How to Choose an Efficient Underwriting Service Provider?
October 18, 2017
An underwriter’s job is to assess credit risk and borrower eligibility. It is the intricacy of their job that puts them under immense pressure to generate profitability, at the same time increase new business opportunities.
Following the lending crises of 2007, many companies now seek disciplined underwriters that can provide compliance-friendly streamlined procedure. Even though there are many underwriting service providers, it is important to note that each company has its own process with which they examine a loan file with regards to federal guidelines.
With so many diversified systems out there, finding a disciplined underwriting service provider can be akin to looking for needle in a haystack! However, with these simple tips, your search will not only become easier but can also be targeted towards experienced companies.
Evaluate the Experience
Only a seasoned company will know the importance of respecting deadlines and staying methodical throughout the underwriting process. This is why evaluation of experience is one of the the most crucial factors in selecting an underwriter. You can ask the vendor to provide you with a list of clients they have serviced in the past. Looking into previous clients will give you a good look into vendor’s efficiency and reputation. It is also a good idea to speak to some of their previous clients to validate their work ethic.
Perform Thorough Due Diligence
Don’t just go by their word, perform your own checks to know about the service provider’s underwriting experience. Find out how long they have been in business and what is their track record with previous clients. The company that you choose to work with should have detailed understanding of the underwriting process. The best way to determine the vendor’s competency is through research into their company history.
Check if Service Provider Maintains Underwriting Discipline
Underwriters have a lot of pressure due to increasing competition and ever changing mortgage guidelines. Your potential outsource partner should not have a history of compromising work quality for the sake of short-term profits. You can also ask about their work volume to ensure that they are not biting off more than they can chew, thus jeopardising underwriting standards.
Innovative Underwriting Methods
Even though underwriting process is slowly transitioning to automation, the role of underwriters continues to remain crucial. A credible underwriting service provider is the one that has full working knowledge of innovative underwriting methods. They should also be able to come up with alternative solutions to meet your business needs, that too without ever risking the underwriting discipline.
Look for Service Providers with an Edge
Underwriting professionals are faced with situations where they are required to make comprehensive decisions on loan accounts. These decisions have the ability to affect lenders’ profitability. A reliable service provider is the one that can find new and innovative ways to keep the lending business profitable, get more business into the fold and maintain underwriting quality at the same time. To keep up with these standards, underwriting service provider needs to have superior knowledge of the processes and federal laws. This empowers them to make right underwriting decision. Make sure that the vendor and its employees are well trained on latest underwriting practices.
Ask about Technology
Once you have a list of potential service providers narrowed down to a select few, your next question from the vendor should be about the technology they use. They should have adaptable technology that can cater to all kinds of mortgage underwriting processes. Their systems should be compatible with the underwriter and capable of providing accurate analysis after reviewing loan file data.
Underwriting is extremely crucial in a home loan application. Any flaw in the process flow can generate false analysis that can lead to loan rejection and customer dissatisfaction. This is the reason why underwriting is best handled by experts who understand the process and its complexities. Expert Mortgage Assistance has years of experience in providing mortgage process outsourcing services. Over the years, we have perfected the underwriting process and today provide most reliable backend support to number of clients.