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Mortgage Processing is an important part of the lending process, but the various segments of the process can be time-consuming, stressful, and non cost-efficient for in house employees. This article is a brief review of the pros and cons of keeping mortgage processing completely in-house versus shifting some of the responsibilities to an outsourcing company.

Keeping it Internal

Obviously, you’ve kept it internal up until now for some reason. Perhaps it’s just tradition or you weren’t aware there were other options. In any case, many managers are looking at their bottom line and using that as the key motivation, to research alternatives. Outsourcing has many benefits beyond a cost savings, but it’s also possible that there are critical pieces of the puzzle you’d prefer to keep in house. Using an outsourcing company, you can still make the most of in-house operations while shipping out some portions of the process.

There are also privacy and security issues that make up part of the argument to keep processing internal. Full time employees are trained on the specifics of your workflow as well as the importance of keeping information private, so if you do elect to outsource, verify that the company you’re working with is clear about your expectations and that they have a plan in place to manage privacy.

Finally, change is difficult. If employees are used to processing a certain about of work or handling the process from start to finish, it can be a roadblock to investigating the options of outsourcing. If you’re able to plan for the transition, however, both companies can grow alongside one another without sacrificing the quality and time-frames that you’re accustomed to.

Outsourcing

The most clear benefit of outsourcing all or part of the process is the bottom line savings. Rather than having to employ full time staff to handle the work flow in house (which often come with salary and benefit packages), an outsourced company provides a cost savings and reduces the in-house need for all or some of the mortgage processors. This can cut down on providing desks and office space for this staff as well as cutting down on the management duties of the person in charge. With this addition of time can come focus on bigger picture problems, freeing up key staff to help grow the business rather than manage the processes within it on a day to day basis.

Mortgage processing outsourcing, especially in India, has grown at such a rate recently that there are a multitude of companies to choose from. Many offer customized packages, so you can align overall requirements with exactly what you need from the outsourcers. With this growth in companies to choose from comes competition, and many of these companies are in a situation to position themselves as the best option for you. This gives you variety and a choice in finding the ideal company for your needs.

The reduction in workload on the U.S. side allows for a streamlining of operations and employees that are now able to focus on critical tasks. Employees with a clear workflow will also be happier and easier to manage as opposed to those entangled in the full web of loan processing.

There are many benefits to outsourcing, but doing so also comes with challenges. Aligning expectations and keeping the lines of communication open as necessary are important for developing a long-term relationship with your mortgage processing outsourced company.