Outsource Mortgage Underwriting Services for Better Assessment

Underwriting Feb 13, 2023

mortgage-home-image. The mortgage underwriting industry has been undergoing a significant transformation in recent years. With the advent of technology and the increasing use of digital tools, the process of underwriting a mortgage has become faster and more efficient. According to recent studies, the average time it takes to support a mortgage has fallen from 40 days to as low as 10 days. 

Despite these advances, the mortgage underwriting industry continues to face several challenges. One of the biggest challenges in the mortgage underwriting process is the need for more skilled underwriters. As the demand for mortgage loans continues to grow, many underwriting departments need help to keep up with the volume of work. This has increased pressure on existing staff and longer turnaround times for loan approvals.  

Another major challenge facing the industry is the increasing complexity of mortgage regulations. With the implementation of new regulations such as the Home Mortgage Disclosure Act and the Qualified Mortgage rule, underwriters must have a thorough understanding of the regulations and be able to interpret them accurately. This requires ongoing training and professional development, which can be challenging in an industry with a high turnover rate. 

Despite these challenges, the mortgage underwriting industry remains a vital part of the mortgage lending process, ensuring that borrowers receive appropriate loans for their financial situation and helping to prevent defaults and foreclosures. With the increasing demand and ongoing advancement in the market, outsourcing mortgage underwriting can be the best choice to cope with this measure. Let’s see how it can advance your process.  

How long underwriting a mortgage takes?

Underwriting a mortgage loan is evaluating a borrower’s creditworthiness and the overall risk associated with granting the loan. This process can take anywhere from a few days to a couple of weeks, depending on several factors. Several variables will determine how long it takes, including the lender’s current application volume, underwriting standards and procedures, and the complexity of your financial situation. Borrowers with more complex financial histories, such as those who are self-employed, may have to wait longer than those with more straightforward applications.  

On average, the process can take anywhere from 7-14 days for a straightforward loan to several weeks for a complex loan. 

Read this article about some Common Issues that Affect the Mortgage Underwriting Process that mortgage underwriters must treat with seriousness. 

Why outsourcing for better assessment 

All mortgage lenders may agree that underwriting mortgage loans are a complex and time-consuming process that calls for a highly trained and motivated workforce. That’s why some financial institutions are actively seeking mortgage underwriting services to outsource to reduce administrative burdens. Here are five reasons your mortgage company should outsource the underwriting process to the experts.  

1.Eliminates the possibility of errors

Mortgage underwriting might be complicated, but you can get beyond the challenge with the right tools and expertise. However, only some lenders have these tools and expert staff available. Mobilizing these resources might be time-consuming and a burden on your budget. Using a third-party service for mortgage underwriting will guarantee error-free work as they already have these tools and have developed the expertise by doing it for various institutions. 

2.Eliminates Fraud 

To reduce the number of fraudulent credit application submissions, financial institutions have developed several severe regulations that might result in rejecting otherwise legitimate credit requests. Lenders may check for potentially fraudulent information on a credit application using fraud screening services. This includes checking for multiple currency swaps, large withdrawals/stores, and conflicting locations.  

Your outsourcing partner for mortgage underwriting can assist you in checking for errors like these, taking a closer look at the conflicting addresses, and making the necessary corrections to the credit application during the mortgage underwriting process.  

3.Thorough credit approbation procedures 

To streamline the loan application process, several factors must be considered before issuing approval. Everything from cost-benefit analyses to income statements has to be taken into account. Outsourcing the mortgage underwriting process means experts will conduct comprehensive checks on your behalf to guarantee loan approval.

4.Careful evaluation of point of interest (POI) with title audits

When you outsource your mortgage underwriting, the mortgage underwriting support provider you work with will verify that the property related to the loan is clear of any claims and help you access the titles. The service provider will examine all POIs of a title record and update the software used for loan processing accordingly. 

5.Careful valuation of properties 

If you need assistance with mortgage underwriting, hiring a service provider will provide you with more accurate estimates of the properties. An acceptable assessment statement is drafted in which all information, from locality maps and images to property modifications, has been thoroughly checked. By having the property appraised adequately by an expert partner, you’ll have less to worry about while you fill out the rest of the mortgage application. 

By contracting with an established outsourcing firm, the processes involved in mortgage underwriting may be improved, which is why you must carefully select your partner. Please read our 5 Tips to Select the Right Mortgage Underwriting Support Provider article to learn how to choose the right partner for the mortgage underwriting process. 


Outsourcing the underwriting of mortgage loans helps guarantee its accuracy for lenders and takes off the load from the in-house team to focus on other issues. Service provider firms handle every facet of mortgage underwriting on their behalf to ensure their customers’ peace of mind and continue cultivating a solid relationship with them. 

Expert Mortgage Assistance is a reliable source for mortgage underwriting services for major companies in the market. Mortgage firms’ back-end processes are greatly simplified by our highly trained mortgage loan underwriters’ use of cutting-edge digital solutions. If you want to know how our unique services help your business maintain its relevance and competitiveness in the market, don’t hesitate to contact our specialists. 

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