The mortgage industry is a volatile and evolving industry. To adapt and respond proactively, it’s good for lenders to explore mortgage process outsourcing options.
This has become even more important in recent times. Low mortgage rates led to a major rise in demand and a surge in refinance activity resulting in massive workloads for lenders. However, a number of lenders could not scale and adapt to these changes. The pandemic added to the chaos with remote working and most lenders managing with minimal staff.
It became necessary for lenders to join hands with the right kind of mortgage support partners. However, as a lender before you decide to choose companies who offer mortgage processing support services, it is important to check these 6 things:
Technology-Backed Infra To Support Operations
A modern automated loan process provides several distinguished advantages in the form of stellar customer experience, improved accuracy in decision-making, and obliterating paper documentation. Technology makes it possible to accelerate all stages of the loan cycle. By replacing manual steps with automation and by moving from paper-based transactions to digital transactions, lenders can deliver an improved user experience and also improve the speed and accuracy. Digitization also helps process a larger number of loan applications with the existing resources while eliminating human errors. It reduces delays and costs associated with paper processes and enhances the loan performance. Lenders need to partner with the right mortgage process outsourcing companies that offer a strong and robust digital footprint.
Mortgage Domain Expertise
In the highly-competitive mortgage landscape, lenders need to work with partner companies that have a thorough understanding of the mortgage domain. They should have professionals who can contribute to boost the value delivered to the client. When partners possess strong mortgage domain expertise, they offer a major advantage to ensure that lenders can get what they want to be done within their requisite timelines. Also, the availability of highly qualified resources and their familiarity with the lender’s processes helps while handling high volumes. Mortgage processing support services can also help seamlessly manage the regular operations of lenders while the latter focus on other important aspects like customer relationships and business growth. The prime task of mortgage process outsourcing companies is delivering dynamic solutions customized to best meet the business objectives of the lender.
Flexible Pricing Models – Pay Only for Funded Loans
Mortgage is a multi-level process that includes several steps like pre-approval, mortgage application, loan processing, underwriting, and closing. However, the procedures and time involved between the mortgage origination and closing are intense and it is likely at each step that the borrower may decide to back out for whatever reason. But for each loan originated, the lender still has to incur costs on processing the papers. Then, if the loan is not closed, the processing fees invested by the lender are a waste. There are several Mortgage process outsourcing companies that offer ‘pay only for funded loans’, which means that partner companies will charge the lender processing fees only for the loans that are actually closed. In such a case, mortgage process outsourcing companies take up the responsibility of speeding up the decision-making process, reducing the chances of a borrower bailing out and closing a maximum number of loans. The lenders will have to pay only on funded loans and can skip incurring costs on loans that are not closed.
Ability To Engage With Borrowers for Missing Documents
Through the mortgage process, incomplete files mean increased costs, delays in meeting closing dates, and annoyed clients. It is, therefore, important that all the requisite documents are in place to speed up the process. It helps to seek mortgage processing support services for a more holistic and watertight process. Mortgage process outsourcing companies can help maintain regular communication with the borrower. They can comprehensively engage with the borrowers and take them into confidence so that the process remains smooth and easy. Through interactions with borrowers, all the documents can be in place before the process goes for underwriting. This way, even the underwriter’s precious time and resources are not wasted.
Ability To Scale
Mortgage process outsourcing companies also enable clients by combining process performance improvements with global delivery capabilities that allow maximizing the scalability of mortgage operations. The end result is that lenders can experience constant improvisation in the mortgage life cycle process. Considering the recent scenario where many lenders could not handle the large work volumes and were unable to scale up, mortgage process outsourcing is an important requirement.
Multi-State Foot Print
It is important to partner with companies that have a multi-state footprint and wider reach. This way lenders can seek help in developing cutting-edge products and services and take on new challenges irrespective of geographies. All the branches can remain closely aligned with the lender’s company and focus on business objectives and priorities while delivering stellar innovation.
Mortgage process outsourcing is an essential service that lenders can leverage for some solid support. Partnering with companies like PrivoCorp can help you reduce your closing time by 30% and your operational cost by 50%. We are a one-stop-shop for end-to-end mortgage fulfillment and we offer a host of mortgage services like pre-processing, processing support, mortgage closing support, mortgage post-closing support, appraisal support, mortgage title support, underwriting support, and many more. Get in touch with us today!