Industry:
Finance
Freedom Mortgage
Streamlining Success at Freedom Mortgage: Transforming Accounts Payable Operations
Freedom Mortgage's Path to Financial Process Optimization
Freedom Mortgage, a leading full-service national mortgage lender, headquartered in Florida, is renowned for its robust offerings in retail, wholesale, and other lending channels. As the 4th largest Veterans Affairs (VA), 8th largest Federal Housing Administration (FHA), and the 21st-largest mortgage lender in the United States, the company sought an advanced solution to modernize and streamline its accounts payable (AP) processes.
This led them to implement Basware AP Automation with SmartPDF AI, revolutionizing their financial operations.
Optimizing the Process
Data-Driven
decision making.
5 - 2 days
Faster payments, fewer errors.
Visibility
Enhanced visibility cut payment inquiries and improved satisfaction.
Navigating Complex Financial Operations
Before adopting Basware, Freedom Mortgage’s AP legacy system was limited to invoice routing without integration to the ERP, necessitating manual interventions that risked errors and delays.
“We spent a lot of time proofreading to make sure errors didn’t occur,” recalls Jeannine Miller, Associate Director of Corporate Accounts Payable. Despite these efforts, the process was cumbersome and error prone.
The nature of the mortgage industry adds another layer of complexity to AP operations. Freedom Mortgage operates multiple AP departments, each with distinct responsibilities. The Servicing AP department handles loan servicing, escrow collection, and tax payments, while the Corporate AP team manages a myriad of transactions, from utility bills to complex loan-related refunds and payments. Additionally, there is a dedicated AP team for HR related transactions. These varied operations require a robust system that’s capable of handling intricate review and approval stages to ensure financial accuracy and compliance.
The complexity of mortgage operations means that AP processes are far from straightforward. Each transaction type, whether it’s a utility bill or a loan related refund, demands thorough background checks and multiple levels of approval.
“There is a whole process in the backend that has to be handled before we can make payments. There are additional levels of review and approval that need to happen,” explains Miller.
This ensures that funds are correctly allocated, coding is accurate, and all necessary approvals are obtained before any payment is made.
The Search for a More Efficient Solution
Freedom Mortgage’s requirements were extensive, demanding a solution capable of high customization to fit their unique workflow. They evaluated multiple vendors, each promising customization but often falling short.
"We didn’t want to do the heavy lifting and have to design the whole thing ourselves. When we looked at Basware, we knew we could customize it to meet our needs,” says Miller.
Many vendors proposed solutions that required extensive customization for even basic functionalities, leading to increased time and costs.
Basware’s out-of-the-box product was so much more advanced than other providers. The demos were the deciding factor. Basware knocked it out of the park.”
Jeannine Miller, Associate Director of Corporate Accounts Payable, Freedom Mortgage
Achieving Precision and Speed
The implementation of Basware AP Automation brought significant improvements. The integration with the ERP system streamlined the process, reducing manual entry and associated errors.
“Previously, the process after approvals was completely manual. Now, we’re able to pay within two days – down from five days, which is phenomenal,” Miller notes.
This drastic reduction in processing time enhanced operational efficiency and accuracy. Amy Tieman, VP of accounting’s Financial Operations Review team, highlights another crucial benefit: enhanced visibility.
“Before Basware, the biggest frustration was having to stop the process to confirm that we have received the funds from Servicing to remit the payment requests. With Basware’s routing rules, we can now validate that funds have been received, prior to the request getting to AP to process. Also, having the payment visibility, people can see if invoices have been paid, and that makes them self-sufficient and able to communicate details to their vendors”, she explains.
This improved customer satisfaction and transparency reduced the constant stream of payment inquiries.
Empowering Teams with Enhanced Capabilities
The transition to Basware did not lead to a reduction in headcount but, rather, a reallocation of resources. Freedom Mortgage’s AP team, previously bogged down with manual data entry, can now focus on more strategic tasks.
“The team’s roles have been enriched. They work on other projects with the accounts side,” says Miller.
The automation has allowed for better utilization of talent, enhancing job satisfaction and productivity.
Data-Driven Decision Making
The advanced reporting functionality of Basware has been a game changer for Freedom Mortgage. Realtime data and comprehensive reports enable the CFO and other executives to make informed decisions.
“We use it every day for forecasting payments and monthly reporting to see what our spend is. It allows us to see what we’re spending and if we can make some changes for the better,” Tieman elaborates.
The system’s integration capabilities further streamline operations. For instance, integration with the HR system has eliminated manual user setups and password resets, saving significant administrative time.
“The integration saves us so much time,” adds Tieman.
A Leap Forward in Financial Operations
The successful implementation of Basware AP Automation has positioned Freedom Mortgage as a model of efficiency and accuracy in the financial services industry.
“I love the system; it’s leaps and bounds better than what we had previously.” Miller states.
The streamlined processes, enhanced visibility, and robust reporting have collectively empowered Freedom Mortgage to focus on their core mission: delivering exceptional mortgage services to their clients.
As Freedom Mortgage continues to grow and evolve, the scalable and customizable nature of Basware ensures that their AP processes will remain efficient and adaptable to future needs. The collaboration has not only achieved the immediate goals of integration and reduced processing time, but has also laid a strong foundation for sustained operational excellence.