Great Place To Work

How Lenders Can Speed Up Mortgage Underwriting Process

In: Blog

As lenders process loans, the role of an underwriter is critical. All of us know that underwriting usually consumes a lot of time and costs and usually goes through multiple iterations. If a lender can bring in improvements during the pre-underwriting stage, then this can have a large impact on the productivity of underwriters.

At the pre-underwriting stage, teams need to manage a lot of paperwork, including document verification, stacking and indexing the loan papers received, preparing and sending the initial mortgage disclosures to the borrower, etc. This can get very cumbersome for in-house teams.

Challenges for Lenders in Cost of Underwriting

Mortgage underwriting is a significant step in the mortgage process and the cost paid for these services is also extensive. Direct underwriting fees payable could be in the range of $400 to $900, depending on the lender and loan type.

Since this amount is substantial, it is essential that the services of an underwriter are utilized in the best possible manner which means all the requisite documents need to be in place for the underwriter’s scrutiny to speed up mortgage underwriting. If the lender (& many times the MLO) is handling the document verification process, the onus is on him to ensure that the best quality customer loan profiles reach the underwriter’s table for consideration. In case of missing documents, it is the lender’s duty to co-ordinate with the borrower for the missing documents.

How a Pre-underwriter Review can Optimize the Process

A pre-underwriting review is one of the best ways to identify the existence of proper qualifying factors or a lack of them for the mortgage loan application. Preparing for pre-underwriting reviews helps filter qualified loan applications earlier in the loan originating process. Only the files of applicants that meet the pre-underwriting qualifications are sent through to the lender’s loan fulfillment centre, in turn speeding up mortgage underwriting.

Pre-underwriting reviews help filter out all the applications that have no scope of being funded and also work to getting any missing documents that have remained pending. This means a mortgage lender will have a comprehensive underwriting process, focusing only on those applications that qualify for a home loan.

Preparing for pre-underwriting reviews also goes a long way in reducing production costs as underwriters do not end up spending too much time on unqualified applications which offer the advantage of a faster time to close and speeds up mortgage underwriting.

The Role Mortgage Processing Vendors Play in Pre-underwriting

The process of reviewing the loan file before sending it ahead helps identify anomalies early on in the process. Since a meticulous review of the potential borrower’s file gives an objective insight into his/her profile, this also means that all the documents have to be in place. This is where mortgage processing service providers come into the picture. These are companies that can handle the verification of all information that is supplied by the customer in vital loan documents.

Mortgage processing service providers check customer credit records like FICO scores and tax return documents to ensure he/she has the required financial stability to make monthly payments for the loan. They are the ones who coordinate with the borrower in case documents are missing. They provide pre-underwriting support by following a checklist-based approach to ensure that all the critical aspects are covered in the file. Strong pre-underwriting support services are vital to establish the accuracy and speed needed to expedite the underwriting process. Once pre-underwriting is in place, the underwriter has to focus only on relevant decision-making.

How PrivoCorp Can Help

Mortgage process service providers like PrivoCorp have the right blend of mortgage experts and industry best practices to offer pre-underwriting support. Their scrupulous review and validation of the loan prequalification helps improve and speed up the underwriting process. The company takes all the steps necessary for diligently verifying information to facilitate the underwriter’s decision-making process.


If you are looking for an experienced mortgage pre-underwriting services company to speed up the underwriting process and drive improved efficiency, PrivoCorp is the right partner. Get in touch with us to outsource mortgage pre-underwriting services to our experts. Talk to us today!

Leave a Reply

Your email address will not be published. Required fields are marked *

Ready to Grow Your Business?

We Serve our Clients’ Best Interests with the Best Marketing Solutions. Find out More

Talk to an expert

Congrats on your first step of reducing your mortgage operation’s cost. Please submit your contact information here, so that one of our experts will get in touch with you.