Challenge: Radian’s existing data center had disparate systems maintaining individual copies of the same mortgage documentation. This siloed approach created inaccuracies and inefficiencies through the mortgage insurance processing life cycle.
Solution: Cloud Application Modernization Services from Hitachi Vantara designed and built a platform on the Amazon Web Services (AWS) cloud. This platform leveraged a large portfolio of popular AWS services, including Amazon EC2, S3 and DynamoDB, to help automate the end-to-end process.
Radian Group Inc., headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. Radian’s core business provides private mortgage insurance to protect lenders from default-related losses, facilitate the sale of low-down-payment mortgages in the secondary market, and enable homebuyers to purchase homes more quickly, with down payments less than 20%.
These services help promote and preserve home ownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages, and facilitating the sale of low-down-payment mortgages in the secondary market.
Radian’s Cloud Story
Every system within Radian required accurate and latest mortgage information to assess risk and perform business operations. Each system was maintaining individual copies of same mortgage information, creating inaccuracies and inefficiencies through the flow of mortgage insurance processing life cycle. A similar challenge also existed in the mortgage industry with different entities and partners accessing information through the flow of mortgage credit. The sheer physical amount of shared mortgage information and the complex interactions between customers internal and external to Radian exceed the agility, capacity and capabilities of traditional on-premises technologies.
To combat this, Radian made the decision to develop a centralized platform for customers to utilize without the need to manage or synchronize information against numerous systems. The company also decided to adopt cloud computing, with its ability to scale compute and storage capacity, to increase innovation, reduce the manual intervention needed to process information, improve the agility in offering their services, and reduce cost.
Radian Chooses Partners
Radian chose the Hitachi Vantara cloud services team as its cloud computing and consulting partner in its modernization initiative, to take advantage of the on-demand and elastic infrastructure offered by AWS. The team had demonstrated expertise in assisting Radian in translating the business problem into a viable technical workflow solution (see Figure 1). This initiative, now called Cloud Application Modernization Services from Hitachi Vantara, modernized the way information is managed to improve agility and innovation. The team worked closely with Radian to architect and build a platform that runs entirely on AWS cloud. It also leverages a large portfolio of AWS services, including popular services, such as Amazon EC2, S3 and DynamoDB, to help automate the end-to-end process.
Internal and external line of business (LOB) applications interact with the platform by first getting a token from a custom token vending machine (TVM) to encrypt and ingest the information with tokenized personally identifiable information (PII) values and files, directly to Amazon S3. An Amazon Simple Workflow (SWF) service is kicked off to automatically ingest, organize and populate various data stores. Such data stores may include Amazon DynamoDB for workflow metadata, Amazon Relational Database Service (RDS) to record transactions, and to daily Operating Data Store for reporting and analytical functions.
The platform leverages all of the built-in security features offered by AWS (such as Amazon Elastic Block Store (EBS), S3 encryption and Amazon Key Management Service). It also leverages third-party solutions for above-the-hypervisor controls, such as Sophos UTM, to meet the stringent security needs of the customer’s business partners.
Although modernization is a multiyear effort, Radian’s leadership and AWS have given the Hitachi Vantara cloud services team a big thumbs up for the accomplishments to date (see Figure 2). The initiative began as a “Go/No-Go” decision after a six-month period from start, due to the scale of the problem and uncertainty in the maturity of the technology from a capability and security perspective. The team was not only able to provide confidence that the nonprofit’s goals were achievable, but also helped the organization reduce the time to market in being able to offer some strategic products.
Team consultants and solutions architects recommended best practices to the nonprofit, especially when it comes to security, and went the extra mile to ensure the architecture is customized to meet the nonprofit’s security needs. The team also participated in design discussions around a custom secure vault solution, on-premises, to tokenize PII information in the ingested form before landing in AWS S3. It collaborated to build an elastic, secure and compliant processing framework on AWS using DynamoDB.