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.
Over the last few years there has been a shift in the way business is conducted among financial institutions. Whether it is adjusting to a new breed of clients or navigating through new regulations, banks and credit unions are faced with several changes. Financial organizations have to consider how they can best serve their customers in order to stay profitable.
One way that credit unions and banks can choose to face these challenges is to outsource mortgage services to an external third-party service provider. Let us explore four benefits of outsourcing mortgage services for credit unions and banks and how outsourcing can help lenders to address these challenges in a better manner.
Mortgage post-closing is not an easy procedure. Several things have to be taken into consideration before a loan is closed. Read this post to find out what happens during mortgage post-closing.
The closing of a mortgage loan is not a simple process. As a lender, you would have to compile with borrower qualifications and compliance issues during the post-closing of a loan. Opting for outsourcing is a great way to streamline the process of mortgage post-closing. Not only will you benefit from a sharp reduction in your operating cost, you can also benefit from accurate audits and timely reports. Outsourcing would give you access to a skilled team of auditors and mortgage underwriters who will ensure that your loans are closed seamlessly.
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