The mortgage processing industry is intensely regulated and one of the biggest challenges is to keep up with changing fed regulations. The industry demands extremely proficient and expert processing teams who can help lenders resolve and address the growing challenges in mortgage processing services. It is a good idea for lenders to outsource the mortgage process to a mortgage processing services partner who can provide the needed support for the business.
Here’s how mortgage processing services partners can help in addressing the challenges that arise:
1. Reducing Turn Around Time (TAT)
Even while loan processing is a complicated process, customers always look for quick results. There are several procedures and formalities that can be time-consuming like title checks and verifications, valuations, tax reports, etc. Lenders are expected to process the loan fast and do so within the compliance framework. In the face of this, one of the biggest challenges lenders face is to keep the TAT in control.
Outsourcing mortgage processing is one of the best ways to improve efficiency in loan processing. Mortgage processing services companies have a skilled team of experts, the right technology and resources to accomplish the task in time. Reduced TAT could also lead to enhanced customer experience.
2. Efficiency in Pre-underwriting
The pre-underwriting stage is one of the most important elements of the mortgage process. The stage involves a lot of paperwork including document verification, processing, stacking and indexing loan papers, preparing and sending the initial mortgage disclosures, etc. All these functions require experienced hands. Mortgage processing services partners have such staff on board who can take care of all the activities in the pre-underwriting stage.
3. Workforce Flexibility
In a market where talent is dear, lenders need to find solutions that work in terms of providing experienced hands as well as proving to be cost-effective. The mortgage process is not the same all throughout the year. It faces ups and downs depending on locations, time period and different types of loans. This means that at some times, you may require intense manpower and sometimes the requirement may be low. Hiring permanent manpower may prove to be expensive during the low business. The solution to this is partnering with a mortgage processing service provider who can provide staff when required. As a lender, you can collaborate with them as and when you need depending upon your business requirements.
4. Regulatory Compliance
Handling compliance scenarios is another very important aspect of a mortgage process. In a highly competitive environment, mortgage companies need to know and follow all the rules and regulations. Tax and other legalities need to be managed carefully and business policies must be revised as per legal declaration to overcome lapses. Mortgage processing partners have expert teams that can guide on these matters. By partnering with them, the compliance issues will be taken care of smoothly.
5. Document Processing
Lenders are required to process a lot of documents as a part of loan processing. Scanning, verifying and processing these borrower documents is an important part of mortgage document processing. Preparing loan papers with foreclosure conditions and sending initial mortgage disclosure forms needs experienced people. Mortgage process partners can provide assistance to process these documents in the most effective manner.
To handle the many challenges in mortgage processing, lenders can benefit a lot by working with a technically skilled and experienced mortgage processing team. PrivoCorp has expert teams that specialize in mortgage processing services. Talk to PrivoCorp today!