CHARLOTTE, N.C. — IBM Lender Business Process Services Inc. and Coastal Federal Credit Union have entered into a five-year contract whereby IBM will provide comprehensive private label mortgage loan fulfillment services.
As part of the agreement, IBM Lender Business will provide $1.9 billion Coastal with a full range of lending services, including loan application processing, underwriting, customer care, vendor management, document preparation and loan closing coordination.
The IBM unit said the arrangement will enable Coastal to replace much of the fixed costs associated with typical loan fulfillment operations with a variable-cost framework, freeing employees to focus more on providing better personal service and support to members. This deal is anticipated to lower mortgage origination costs for Coastal by 30% to 40% and provide best in class functionality to rapidly scale to meet market demands.
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