
WSS provides custom implementations of the necessary services
Workflow Architecture Partner/ISV Applications Office Clients WSS in Browser Windows SharePoint Services Windows Workflow Foundation WF Runtime Engine Workflow Model Scheduler Rules Tracking Base Host Providers Transactions Roles Tracking Messaging Persistence Notifications

Presentation Layer—Clients 1 of 2 Lender Worksheet Excel Client Integration Workflow Collections Document Library Farm-Level Workflow Association Table Rate Alerts Persist to Database LOB Integration

Presentation Layer—Clients 2 of 2 Underwriter Outlook Integration Loan Origination System WF 3. Loan Approval Form Sent 4. Return Signed with Manual Corrections BizTalk Office SharePoint Server 2007 1. Underwriter Rules Fired 2. MLF Starts UW Workflow Master Loan Flow (MLF) Activate Loan Active Loan Save Lock Services Underwriting Close Underwriter (UW) Embedded InfoPath Form with IRM Protection

Human vs. System Workflow
Information worker–driven
User interface–centric
Unstructured data
Process controls navigation and UI elements
Application–driven or Business Rules–driven
Application interface –centric (Services)
Structured data
Workflow controls application-level and enterprise-level business logic
Systems Business Users Human Workflow System Orchestration

MLF Human Workflow

Human workflow controlled by MOSS 2007
System workflow controlled by BizTalk 2006
Integration orchestration services controlled by BizTalk
Workflow Separation MOSS BizTalk

Document Generation Architecture Business Processes and Applications Application Server Platform XML Policy Creation Loan Origination BizTalk.NET Rules Engine Document Specialist Client User Word Document Viewing, Printing, and Editing InfoPath Data Editing System Of RecordDB Template Forms/Documents Archival .NET Document Generation Service Optional Business Process Orchestration

Step 1: Create or Edit the Document Templates <? xml version ="1.0"?> < xs:schema targetNamespace ="urn: Company.Dept.Project " xmlns ="urn: Company.Dept.Project " xmlns:xs ="http://www.w3.org/2001/XMLSchema"> < xs:element name =“ Customer "> < xs:complexType /> </ xs:element > </ xs:schema > Business User uses Word to edit and link Word template with Business schema (business schema previously created by the technical staff) Template Document Store (RDBMS, Content Management Store) Business User Microsoft Word Business User stores template in the template repository

Step 2: Optional. Add Business Rules to Word Template Template Document Store (RDBMS, Content Management Store) BRE Rules Composer Business User builds Business Rules and links the rules into the Word template Business User Microsoft Word Business User stores template in the template repository

Step 3: Generate Final Documents XML Framework-Provided Document Generation Service. Enterprise reusable Web service . Uses framework-provided integration services to retrieve business data from System-Of-Record Business User uses framework-provided document picker UI to select templates and generate the business documents XML XML BizTalk.NET Rules Engine Document Picker UI Word Templates Business Data And Text Library Final Business Document. Business data merged and embedded rules executed. Document generated. Microsoft Word PDF Document Other Formats Business User .NET Document Generation Service

Content Management
Store closed loan documents in CM
Archive, retrieval
Checkout, versioning
Enterprise Content Management (ECM)

Records management
Loan document Aging required for compliance
Auditing
User auditing required across the board
Labels and barcodes
Barcode generator usually needed
Barcode Deal keys
IRM protection
Digital signatures stored with documents
ECM: Policy And Compliance

Required to solve loan-processing data synchronization issues
Validate Deal-keyed data
Search for Deals
Orchestrate scanning and validation
ECM: Imaging and Validation

Lending Message Bus Presentation Layer Extensible UI Web-Based Portal Office Clients Business Rules Engine Orchestration Layer Business Process Management Centralized Business Rules Data Services Layer SQL Server 2005 Third-Party External Mortgage Providers Lending Message Bus Application Services Layer Unified Communications and Collaboration Business Intelligence Enterprise Content Management Workflow Search Business Data Catalog Extensible UI Open XML File Formats Website and Security Framework

Lending Message Bus Architecture File Adapter MISMO XML MISMO XML FannieMae Files Custom XML Orchestration Services Business Rules Engine MISMO Accelerator XML Adapter Files File Landing Zone

Benefits
Centralized management layer for message communications
Internal and external message management
Intelligent message routing
Unification of multiple lending systems
Interoperability between legacy systems
Services governance
Version control, life cycles, provisioning, and so on
Lending Message Bus

BRE and Orchestrations Presentation Layer Extensible UI Web-Based Portal Office Clients Business Rules Engine Orchestration Layer Business Process Management Centralized Business Rules Data Services Layer SQL Server 2005 Third-Party External Mortgage Providers Lending Message Bus Application Services Layer Unified Communications and Collaboration Business Intelligence Enterprise Content Management Workflow Search Business Data Catalog Extensible UI Open XML File Formats Website and Security Framework

Enterprise-wide orchestration layer
Breaks down application and LOB silo barriers
Three core functions:
Loan Decision Engine
Integration Services
Underwriting Rules
Native integration with BRE
Orchestration Layer Enterprise Loan Orchestrations (ELO) Decision Engine Integration Services Underwriting Rules

Orchestration Layer—Orchestration and BRE Integration Policies BizTalk BRE BizTalk Orchestration Workflow BizTalk Orchestration WF Workflow Rules Master Loan Flow Orchestration Web Services Facts True / False Returned Facts

Data Services Layer Presentation Layer Extensible UI Web-Based Portal Office Clients Business Rules Engine Orchestration Layer Business Process Management Centralized Business Rules Data Services Layer SQL Server 2005 Third-Party External Mortgage Providers Lending Message Bus Application Services Layer Unified Communications and Collaboration Business Intelligence Enterprise Content Management Workflow Search Business Data Catalog Extensible UI Open XML File Formats Website and Security Framework

One platform for all data services
Business intelligence though Reporting and Analytical Services
Data-oriented integration though SSIS
Tight integration with MOSS
Report Web Parts
Delivery of reports to document libraries
Searchable content
Office 2007 integration (Excel, Word, Outlook)
Data Services Layer 1 of 3 Reporting Services SQL Server Development Tools Integration Services Analysis services Management Tools

Data Services Layer 2 of 3 Supporting the Business Process Through Federated Data Master Loan Flow (MLF) Activate Loan Active Loan Save Lock Services Underwriting Close Loan Information Store Secondary Systems Servicing Systems Origination Systems Underwriting Systems

Data Services Layer 3 of 3 Reporting Services Architecture Browser Office Custom App Builder Security Services (NT, Passport, Custom) Delivery Channels (E-mail, Sharepoint, Custom) Delivery Security Data Processing Rendering Report Processing Report Model Data Sources (SQL, OLE DB, ODBC, and so on) Output Formats (HTML, Excel, TIFF, Custom)

Addressing Enterprise Concerns

Physical Architecture Enterprise Services Exchange Server Active Directory SQL Server MOSS and IIS Server BizTalk Application Servers

Easier to deploy
Discrete composite application parts
Centralized server-side components
Fits into current deployment models
Office client COM-based add-ins
Click-once Smart Clients
Uses existing solutions to reduce the amount of deployment
Forms controlled by the server for Online and Offline modes
Deployment

MOSS Data Stores based on SQL Server
Workflows can span across physical boundaries
MOSS Application Tier and Web Tier can be separated
Individual components such as Excel Services can be isolated
Scalability
Orchestrations and the Business Rules Engine can be separated
Orchestrations can span physical boundaries
Web Services can exist on the same machine or span to a dedicated machine
Reporting services provide highly optimized data access
Clustering
Data can span to many sources
Many storage options (with SAN and NAS)
MOSS and IIS Server BizTalk SQL Server

Farm
The highest-level scope for a WSS deployment
An installation of one of more Web servers and back-end servers
Each WSS farm has one and only one configuration database
Web application
An IIS Web site extended with WSS
Entry point capable of hosting tens of thousands of site collections
Site collection
Unit of scale and ownership containing top-level site
Stored in one specific content database
Site
Many-per-site collection
Uses same content DB as parent site
Scale the Architecture User Requests Content Database 1 Content Database 2 Configuration Database SSP Database Search Database ECS Server (mirrored) ECS Server Search Servers Indexing Servers

Fault-tolerant server infrastructure
Eliminate single points of failure
High performance and scalability
Avoid resource bottlenecks
Security
Reduce downtime due to breaches
Backups and disaster recovery
Recover from catastrophic failures
Server High Availability

Open standards used throughout the architecture
Each layer communicates via XML
MISMO XML is used everywhere that is applicable
Ensures interoperability between solutions
Partner networks interoperate
Open Standards

Interoperability System Inputs Loan Integration Loan Integration Government Bank to Bank Third-Party Services Fax Machine Phone User Input E-Mail BizTalk Message Bus Point Integrations Existing Loan and LOB Systems

View business data
Binary interaction
Web Services
Bridging Technology Web Services WebDav Services UI Services Business Logic & Workflow Composition Presentation Business Logic & Workflow Composition Business Logic & Workflow Composition Business Logic & Workflow Composition Web Services Adapters BDC DB DB DB DB

Connecting MOSS and BizTalk WCF WSS Adapters .NET MOSS Orchestrations BizTalk .NET MOSS Adapter Web Services

Extensibility Web Service Proxy Web Services Windows Mobile Smart Client Tablet Application MISMO XML LOB Systems Legacy Systems

Many scenarios:
Intranet architectures
Extranet architectures
Internet architectures
Communications Architecture 1 of 3

Communications Architecture 2 of 3 HTTP: 80 SSL: 443 Custom SQL Server File and Print UDP: 137, 138 TCP: 139 SMB: TCP/UDP 445 Encryption Server TCP: 135 Search Indexing TCP: 80 SSL: 443 TCP/SSL: 1433 Custom TCP: 5737 SSL: 56738 Custom Query Server Web Services Forms Server Excel Server Index Server Identity Server

Communications Architecture 3 of 3 HTTP SOAP SSL HTTP SOAP SSL HTTP - SOAP CIFS HTTP SOAP SSL TCP/IP SQL Server Third-Party Services File Landing Zone Files BizTalk MISMO Accelerator Orchestration Services MOSS Windows Workflow Foundation

Relies on SharePoint for both authentication and authorization
Only spreadsheets from trusted locations can be loaded
Only data from trusted sources can be loaded
Security 1 of 3

Visible information can be controlled at several levels:
Entire spreadsheet
For each sheet
For each set of named items (named ranges, charts, Pivot Tables, and so on)
Code that extends Calculation Services can be controlled by using CAS
Security 2 of 3

Security 3 of 3 Active Directory Brokers Lending Personnel Other Enterprise Identity Providers
Managed by AD Groups:
Administrator
Underwriter
Broker
Broker Admin
IWA IWA

IRM for InfoPath forms
Enabled by end user
Enabled by form author
Integration with IRM in Outlook
InfoPath attachments inherit e-mail protection
Integration with IRM in SharePoint
WSS is the content owner
Client enforces protection applied on downloadv
Information Rights Management Loan Origination System Office SharePoint Server 2007 WF Underwriter (UW) Embedded InfoPath Form with IRM Protection

All development under one IDE (Visual Studio)
Unified communications architecture
Application and enterprise
Single sign-on
Composite style architecture
Rich workflow capabilities
Self-service information worker workflows
Maintainability

Appendix
Recommended resources
Financial Services Architecture Center http://msdn.microsoft.com/FinSer vAr ch
Mike Walker’s Blog http ://blogs.msdn.com/MikeWalker
MSDN Solution Architecture Center http://msdn.microsoft.com/architecture
Microsoft Patterns & Practices http://msdn.microsoft.com/practices/

http://www.mikethearchitect.com	35
http://www.slideshare.net	27
http://webcache.googleusercontent.com	1

Loan Origination Reference Architecture Deep Dive

by Mike Walker on Jan 19, 2009

Accessibility

Categories

Tags

Upload Details

Usage Rights

3 Embeds 63

Statistics

Loan Origination Reference Architecture Deep Dive — Presentation Transcript