Have you always thought that outsourcing mortgage loan processing is a bad choice? If yes, read this blog entry to find out the five common misinterpretations that mortgage companies have when it comes to outsourcing.
A mortgage loan has just been approved. Now the real work begins. The long and hard task of performing all the functions required to service the loan. If you are currently servicing mortgage functions in-house, you must know that there are huge benefits that comes with outsourcing responsibilities to a third party. Lower cost, robust technology and assistance with compliance are just few of the benefits. Why then are there only a few mortgage companies who are outsourcing? This is because of the common misinterpretations surrounding outsourcing mortgage loan processing.
Let us explore five of the biggest misinterpretations that surround the outsourcing of mortgage loan processing.
The credit union has the same per-loan cost to service in-house as with an outsourcing service provider
Very often, when mortgage loan processing is done in-house, companies fail to include several variable and fixed cost like licensing fees, office supplies, postage, training cost and staff salaries to name a few. All of these costs are customary when servicing a mortgage. Other costs include costs that stem from servicing mistakes like compensatory fees. When true comparisons are made, the findings clearly reveal the substantial savings that can be gained by choosing to outsource.