Lenders and brokers are already incredibly busy handling increased volumes for processing, underwriting and closing. One of the options to relieve pressure and accommodate this increased workload is to partner with an outsourcing company. Lenders and brokers are able to insert these options into their business model to reduce wait times and continue to provide quality service. Companies such as Expert Mortgage Assistance offer services like contracting processing, underwriting, and closing options for those lenders overwhelmed by their current volume.

What is Contract Processing/Underwriting/Closing?

These are services provided by an mortgage process outsourcing company allowing lenders and brokers to complete their business needs both onshore and offshore. With significant experience in the mortgage industry, these providers have a plethora of resources at their fingertips for streamlined solutions. Often, these resources are provided at a much cheaper cost and at the same or better productivity letter than the in-house group.

Why should you Outsource Mortgage Back Office Services?

The mortgage industry is characterized with factors that are extremely dynamic such as regulations, economic environment, among others. For instance, the current turbulent economic conditions induced by the Covid 19 pandemic have created cracks in the normal mortgage process flow. This has reinstated the importance of depending on professionals to execute mortgage processes. Here’s a look at some of the benefits of outsourcing mortgage back office services.

Minimal TAT The iterative process flow in mortgage services elongates the entire process which may lead to a borrower bowing out in the middle. To outsource mortgage back office services is to shift the entire responsibility to professionals who are domain experts that allows them to streamline the entire process flow to boost efficiency and to reduce the TAT.

Experts leverage data analytics for better results– An in-house incorporation of big analytics will require enterprises to train their existing workforce which is not only time consuming but is also an expensive proposition. Outsourcing to experts who leverage data analytics to boost their service delivery will help enterprises to bank on the endless opportunities provided by these tools that drive informed decision-making in the processes.

Improved customer service– The entire mortgage lending process is dotted with several procedures that can be a tedious process to perform to its T. It entails numerous rounds of documentation, enormous resources, and effort which in due process can cast a shadow on the customer service. Outsourcing mortgage back-office tasks will allow lenders to focus on ways to improve and strengthen their relationship with customers. The professional and an expert touch that will result in a streamlined process flow, expedited loan processing, minimal errors will help adding to the layers of customer satisfaction.

How do they work? Does it need any different set-up on Lender/Broker side?

There are no additional setup needs since the outsourcers work directly from your LOS. Most of the origination systems are accessible from any remote location. In addition, the provider will be prepared in advance with conversations about workflow, and the final process will be designed to meet the needs of the in-house team.

What are the available engagement models? How much do they charge?

Currently two models are available. The first is the FTE model, which includes a dedicated resource at a fixed price per month. Just like your in-house resources, these providers work 8 hours a day five days a week and they are reachable through multiple communication forms. This setup is best for sizeable processes since the team will only grow more efficient over time. The second model is done by per transaction, which is most closely aligned with those lenders or brokers that have only a handful of files per month. A minimum commitment each month will be agreed upon and the invoice will depend on literal volume.

How Does the Communication/Reporting Work?

The outsourcing providers are in constant communication in order to receive updates and feedback about their time. Some of this communication is done through email, chat, webinars, or conference calls. Daily product reports help keep everyone on the same page, and weekly calls discuss progress and determine any new courses of action. Monthly snapshots are also provided to the customer to measure quality or productivity, so the customer is always kept in the loop.

Many lenders and brokers are already using processing, underwriting, and closing completed by outsourcing companies in order to improve efficiency and keep a satisfied customer base. In addition to high quality and improvements in processing, there are also incredible time and cost savings that benefits their bottom line.