AN IMPLEMENTATION OF LEAN PRINCIPLES IN THE LOAN CLOSING PROCESS IN CALIFORNIA

摘要

In today's dynamic business environment, being competitive and eliminating waste can make a difference between success and failure. One of the ways in which a reduction of waste can be achieved is by implementing lean principles. This can be done in both manufacturing as well as in the service industry. For this paper, the authors have considered the loan closing process in California and have applied Lean Principles to the same. Real estate sales in California totaled about $173 billion in 2014 and are expected to be around $193 billion in 2015. The majority of real estate sales involves the buyer taking a mortgage which is paid over a period of 15, 20, or 30 years. A mortgage loan, also referred to as a mortgage, is used by real estate buyers to raise money to buy the property to be purchased or by existing property owners to raise funds for any purpose. The loan is "secured" on the borrower's property. Thus, obtaining the loan is a significant step in the real estate transaction going through successfully. The loan closing process is the final step in obtaining the loan in order for the real estate transaction to go through successfully. However, there is significant room for improvement in the loan closing process. In this paper, the authors have focused specifically on the loan closing process, identified value added and non-value added steps, as well as made recommendations on how the loan closing process can be improved in California.