How outsourcing mortgage processing benefits lenders & brokers
March 21, 2012
Every business is ambitious to grow and expand. However, few are equipped to handle even a 50% increase in the volume that they currently deal with. It gets even tougher for players in the mortgage industry, as they already have to deal with cyclical fluctuations of 20–30%.
Hiring new resources and training them on tasks like loan processing can be cumbersome and time consuming. It also substantially increases operational expenses.
Resource planning for peak periods and growth stages needs attention from top management, which can sidetrack them from working towards more important strategic plans. Loan origination and closing is a complex and tedious process, while compliance requirements call for great attention to detail.
The above situation calls for a solution that would work seamlessly for mortgage lenders and brokers, helping them handle cyclical volume and focus on growth plans. Thankfully, there are mortgage service providers who can augment the staffing and operational needs of growing lenders and brokers. They have large teams dedicated to loan processing, underwriting, loan submission, and other parts of the loan cycle.
These service providers also have access to large resource pools. Focused as they are on handling the entire loan cycle, they ensure compliance with federal and state regulations. Adding and removing resources gets much easier as they handle multiple customers and are able to cross-utilize resources as and when required.
Most of the processes can be started with minimal training, as they have staffers who possess a good knowledge and understanding of the mortgage industry. The mortgage service providers are able to self-manage different processes, which frees up valuable time for senior staff in-house.
Communication is seamless and operations are transparent, so that lenders and brokers maintain complete control, while the mortgage service provider’s team confronts and deals with challenging situations. There are a number of direct and indirect benefits of using the services of a mortgage service provider.
Some of the direct benefits that can be quickly attained are:
- Easy resource planning for growth and cyclical volumes
- Visible quality improvements
- Near 50% reduction in operational costs
- Significantly lower infrastructure and overhead requirements
- Reduced time and attention required from middle and senior management
These benefits make outsourced loan processing service providers an excellent choice for mortgage lenders and brokers, who would be well served by getting complex tasks performed by them.
Contact ExpertMortgageAssistance to outsource your mortgage processing.