Charles Weidman, President & CEO of Buddha Logic discusses their recent ECM implementation with Brian Mueller, CHFA Manager - Integrated Records Management.

1. The First Mile –
Single Family Loan Document
Processing in 37 Minutes

2. Presented By:
Charles Weidman
President & CEO
Buddha Logic
Brian Mueller
Manager, Integrated Records Management (IRM)
Colorado Housing and Finance Authority

3. The Challenge
“The Black Box”
 Starting several years ago, CHFA converted to image loan files and secure
electronic delivery
 Implementing technology dropped processing time from several days to just
eight hours
 Loan document processing consists of:
 350 – 500 page single family loan application
 Classifying each document correctly
 Assigning applicable keywords
 Storing the entirety in CHFA’s image system
 Loans are then available for review
 This is referred to as the “first mile” of loan delivery and validation process
 Increased improvements reduced processing times by four hours
 Lender frustrations became apparent
 No visibility into the status of their submitted documents made the
experience seem to be like sending documents into a “black box”

4. CHFA’s Solution
 IRM and IT partner to create a document delivery portal
• Allows lenders to upload their documents and receive immediate
status verification as to the receipt and validity of loan documents
 Supplemental inclusion of a software tool call Kofax
Transformation Modules (KTM)
• Identifies loan documents automatically
• Increased processing speed at classification
• Tools still requires human review to ensure accuracy of document
classification and separation
• A critical function of IRM
• Working with Kofax we achieved new understanding of processing
time to validate the systems classification and separation

5. CHFA’s Solution
 What ‘s behind the scenes
 Foundation
• IRM’s work to build and document CHFA’s document taxonomy
• IRM’s work to review and document Processes and SOPs
• IRM’s continuous improvement approach
 Education
• Internal: Intensive staff involvement in understanding and learning content
• Walk a Mile training with business unit to gain expertise
• External: Engagement early on with our partners to standardize naming
conventions and ease of use in delivery process

6. CHFA’s Solution
 We identified lag time of more than 15 minutes between the document review
and validation touchpoints
• Established a Key Performance Indicator target of getting document
batches from review to validation in three minutes and five seconds or
less, on average
• CHFA has seen a marked improvement in loan file processing
 Using analytics to create insight has created a culture shift in IRM
• We can pull data on our process and see how long each step takes
• Discover where delays occur
• Increased awareness of performance
• Motivate the entire team to step up their game
• Deliver better service and to do it faster and more accurately

7. Achieved Measurable Improvement
 Some measurable improvements include:
• Achieved a 63-minute single family loan file processing time in 2015
• Improved to an average 37-minute single family loan file processing time in
2016
• Handled 42 percent increase in loan file volume without increased
headcount in 2015
• Achieved a Ginnie Mae document accuracy rate of 99.87 percent (error
rate of only 0.13 percent). Previously, error rate was 5 percent annually
• Won “First Mile Solution of the Year” Award from Lexmark (Kofax) in 2016,
beating out international and Fortune 500 Company competition

8. Achieved Measurable Improvement
 What ‘s behind the scenes
• A KTM Model that implements chfa’s document taxonomy
• A commitment to provide monthly care and feeding of the Model
• Removing out dated content
• Identifying and training new content
• IRM’s is self-monitoring, they look for process improvements
• Standard File Naming Conventions
• Straight-Through Documents

9. Effective Use of Resources
 The goal of an nonprofit is to do more with less, and CHFA is no
different
• The “First Mile” improvements have allowed the IRM team to
handle a 42 percent increase in loan file volume without increased
head count
• Since IRM is now responsible for document classification, CHFA’s
Home Finance team is able to evaluate more loans in less time
• Faster decisions to either approve or suspend the loan

10. Benefits vs. Costs
 CHFA’s greatest benefit has been the ability to increase loan
production by almost 50 percent without adding headcount
• Additional cost savings include lender savings from shipping, reduced
physical records storage and destruction costs, and paper costs
• This equates to a combined annual savings of approximately $1 million

11. Replicable
 HFAs are document-intensive organizations
• To achieve operational efficiency, transitioning to imaged
documents is a must
• To achieve the next level of speed and agility, an HFA would
need to consider investing in a document classification engine
• There is upfront and on-going cost to this technology, it has
resulted in overall savings
• It is key to incredible operational efficiency gains

12. Maintainable
 ECM is not a ‘Project’, it is a Program
• Budget
• chfa provides an annual budget to maintain and grow their ECM program
• Support
• IRM is the champion of their ECM program providing:
• Education and Training for internal and external customers
• Documentation on how to process, access and store content
• Innovation through their Continuous Improvement approach
• Partnering
• chfa approaches working with Vendors as partners

13. Achieve Strategic Objectives
 Rapid processing of single family loan files is evidence of advancing
continuous improvement
• That is a key philosophy that CHFA has embraced to improve our
operations
• CHFA believes that more efficient, effective operations lead to
increased profitability, which allows us the ability to have a greater
community impact in the communities we serve

14. “You can’t manage what you don’t measure”
 Analytics review

15. Questions?
 Buddha Logic, Inc.
• 4845 Pearl East Circle,
Suite 101
• Boulder, Colorado 80301
• 720.739.1773
• info@buddhalogic.com
• http://buddhalogic.com
 CHFA
• 7595 Technology Way,
Suite 300
• Denver, CO 80237
• 303.297.2432
• bmueller@chfainfo.com
• http://www.chfainfo.com