How to industry sign banking ohio document mobile
Coordinator: Welcome,
and thank you for standing by. Today's conference
is being recorded. If you have any objections,
you may disconnect at this time. All participants
are in a listen-only mode until the question and answer
session of today's presentation. To ask a question at that time,
please press *1 and clearly record your name
for question introduction. I would now like to turn
the call over to your host, Associate Director
of Technology Services for the Division of Risk
Management Supervisors, Mr. Anthony Perry. Thank you. Anthony Perry:
Thank you. Thank you very much.
Good afternoon, everybody. I hope the weather's
treating everybody well. I know we've got weather
across the United States that can be disruptive,
and I hope it's not negatively impacting
anybody today. As said, my name
is Anthony Perry. I am the Associate Director
for Technology Services in the FDIC's Division of
Risk Management Supervision. Today I'm happy to be partnering
with Rae-Ann Miller, who is Associate Director
for Policy, also within the Division
of Risk Management Supervision. The FDIC is happy
to welcome you to an information sharing
session regarding an initiative
to explore the impact and value of using standardized
image loan data to simplify and improve
examination activities. In this session, we'll discuss
the initiative's goals, strategy, expected impact,
timelines, and next steps. This session will be recorded for training
and reference purposes. And to complement
the conference call, a link to the online
presentation slides can be found in the Financial
Institution Letter 22-2018. In addition to providing
general information, we will periodically
open the phone lines for questions
and your comments. On April 24, 2018, Financial Institution Letter 22
was published. The fill outlined the
initiative's general concepts, timeline, and that participation
is 100% voluntary. This initiative
is a direct result of feedback received from
financial institutions. Specifically,
financial institutions consistently ask the FDIC
to consider how we can better leverage
technology to simplify, improve, and reduce burden
during examinations. This idea has been
under consideration for several months. But before bringing the concept
to the broader industry, we wanted to
validate the concept. We validated the general
technology and processes during three
proof of concept exercises. These exercises confirmed that exporting image loan data
into a standard format has significant potential to
simplify loan review activities and reduce burden
on financial institutions. The graphic on Slide Five
demonstrates the general process flow
at a very high level. Please note the second step. Institution gathers
image documents and related information. During this step,
the institution will export specifically requested
image loan data into a standardized
data file format. These specially formatted files will consist of
seven data fields. The data fields
are generally pre-existing in loan imaging systems,
and should not require the collection
of new information. The seven data fields include
customer information file-- or sometimes referred to
as the Borrower ID-- the Borrower Name,
Account Number, Document Name,
Document Description, Document Category,
and Document Date. Having these seven
data elements in a standardized data format
will allow examiners to view loan documentation
in the same way regardless of which
financial institution or imaging vendor
they are working with. Slide Seven
shows an example of what that standard viewer
could look like. In considering next steps, initial testing will continue
through the end of 2018. For the near-term, the focus will be on safety
and soundness examinations. In the future,
the standardized export could be expanded to also
include compliance, HMDA, trust, and other activities. Through the end of 2018--
during pre-exam planning-- examiners may ask
financial institutions if they wish to participate
in this initiative or testing. Considering the uniqueness
of technology capabilities across financial institutions
and core processes, not every institution will be immediately
capable of participating. If you are interested,
we encourage you to have conversations
with your imaging providers. The FDIC is happy to work with
both you and your providers during the testing period
and during any broader roll out. Please keep in mind,
participation and testing in any broader implementation
is voluntary. The FDIC is not requiring
financial institutions to make any process
or technology changes. And, for those
who do participate, financial institutions
will continue to decide the amount of on-site versus
off-site examination activity. Many of the benefits of using
standardized image loan data can still be realized during
on-site loan review activities. After testing is completed, the FDIC will assess
and communicate results and determine if a broader
implementation is warranted. The FDIC is in consultation with
federal and state regulation - regulatory agencies to determine
if the standardized process can be incorporated into their
existing examination processes. In looking at
the timeline summary-- assuming that testing
validates our expectations-- this capability will be made
available for production use in the first quarter of 2019
by all financial institutions that are capable
of participation. As file sizes
are expected to be large, file transfers
will not use FDIC Connect. All export data file transfers
will be completed using a secure
file transfer tool. Data will be maintained
on encrypted FDIC systems and access will be restricted
on a need-to-know basis. Any data not needed to support
examination findings will be automatically deleted 90 days after
the examination begins. Operator, at this point, can we see if there are
any questions or comments? Coordinator: Yes. At this time, if you would
like to ask a question, please press *1
and clearly record your name for question introduction. Again, to ask a question
at this time, please press *1
and clearly record your name. One moment, please, to see if we gather
questions at this time. And currently, I'm showing
no questions at this time. Anthony Perry:
Okay, thank you. To summarize,
the FDIC will expand testing through the remainder of 2018. Working with
financial institutions and core processors,
the FDIC will continue testing the use of standardized
image loan data exports in live examinations. Process and technology
adjustments are expected and will occur throughout
the testing period at the FDIC. At the conclusion
of formal testing, the FDIC
will document results, and provide
additional information about near-term plans. We want to thank you
for joining the information sharing
call today. Keep in mind, this is
the beginning of testing. We look forward to
hearing your feedback and identifying the process
and technology changes needed to make
this capability valuable. If you are a financial
institution or imaging vendor that would like to participate
during testing, please reach out to
our FIVE Project Team at FIVE-- F-I-V-E-- which stands for
File Image Viewer for Examiners. FIVE@FDIC.gov. Or you can reach out to me
directly. My contact information
is in the fill. Operator, can we check
if there are any final questions, perhaps? Coordinator: Sure.
Give me one moment. And if you'd like to ask
a question, please press *1 and clearly record your name
for question introduction. One moment to see
if we gather questions. And it looks like
our first question will come from
Archenot Akkakouma. Your line is now open. - Hello, this is
Archenot Rounkama from Ellie Mae. I have a quick question. Will this deck be made available
after this call? Anthony Perry: Yes. We will
make the slides downloadable. And we'll check on
if that can be made available while we're still on the call. Archenot Rounkama: Perfect. And the second question
I have is, if we wanted to go ahead
and participate and Ellie Mae [indistinct]
is a technology provider for the mortgage industry. And so, if we wanted to
participate in this, do we just go ahead
and email FIVE@FDIC.gov? And then move forward
from there? Or is there
any sort of requirements that we can preview to see
if participation is something that we would like to--
if we would like to actually participate
in the testing effort? Anthony Perry: Okay, some of
that was a little broken up, but I think I got the gist
of your question. You'd like to know whether
you'd be able to participate and I would suggest
that you contact the FIVE Team at
FIVE@FDIC.gov. That's F-I-V-E@FDIC.gov. And somebody
from the project team will reach out to you directly
and have more conversations and help you figure out
where you are in the landscape and what would be needed
to participate. Archenot Rounkama: Perfect.
Thank you so much. Anthony Perry: Thank you. Coordinator: Our next question
will come from Lisa Berry. Your line is now open.
Lisa? Lisa Berry: Hi,
so just to review... Oh... yes, could you just review
the seven data fields again? Anthony Perry: Absolutely. The seven data fields
that we're asking for are the CFI number,
the CFI name, the account number,
the document name, the document description,
the document category, and the document date. And when you look at
the slide presentation-- whether now online, or whether you are
going to download it-- if you look at Slide Seven, it shows an example of how
we will be using that file. How we'll be reading that file. And so, you get an idea the-- of the concept of the way that the examiners are going to
be looking at that data. And that's why that data
becomes important-- those specific elements
become important-- so that we know what
we're looking at in the reader. Lisa Berry:
Great. Thank you. Anthony Perry: Thank you. Coordinator: And one moment
to gather last minute questions. It looks like I have
someone that is joining or recording their information. Please give one moment. Our next question will come
from Ashley Williams. Ashley Williams:
Can you hear me? Anthony Perry: Yes. Ashley Williams:
I was wondering if you know what kind of time commitment
this might be to participate in this? Anthony Perry: You know, it--
that's a good question. And the short answer is
that's an unknown right now. Some organizations will have different technological
capabilities than others. And kind of be more readily able
to kind of jump into testing or any broader implementation. You know, other organizations
will have to have an update from maybe
their service provider, a new capability provided. Something along those lines. So, you know, once
that early work is done-- and once you are capable
of creating the export file, you know,
once your core processor has provided you
that capability-- at that point, you know, our experience so far is
that it's a quick process. During pre-exam planning, they scope out the loans
that they'd like to include. And you go and identify
those loans. And theoretically, you click
"Export" and a file is created. And at that point,
we make contact with you and we facilitate the secure
transfer of the file. And hopefully it's a very,
very smooth, quick process. But testing is going to prove
all of that out during these next few
live exam tests. Ashley Williams:
Okay. Thank you. Anthony Perry: Thank you. Coordinator: Our next question
comes from Eric Butterball. Your line is now open. Eric Butterbaugh: Yes, thanks. My question is concerned
with the amount of data that we're talking about
pushing through. I mean, in terms of, you know,
these large files for-- you know, these loan files. How are you guys going to,
I guess, accommodate that? And I mean, we have concerns
today with our banks and their current throughput. So, have you experienced that
as an issue so far? Or how do you see direct
solutions moving forward? Anthony Perry:
That's a good question. You know, file transfers
and file sizes are also a concern for us. We are working with a secure
file transfer tool today-- called Globalscape-- that we will be able to
basically send an email to a point of contact
at the bank. And that designated
point of contact will be able to click a link
and transfer a file to us. But everybody will be limited
by the bandwidth that they have
available to them. So, file transfer size
is always a concern. Eric Butterbaugh:
And in our situation, we host all of our--
the data for our banks. So is that a case where the banks would need to
get the data from us and then push it up
to this secure transfer? Or would it... Anthony Perry: Okay, so you're
a core processing vendor, right? Eric Butterbaugh:
Yes. Yes, I am. Anthony Perry: Okay,
so in that particular case, I mean, all options
are on the table. But at that,
in this particular case, if you created the export file
as a core processor, and you've said,
I have got that data at my processing facility. And you do the export, and the data is sitting there
at the processing facility. You know, what's to say
that you can't give the bank the capability of remoting in
and releasing that data? Or authorizing you to release
that data from the exam. Again, these are conversations that you're going to
have to have with the bank about the level of control
that they want. But if you can cut a layer
of complexity out of the process by not transferring the file
to the bank and then the bank
transferring it to us, that may be an efficiency. Eric Butterbaugh:
Okay, yes. Appreciate it. Coordinator: Our next question
will come from Troy Harper. Your line is now open. Troy Harper: Hello.
Can you hear me? Anthony Perry: Yes. Troy Harper: Terrific.
This looks very promising. We're very grateful for this. One question I had, with the three proofs
of concepts-- you know, the POCs
that you did on this that you mentioned earlier-- can you briefly describe
any challenges you had? Anthony Perry:
Do you want me to? Do you want to tell them that--
one moment, please. Troy Harper: Sure. Anthony Perry:
So, I'm going to-- I've asked Megan Corey-- who's a subject matter expert
in this and she's on our project team-- on-- was very familiar
with the early testing. And I think
that she may be able to speak to some of the specifics. But I'll let her decide
that information and I'll push you over
to Megan right now. Troy Harper: Terrific. Megan Corey: Sure.
Thank you for the question. So just going back
in time a bit, working through
these proofs of concept is-- as Anthony mentioned--
the primary challenges were really determining,
you know, formatting the export
file appropriately. Again, mapping
those seven data fields based on what is
already available in a bank's
loan imaging system. So again, not-- trying not to
impact the institution but trying to do this at the
level of the service provider. And ultimately,
we did a couple tests by receiving the data and
validating it with our viewer. Which you heard Anthony
mention FIVE-- or the File Image Viewer
for Examinations application-- that is what is the examiner-facing
piece of this process. So, we determined--
after we pulled those-- these test files in--
if it all-- if it pulled into
the FIVE viewer correctly. And there were obviously
some troubleshooting processes to get that process correct, and have it appear
in the viewer appropriately. So obviously there was
some back and forth. But ultimately, I think
this is a fairly simplistic development process. And it's just making sure you have the appropriate data
mapped appropriately. And then the other
primary challenge-- as we are all well aware of--
is file transfers. So, this is something that we are exploring
as an FFIEC Group-- and at the different
regulatory agencies-- to see how we can
reevaluate the challenges associated with file transfer, especially as things
become more electronic in our exam processes. But those, I would say,
are the biggest challenges. Those initial hurdles
to get past. And then, obviously,
transferring the files as our previous caller
mentioned. Troy Harper: Okay, terrific.
Thank you very much. Coordinator: Our next question
will come from Michelle Chobaw. Your line is now open. Michelle, please check
your mute button. Your line is open. Michelle Chobaw: Yes.
Can you hear me? Anthony Perry:
Yes, ma'am. I can hear you. You might have gone back
on mute. Coordinator: Michelle,
please check your mute button. Your line is open. Anthony Perry: For anybody else
listening, the file-- the slides are available
for download now. Coordinator: Michelle,
are you still with us? Is your line open now? Michelle Chobaw:
Yes, can you hear me? Anthony Perry:
Yes. Yes, we can. Michelle Chobaw: Okay.
The question I have is, what is the preferred format
for the documents? Will it be a PDF document? Anthony Perry:
That is a great question. So, we took great pains
to not try to use some proprietary document type
or formatting type. This is going to be using
industry-standard XML. And I believe PDF?
One moment. Michelle Chobaw: Okay. Anthony Perry:
Okay, we can-- okay. So, I'm-- I've heard
that we have great latitude in the types of imaging files
that we can accept. But the data itself
is XML file formatted. So-- not to get
too technical with this-- but it's two different
types of data that is going to be created
out of this. One is the formatted text data,
if you will. And then the other type of file
is the image file itself. And when we combine
both of those in the reader, the text basically
points to the data. And that's what makes
the reader so valuable, to be able to consolidate
all of that. And, you know,
the value is that-- regardless of the organization
that you're in-- the XML and the images
are read in a consistent matter. It takes the uniqueness
of your, you know, the core processing image viewer
out of the equation. And that is really
the secret sauce that allows bankers to realize
the benefit of, you know, off-site or on-site exams with reduced burden
to the organization. Because in the past, people would have to,
you know, examiners would gather
around a table in a room. And maybe
there might be a terminal in the room with them. And they'd have to use
the bank's software and only have one terminal
to do it on. And then we'd have to ask,
you know, financial institutions
to bring documents or maybe copy something off. Or we'd have to
print something and then scan it
into our systems. This greatly
simplifies that process and expands the ability
for doing loan review to more than one person
using the one terminal. Or few terminals
that are in the building. Michelle Chobaw:
Okay. Thank you. Anthony Perry:
Okay. I am told that-- while we can--
we have great latitude in the types of image files
that we accept-- I believe that PDF is preferred
for the image files. Michelle Chobaw: Okay. Anthony Perry:
And I do believe also that there's several
opportunities to compress PDFs. I think there's a lot of
industry software out there that will do that. So the--
we're going to be doing it when we get the files for sure. And I'm believing
that image processors may be doing something
on their side also with that. Michelle Chobaw: Okay. Anthony Perry:
Thank you for the question. Michelle Chobaw: Thank you. Coordinator:
And our next question will come from Angela Hansen.
Your line is now open. Angela Hansen: Thank you.
I just had a question about how much of the file
you'll be requesting. Like the file in its entirety
with all the historical data? Or most recent? Because I know somebody
asked earlier about file size. So how does that work? Megan Corey: Hi.
So, to address that issue, it really is dependent
on the type-- the service provider
that you're working with or that provides
your loan imaging software. Because some software has the ability to customize
the exported packages while others do not. So that's depends. And I know that's
an unfortunate answer. But, you know, really,
we need to make sure that we're obtaining
the documents that allow us to conduct a comprehensive
review of the loan file as we would in any other way that we would
conduct the reviews, whether they be paper files, or working through
the bank terminal, or anything else. So really, we need to make sure
we have a comprehensive picture of the borrower's
financial condition. Any obviously collateral
documentation to support that. Now, if you have the ability
to customize, we're not against that. We obviously
just need to make sure we have the information
that is applicable to, you know, the most recent
renewal or new loan. And it is possible
that historical data or closed loan data
may not be necessary. So, you may be able
to trim it down. It just depends on that
capabilities of your software. Angela Hansen: Okay.
And then, what about like information [indistinct]
system and stuff like that? Are you [indistinct] that, or just loan file documentation
that you're looking for? Megan Corey: This process
would be specific to the loan documentation. Angela Hansen:
Okay. Thank you. Coordinator: Our next question
will come from Renee Prooft. Your line is now open. Renee Prooft:
Yes, thank you. I have a question on
whether or not multiple exports
would be able to be received? Meaning, what happens if the organization uses
a couple different software depending on the division
that you're working with? Megan Corey:
Another great question. Ultimately-- through our survey
of institutions-- we've had our examiners talk
about loan imaging practices through the past several months to try to determine
who's involved in this market and what the different solutions
are for imaging loan files. And we have identified that several banks do use
multiple imaging platforms, whether it be
for different loan types or secondary market loans. So ultimately, that's something that we are
trying to work towards and we hope to implement
in the near future. But in the current
testing phase, it would not be able to-- our current process
would not be to-- able to accommodate
multiple exports. But it is an ultimate goal
for future releases. Renee Prooft:
Okay, thank you. Megan Corey: Thanks. Coordinator: And one moment,
we have another participant recording their information. Our next question will come
from Christy DeYoung. Your line is now open. Christy DeYoung:
Hi, I had a question about the document category?
Are... Anthony Perry: Yes. Christy DeYoung: ...we required
to use a specific set? Or do we get to use
our own categories and you can pull those out? Megan Corey:
So, this is something that you can customize. But also, not all
imaging software providers have a doc category area
within their imaging systems. So, this is not a required
element of the export process. So, if you currently do not
categorize your documentation, you would not need
to provide a category specifically for our purposes. It just allows an extra layer
of organization, but if it's not available,
that's okay as well. Christy DeYoung:
Okay. Thank you. Megan Corey: Sure. Anthony Perry: And
these types of things, they-- we've uncovered them
as we start our discussions with financial institution
and the service provider, and we figure out
what that imaging platform really has in it
and what it does. And as we go through
those conversations, we figure out, you know,
what maybe document name would map to
in that new imaging platform. Or what the CFI name
might map to. And we try to get
that same type of data. Coordinator: And currently,
I have no additional questions at this time,
but as a reminder, if you would
like to ask a question, please press *1
and clearly record your name for question introduction. One moment, please, to see
if we gather more questions. Anthony Perry: Okay, operator,
it sounds like we don't have any more questions
on the line right now. I'm sorry,
was there one more? Coordinator: We did.
We have one person recording their information
right now as we speak. Anthony Perry:
Okay. All right, sure. Coordinator: And it looks like
Betsy Johnson, and then there's one more
after Betsy Johnson. Your line is open, Betsy. Anthony Perry: Wonderful. - Thank you.
This is Betsy Johnson. We have been handling exams with
our examiners of digital files through FDIC Connect. And as I know our institution--
and others-- you know, thank you
for expediting this project and standardizing the project. On you-- we very much
look forward to that. My comment that I have is-- I assume that part of this
will be in-- I'll tell you, right now, currently it's the time
constraint on our staff to be able to get
the files together. So, we have asked our examiners
in the future, please allow us enough time
to do that so when they're ready
for our examiner information, we've had enough time
to prepare for that. Do I assume that this is
part of the process that this will help
standardize that or streamline some of that? Anthony Perry: Well, I think
it really depends upon the implementation that your
service provider gives you. That piece of software
that they provide that allows you to do this. But we plan on building time
into the exam process right up front. So that we can send you the
request for specific information and that you'll have
any opportunity to go in to your system
and theoretically identify the loans,
click them, click on Export, and have time
to transfer the file. So, you know, I think
that what you're going to find is this standardization
does speed that process, does simplify that process. I think that was your question. Betsy Johnson:
That answers my question. Thank you so much, and I
appreciate that consideration. Anthony Perry:
Our pleasure. Coordinator:
And our next question comes from Matt Graff.
Your line is now open. Matt Graff:
Hi. Thank you. My question is just
regarding the slides. That-- you mentioned
that the slides are now available for download. Where are the slides
available for download? Anthony Perry:
That is a good question. Hold on just one second, and I'm seeing if I can
get the information for you. Hold on. Matt Graff: Thank you. Anthony Perry:
Are they seeing it on-- So I'm told
that if you are looking at the slides online now, that there should be a file
transfer capability right there to where you can
download the slide deck. Matt Graff: And so, I had
joined the WebEx presentation. I don't know if there-- is there another link
that I should be going to, to view the slides online? Anthony Perry: No, I would say
using the WebEx link will get you there, and you
should be able to do it. But you can also feel free
to reach out to the FIVE team at FDIC-- I'm sorry,
FIVE@FDIC.gov. And we can also
email you those slides. Matt Graff: Okay.
Great, thank you. Anthony Perry: Our pleasure. Woman: So, I don't... Megan Corey: And just to add,
I'm being told by our operator here that there should be
a file transfer dialogue box on your screens
if you're in the WebEx. And you can just select
"Download" from that screen. And-- just to reiterate
Anthony's comment-- if you're having trouble
accessing these slides, please feel free to email
the FIVE@FDIC.gov mailbox and we'll make sure
you get a copy. Coordinator: And currently,
I have no additional questions at this time. Anthony Perry: Okay. Well, we want to respect
everybody's time and say that if you have additional
questions or comments-- you know, as you're riding
your exercise bike tomorrow or walking into work--
feel free to email us. Reach out to us.
You can contact me directly. You can contact
the FIVE team at the email. And we are happy
to answer questions or help you get started with
the process of finding out whether your organization
is capable or would like to join
the testing process. With that said, we want to thank you
for joining today's call. We are here to answer
your questions. And if there's anything
we can do to clarify, please let us know. Thank you very much
for your time. Coordinator: Thank you again
for your participation. This-- this concludes
today's conference. All participants
may disconnect at this time.
