How Bay Federal Credit Union Streamlined Post‑Closing with MortgageExchange

Imagine this: A mortgage has just closed, but the work is far from over. The lending team is frantically re-keying data from the loan origination system into the core banking system, triple-checking for mismatches. Funding the loan might be delayed until every field aligns, and even wire transfers to disburse funds require manual entry – a process rife with the potential for error. These post-closing hiccups are all too common in mortgage operations, turning what should be a celebratory moment into a back-office scramble. Bay Federal Credit Union faced exactly these challenges and decided to tackle them head-on.

About Bay Federal Credit Union

Bay Federal Credit Union is a member-owned financial institution based in Capitola, California, serving Santa Cruz County and surrounding areas. With approximately 94,000 members and over $1.7 billion in assets, it is one of the region’s leading credit unions. Bay Federal has a reputation for leveraging technology to better serve its members. In 2023, the credit union adopted Black Knight’s Empower loan origination system (LOS) to modernize its mortgage lending. Leadership emphasized empowering their lean staff with “advanced tools and automation” to increase speed and accuracy. However, to fully realize those benefits, Bay Federal needed to connect Empower with their existing core platform – Fiserv DNA – and streamline the entire post-closing process.

The Challenge: Disconnected Systems and Post‑Closing Friction

Bay Federal’s mortgage team was working with disconnected systems. Their core banking system (Fiserv DNA) and their LOS (Empower by Black Knight/Dark Matter) did not natively share data. This meant employees had to enter loan and member information twice, once in each system. Not only was this redundant work, it introduced opportunities for inconsistency – a typo or mismatch between systems could slip through and cause problems later. The manual “swivel-chair” process of copying data back and forth often led to delays due to dual entries. For instance, a slight data mismatch could stall the funding of a newly closed loan while staff hunted down the error. Similarly, the credit union’s wire transfer platform (Fiserv WireXchange) was not integrated with the LOS, requiring loan officers to manually re-enter wire instructions – a time-consuming task prone to error. All of this post-closing friction slowed down the back-office workflow and risked a less-than-perfect experience for members awaiting their funds.

The Solution: Seamless, Rules‑Based Integration with MortgageExchange

To eliminate these pain points, Bay Federal turned to Mortgage Workspace’s MortgageExchange® platform. MortgageExchange specializes in bridging disparate systems, and Bay Federal deployed it to connect Empower LOS with the Fiserv DNA core. The result was a direct, rules-based data exchange between the two platforms. In practical terms, data now flows automatically from the LOS to the core (and vice versa) under predefined rules, removing the need for any manual re-entry. Loan details, borrower information, and transaction updates entered in Empower are seamlessly and regularly synchronized to Fiserv, ensuring both systems stay in lockstep. MortgageExchange essentially acts as an intelligent pipeline, enforcing data consistency and business rules so that information is always up-to-date and accurate across systems.

Importantly, Bay Federal didn’t stop at just the core and LOS integration. They also applied MortgageExchange to streamline wire transfers. In a related project, the credit union leveraged the platform to link Fiserv’s WireXchange (their wire transfer system) with Empower. This integration automated wire transaction data updates between the LOS and the wire system, so that when a loan funding wire is initiated, both systems instantly reflect the details. By eliminating manual input in the wire process, Bay Federal ensured that wiring instructions were consistent and error-free in every system. The mortgage team no longer has to duplicate efforts or worry about wire data falling through the cracks – MortgageExchange handles it behind the scenes.

Outcomes and Benefits

The impact of these integrations was felt immediately in Bay Federal’s mortgage operations. The credit union transformed its post-closing workflow, achieving several key benefits:

• Real-time Data Synchronization: Bay Federal now enjoys a streamlined, real-time data exchange between Empower and the core, with no more time lags or waiting for batch updates. Both systems are always in sync, reducing confusion and ensuring everyone – from front-line staff to back-office – works with the same up-to-date information.

• No More Dual Data Entry: The integration eliminated duplicate data inputs entirely. Staff no longer perform redundant typing of the same loan details into multiple systems, which frees them from mind-numbing clerical work and removes the risk of introducing inconsistencies. This “swivel-chair” data entry between systems is a thing of the past.

• Faster Processing, Minimal Post-Close Cleanup: With information auto-populating across platforms, loan processing delays plummeted. There’s far less need for post-close “cleanup” or reconciliation since data mismatches have essentially been engineered out of the process. Eliminating manual steps has sped up the funding and onboarding of new loans, meaning members get their mortgage funds without unnecessary delays.

• Accurate, Speedy Wire Transactions: The WireXchange integration ensured that wire transfers are processed quickly and accurately. MortgageExchange removed manual intervention from the wire process, which avoids entry errors and saves precious minutes (or even hours) in getting funds disbursed. The team can trust that wire details in the LOS and core are consistent, dramatically reducing the chance of a mistake that could hold up a loan closing. In short, wiring money for loans has become a smooth, automated sequence rather than a manual chore.

• Operational Savings & Member Experience Improvements: By automating what used to be labor-intensive tasks, Bay Federal realized significant time and cost savings. According to the case study, the integration saved the credit union substantial staff hours and operational costs. Those saved hours have been redirected to higher-value work – staff can now focus on advising borrowers and improving services instead of typing and cross-checking data. This translates into a better experience for members: loans are closed and funded faster, information is accurate, and employees have more bandwidth to respond to member needs. The overall service quality has improved as employees spend more time serving members efficiently and accurately rather than fixing data errors.

From Post‑Closing Friction to Future Growth

Bay Federal Credit Union’s journey illustrates how solving post-closing friction isn’t just an IT improvement – it’s a strategic win for the business. By integrating their systems with MortgageExchange, Bay Federal removed obstacles that had been slowing them down. Real-time, error-free data flow means the credit union can scale up its mortgage lending without a commensurate increase in back-office workload. Loan officers and processors are no longer bogged down by duplicate entry or corrections, which boosts productivity and morale. More importantly, members benefit directly: their loans fund on time, and their information is handled with greater accuracy and care.

In the highly competitive mortgage market, this kind of efficiency and reliability becomes a differentiator. Bay Federal’s team can devote its energy to guiding members through the lending process and delivering a better experience, rather than firefighting data issues after closing. It’s a classic win-win: smoother internal operations and happier members. By leveraging MortgageExchange to cure its post-closing headaches, Bay Federal has positioned itself to scale lending operations and support more members – all while maintaining the personal, error-free service that credit unions pride themselves on. The message is clear for other credit unions and mortgage lenders: when you eliminate the post-closing drudgery through smart integration, you’re not just fixing a process – you’re laying a foundation for growth and enhanced member trust.