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How Mortgage Process Outsourcing Can Protect Lenders from ‘The Great Resignation’

How-Mortgage-Process-Outsourcing-Can-Protect-Lenders-from-The-Great-Resignation
In: Blog

Pandemics change human societies at many levels. The COVID-19 dramatically restructured the work model that had been around since the start of the industrial revolution. During the past year and a half, workers’ expectations have evolved. And according to a new Bankrate survey, this shift in mindset has over half of Americans planning to look for new jobs. Mortgage Process Outsourcing

The survey’s results show that workers are seeking more opportunities for career advancement and much more flexible working conditions and the ability to work remotely is at the top of their minds. In addition, a Fannie Mae study reveals that 77% of lenders expect more employees to request long-term work-from-home arrangements post-pandemic.

According to the U.S. Bureau of Labor Statistics, in September 2021 alone, a concerning 4.4 million Americans quit their jobs. accelerating the trend known as ‘The Great Resignation.’ This ongoing issue has affected companies across multiple industries for months, and the mortgage industry is no exception.  Mortgage Process Outsourcing

  • Employees between the ages of 30 & 45 have had the greatest increase in resignation rates, increasing more than 20% from 2020 to 2021
  • 54% of employees feel overworked and 39% feel exhausted

Mortgage Process Outsourcing is the Solution

Some claim the Great Raise 2022 is an interim solution to the Great Resignation. However, all companies cannot afford to implement it; an outsourcing partnership is their best option. Others term a more permanent solution to be changing managers’ attitudes entirely, in addition to all modern job perks. As they grapple with attracting any form of talent, new or old, outsourcing is the alternative that can help manage retention and rising employment costs simultaneously.

So, Let’s delve into details on how mortgage process outsourcing is the solution to “The Great Resignation.”

Automation Technology Improving Accuracy

With automated systems, tasks are completed faster with improved accuracy. The mortgage process entails loads of documentation, and manual processing results in various errors. Several mortgage service providers like PrivoCorp employ artificial intelligence (AI) and machine learning (ML) to automate several components of mortgage processing and streamline the overall origination process.

Guaranteed Compliance

There are several rules and regulations that control the mortgage sector. Every data and process must conform to the standard rules for the mortgage to be successful. Mortgage compliance exists to ensure lenders obey the rules and avoid possible fraudulent activities.

Lenders can reduce processing time, risk, and over-reliance on compliance staff by outsourcing mortgage compliance to a trusted service provider. With up-to-date technology and process experience, mortgage service providers like PrivoCorp will do the following.

  • The first evaluation of all accessible data or papers before an in-depth assessment is done based on the borrower’s bank accounts, tax records, etc.
  • Check loan eligibility by examining FICO score, existing loan information, payment defaults, etc.
  • Review 3rd party activity such as the acts of appraisers and other insurance details
  • Verify all borrower’s data with verified technology

Mortgage Domain Expertise

A beginner or business with limited experience will find it hard to survive in the mortgage sector. The industry includes various technicalities and laws that necessitate a high level of expertise. Unfortunately, not all lenders have highly experienced employees at their disposal. But outsourcing to a mortgage service provider is a way for lenders to employ personnel with extensive subject expertise in the business.

Leveraging the strong domain expertise of these service providers, lenders can experience.

  • Quality service at a reduced cost
  • Perfect compliance
  • Reduced audit risk
  • Improved turnaround time

Quick Mortgage Process at a Reduced Cost

Each phase of the mortgage process takes a good amount of time if conducted manually or without the correct strategy. It becomes worse when faults are identified in the documents or in circumstances of incomplete data.

Outsourcing the mortgage process to service providers will trigger a streamlined procedure resulting in greater efficiency and accuracy. In addition, when these components are put in place, there is a speedier turnaround time.

The best part is that the overhead cost is decreased overall because the service providers charge a reasonable rate, and lenders do not have to repeat a process due to inefficiency. Mortgage Process Outsourcing

Summary

The outsourcing of the mortgage process is a beneficial approach every lender may take. It enhances efficiency, compliance, helps to scale and grow, decreases cost, and improves turnaround time.

Mortgage service providers like PrivoCorp make use of advanced technologies to automate mortgage operations. They leverage their deep subject matter expertise to offer an excellent mortgage experience for both lenders and borrowers.

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