Case Study | 7-May-2025
Doing More with Less: A Strategic Approach to LM Claims Backlog Management
Optimizing cross-functional resources to meet SLAs, reduce costs, and streamline claims processing.
Elaborate on the Challenge
Between November 2023 and April 2024, a leading mortgage servicer experienced a sharp surge in claims inflow, resulting in significant backlogs in their Loss Mitigation (LM) Claims Preparation and Upload queues. The claims processing team, operating under a strict three-day SLA, was at risk of non-compliance - threatening delays in downstream processes.
With 13 billable FTEs handling an average of 530 loans per day, the existing capacity was insufficient to manage the mounting inventory. The client needed to bring down the current queue without increasing the headcount or incurring additional overheads - while still ensuring quality compliance.
Objective Summary
To eliminate the Loss Mitigation Claims backlog within SLA timelines by optimizing underutilized resources—ensuring 100% quality compliance without increasing headcount.
Business Impact
Successfully cleared the LM Claims inventory backlog without increasing FTE headcount.
Achieved an average utilization rate of 132% over six months.
Maintained 99% quality compliance throughout the engagement.
Significantly reduced long-term headcount requirements - from 13 FTEs to just 3.
Client recognized and appreciated the outcome with a personalized video conference.
Solution - Scaling Impact with Strategic Cross-Utilization
Moder addressed the challenge by identifying 23 resources from low-utilization processes within default servicing. These team members were trained and deployed to support the LM Claims process, focusing on both package preparation and uploads.
A two-week quality assurance phase ensured the new team met established compliance standards. Real-time performance monitoring, paired with structured training, enabled seamless integration into the workflow without disruptions to business-as-usual operations.
This strategic realignment delivered immediate capacity enhancement, enabling the team to process large volumes while maintaining SLA and quality targets.
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