Underwriting mortgage loans is a comprehensive and time-consuming process. As more small and medium-sized banks look to consolidate and condense operations and overhead costs, they are turning to outsourcing mortgage processing as an effective management tool.

Reduces Bank Staff Load

Small and medium-sized banks often don’t have the staff to efficiently and adequately manage parts of the mortgage loan process. As a result, staff often feels spread thin and overwhelmed by attempting to handle all portions of the loan. Although there are many qualified underwriters, loan officers, and loan processors, many banks cannot afford the high cost of full time salaried professionals for these tasks. Mortgage outsourcing is an excellent solution to reducing workload, keeping costs down, and meeting customer satisfaction and company goals via efficient processing.

The growth in mortgage outsourcing has other benefits for banks. The need for part-time contractors in other countries to complete necessary processing tasks has led to an explosion of qualified individuals competing for your employment opportunity. Now, banks can take advantage of the skill set and experience of an underwriter without the burden of a full time in-house employee. Paying the underwriters by project or by hours cuts down on overall expenses, leaving the salaried staff in your in-house operation to focus on bigger goals.

The rise in remote hires and business transactions completed electronically widens your field of potential employees while keeping critical functions internal. In-house employees can turn their attention to core needs while keeping the overall process as functional and efficient as possible. You’ll benefit from happier employees who are able to work with key tasks and process information more quickly and your bank will be able to handle a busy workload without sacrificing the quality of the customer service you’re used to providing.

Better Service for Customers

With remote workers, it’s like providing around the clock service for your customers. Since outsourcing companies are typically on opposite time schedules than employees in the United States, American employees can arrive to work finding that many requirements were completed “overnight” by remote staff. This helps to keep the process streamlined and smooth. Spend time training employees on both ends about timeline expectations and setting clear goals so that both units can operate effectively on their own.

Remote underwriters are experienced professionals that typically have advanced time management skills due to their training and ability to juggle several contracts at once. When trained properly, they can serve as an important cornerstone of your team. Conducting the necessary background research is very important for determining which teams are the best fit for your bank. Obviously, security and protection of information are both concerns that the outsourcing mortgage processing company should be able to address and manage.

Find out up front how they typically operate and ask for references if necessary.

The underwriting outsourcing team can only be effective if they are clear on your business practices and meet the deadlines and goals you have for processing. After choosing your company and investing time in training and setting expectations, prepare to save valuable time and money.