The mortgage industry has been evolving since the past few years amidst a lot of regulations. In the US, today, a median borrower puts 5% down payment for their home purchase, as compared to 20% about a decade ago. This aspect, paired with price wars, new CFBP regulations, and other accompanying challenges, has resulted in many mortgage lenders looking positively towards outsourcing services as an option. Mortgage loan processing companies, who specialize in offering these outsourced services are able to cut down costs and improve productivity.
There are several benefits of hiring a mortgage loan processing company:
1. Expert Help in Organizing and Collating Documents
One of the major benefits of partnering with a loan processing company is that such companies can offer immense expertise. These highly qualified individuals take care of all the tasks related to the mortgage process including collating and organizing all the necessary documents from the borrowers. This can otherwise be a time-consuming process. Loan processes require a variety of documents including proof of employment, Federal tax returns, bank statements or balance sheets, etc that determine the borrower’s creditworthiness.
2. Reduced Overhead Costs
Outsourcing is a great way to close more mortgages without the need to hire an in-house team for your loan processing needs. As all of us know, timing is a very important factor in mortgage loans. In peak times, you may require more manpower, and in some other times very few. Flexible manpower is required for this business.
If you hire permanent resources, then during low business activity, you will have to deal with higher fixed costs. Lenders need to come up with some cost-effective ideas. In-house resources cannot be trained for every new specification and in every new technology. The best approach is to partner with a mortgage processing services company. This will help reduce the cost overheads of the lender by a significant amount.
3. Enhanced Customer Satisfaction
The mortgage industry has an overtly competitive landscape. Lenders are in a fierce race to improve customer satisfaction and stay ahead of the competition. Once you partner with a mortgage processing company, they will ensure that all your back-office processes are handled in a streamlined fashion and you are able to close faster. You can then invest all your time to improve customer relations which in turn will result in enhanced customer satisfaction.
4. Reduce Turnaround Time
Mortgage lenders always have turn time as one of their major challenges. Regardless of how complicated loan processing may be, the borrower is always looking for faster closure. However, title checks and other third-party verifications can be very time-consuming. Lenders are not only required to process the loan quickly but must also do so within the compliance framework. The best way to keep loan processing efficient is by outsourcing to a capable mortgage service provider. These professionals have the right technology, experience, and resources to finish the task in a timely manner.
5. Access to Integrated and Automated Systems
Lenders can benefit heavily by adopting automation where possible throughout the loan process. Hiring a mortgage loan processing service provider offers access to some of the latest integrated and automated systems. These systems may prove to be expensive and their installation could be time-consuming if managed inhouse. Mortgage loan processing companies are equipped with the requisite infrastructure to carry out the processes. It is therefore advisable to outsource work to them since they can offer a seamless digital experience to customers.
6. Comprehensive Credit Check
A third-party mortgage loan processing partner will ensure that as a lender you are not required to follow up with your borrowers for credit checks. At a time when efficient mortgage loan processing is becoming a challenge with the constant need to keep up with new regulatory compliance, high costs, changing technologies, and tighter budgets, mortgage loan processing companies can take care of all these aspects.
7. Streamlining Complex Processes
Often it is seen that lenders go back to borrowers with certain loan modification schemes to avoid loan foreclosures making the entire process much more complicated. There is now a great need to ensure that such processes are simplified and streamlined to benefit lenders as well as borrowers. Mortgage loan processing partners bring onboard a vast experience of loan verification with staff that is trained to streamline the entire process. This helps lenders to keep up with the changing demands and improves their overall efficiency.
8. Leverage Modern Technology to Improve the Mortgage Process
In today’s fast-evolving mortgage landscape, it is best to embrace digital technologies such as Artificial Intelligence (AI), Robotic Process Automation (RPA), Chatbots, etc to gain a competitive advantage. One of the most important advantages of outsourcing mortgage services is access to the latest technology. Mortgage loan processing companies can offer seminal digital experiences that prove to be driving forces in improving loan processing time, quality and cost.
Mortgage processing partners have a deep understanding of compliance and regulatory issues. Hiring a mortgage loan processing company can prove to be extremely advantageous to the lender.
Companies like PrivoCorp offer customized solutions to meet the lender’s requirements and business models. Moreover, PrivoCorp understands the sense of urgency in these loan processing transactions. Every action performed by different members of the team is done keeping the urgency in mind. Wouldn’t you as well like to have access to a superior mortgage processing experience?
Come talk to PrivoCorp now!