Microsoft Lending Reference Architecture

Mike WalkerFinancial Services Architecture Strategist http://blogs.msdn.com/MikeWalker http://msdn.microsoft.com/architecture/orlos

Mike WalkerFinancial Services Architecture Strategist http://blogs.msdn.com/MikeWalker http://msdn.microsoft.com/architecture/orlos

Goals of the ArchitectureScalable and Robust Lending PlatformComposite Architecture that lends to SOA principlesClear separation of technology aspects

Human and System WorkflowsInformation architectureSecurity

Concept of an Application Services LayerComponents that consume and share industry standards schemas (e.g., MISMO)

Presentation Layer

Web Based Portal Web Based Portal Extensible UIExtensible UI

Application Services Layer

Office ClientsOffice Clients

Business Rules Engine

Centralized Business Rules

Centralized Business Rules

Orchestration Layer

SQL Server 2005SQL Server 2005 3rd Party External Mortgage Providers

3rd Party External Mortgage Providers

Lending Message Bus

State full Web Services

State full Web Services

Stateless Web Services

Stateless Web Services

Business Process Management

Business Process Management

Data Services Layer

Addressing Business Challenges

• Strong Regulatory factors such as:– HMDA, CRA and Customer Privacy

• Lending is process heavy with many un-needed manual processes

• Lenders must deal with 40 unique documents that span up to 300 pages

• Highly competitive landscape where products and the rates of those products give them the edge

• Technology efficiencies can help:– A 30 year fixed mortgage rate offered online is an average 50

basis points lower than that available offline *

* US Market Forecast - JupiterResearch 2005

Logical ModelPresentation Layer

Web Based Portal Extensible UI

Application Services Layer

Office Clients

Business Rules Engine

Centralized Business Rules

Orchestration Layer

SQL Server 2005 3rd Party External

Mortgage Providers

Lending Message Bus

Statefull Web ServicesStatefull Web Services Stateless Web ServicesStateless Web Services

Business Process Management

User Interface

Framework

Unified Collaboration

Business Intelligence

Enterprise Content

Management

Data Services LayerPortal Framework

Workflow SearchBusiness

DataCatalog

Security Framework

Open XML

Formats

Data Services Layer

• Architecture Guidance (5 Whitepapers)• Rich Media (Web Casts)• Hands on Labs and MSDN Virtual Labs• OBA Reference Application Pack (RAP) for Loan

Origination Systems in Financial Services– Based on .Net Architecture Frameworks– Code Artifacts

What is included

• 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

Lending Channels

Lending Reference ArchitectureLending Reference Architecture

RetailRetail WholesaleWholesale Correspondent

Correspondent

Master Loan Flow (MLF)

Active 1003 Entry Pricing Lock Services Underwriting Close

MOSS - Application Services Layer

A Walk-Thru

I need a loan… I am going to go to WoodGrove Bank

Lending Message Bus

LOB Systems

B2B

Business Rules Engine Orchestration Layer

Broker

Loan Forms

Registration WorkflowTranslating Business Process into WF

InfoPath Flows Registration Pricing LockRegistration Pricing Lock Approval ProcessApproval Process

Master Loan Flow (MLF)Activate Register Loan Lock Processing Services Underwriting Doc Gen Fund

Global Workflow Interactions

Master Loan Flow (MLF)

Activate Loan Active Loan Save Lock Services Underwriting Close

InfoPath Flows Registration Pricing LockRegistration Pricing Lock Approval ProcessApproval Process

IntegrationServices

UnderwritingRules

Decision Engine

Enterprise Loan Orchestrations (ELO)

Products and Pricing Flow(PPF)

RateEntry

ApprovalProcesses

RatesPublished

BlackoutOver

Lending Message Bus

Lending Message BusLending Message Bus

Centralize Business Processes

Examples include:• Get Products and Pricing• Automated Underwriting• Pull Third Party Data• Multi-Channel Integration

Centralize Business Processes

Examples include:• Get Products and Pricing• Automated Underwriting• Pull Third Party Data• Multi-Channel Integration

Measure and React

• Gauge Health • Obtain view in to process optimizations• KPIs• Management Dashboards• Alerts

Measure and React

• Gauge Health • Obtain view in to process optimizations• KPIs• Management Dashboards• Alerts

Agile Business

• Ability to react to market trends and customer needs• Augment the process• Create new products and services more effectively

Agile Business

• Ability to react to market trends and customer needs• Augment the process• Create new products and services more effectively

Summary of V2 Additions• Virtual Machine Optimizations

– Make image smaller– Improve performance

• Visual Studio 2008• Upgrade MOSS to SP1• Integration of Presence and Instant Messaging• Excel based Mortgage Calculators (5)• Additional Content Management• 2 New Business Intelligence Reports• InfoPath Form Work

– Updated the Quick Registration Form– Enhance Look and Feel– Added 1003 InfoPath based Form

• Document Generation Code Integration *

New Home Page

My Pipeline

Mortgage Calculator

“My Sites” for Broker

Online Mortgage Personnel

My Documents

My Profile

Property Screen S+S

MLS LookupWeb Service

WS Call

RETSStanda

rd

Lookup Table with ID to Property Pairs

ADO.Net

Document Generation

Custom Controls in document

Master Loan Flow (MLF)

Activate Register Loan Lock Processing Services Underwriting Doc Gen

DocGen Service

Call Web Service - Pass Document Name (Ex: Truth in

Lending) and the InfoPath XML

Retrieve Mappings and Word Document Template from SQL

New Document Library for Borrower

DocLib should be named what ever the <LoanID> is.

Fund

Fire Event

What DocGen can be used for:Closing Documents

Legal:• Promissory Note• Security Instrument• Assignments• ESIGN Disclosures and ConsentFederal Truth In Lending:• Truth In Lending Disclosure• Itemization of Amount Financed• Right to CancelRESPA:• Notice of Assignment, Sale, or Transfer of• Servicing Rights• RESPA Servicing Disclosure• Initial Escrow Account Statement• HUD-1HOEPA / PMI:• PMI Disclosures – Fixed, ARM,

Amortization Schedule

ECOA:•Fair Lending Notice•Right to Copy of AppraisalBroker / Lender / Investor Specific:•Closing Instructions•Payment Letter•Affidavit of Occupancy•Signature/Name Affidavit•E/O Compliance Agreement•Borrower’s Certification and Authorization•Hazard Insurance Authorization, Reqts and Disclosure•Tax Information and Collection•Notice of Flood Hazard Area•Flood Insurance Notification / Authorization•Request for Copy of Tax Form (4506)•Request for Tax ID & Certification

APPLICATION SCENARIOS Backup Slides

Broker MLF Screen Workflow

Excel in Secondary

Workflow CollectionsWorkflow

Collections

Document LibraryDocument Library

Farm-level WorkflowAssociation Table

Rate Alerts

LOB Integration

Persist to database

InfoPath Loan Application Screen

Document Library

<?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

WFWF

Underwriter Approval Process

3. Loan Approval 3. Loan Approval Form SentForm Sent

3. Return 3. Return signed withsigned withmanualmanualcorrectionscorrections

Embedded InfoPath form with Embedded InfoPath form with IRM ProtectionIRM Protection

BizTalkBizTalk

Office SharePoint Office SharePoint Server 2007Server 2007

1. Underwriter 1. Underwriter Rules FiredRules Fired

2. MLF Starts 2. MLF Starts UW UW WorkflowWorkflow

Loan Origination SystemLoan Origination System

UnderwriterUnderwriter(UW)(UW)

Master Loan Flow (MLF)

Activate Loan Active Loan Save Lock Services Underwriting Close

Lending Message BusArchitecture

MISMO Accelerator

XML Adapter

File Adapter

Orchestration Services

Business Rules Engine

File Landing Zone

Files

Custom XML

FannieMae Files

MISMO XML

MISMO XML