The services that mortgage lenders use to handle mortgage loans are considered as mortgage processing services. This process involves a lot of steps which need accuracy and expertise. There are basically two different ways in which mortgage processing is done, either it is done by the inhouse staff or the work is outsourced to a third-party company. The handling of these services by your own staff may be laborious and time-consuming. In order to handle a single mortgage application, it may need sorting through, analysing, and processing voluminous amounts of paper. Moving a mortgage application from origination to closing also involves the cooperation of highly skilled underwriters and a sizable support network. A wide range of tasks, including business acquisitions, underwriting disbursements, appraisal title checks, and collections, must be covered by mortgage loan processing services. Having said that, let us now dive into understanding more about inhouse mortgage processing and mortgage process outsourcing, and figure out which method might work well for mortgage lenders.
Inhouse Mortgage Processing
Inhouse mortgage processing refers to the process of carrying out the mortgage processing without hiring experts. The entire mortgage processing right from the origination stage to the closing stage is handled by the inhouse team. Since the mortgage process includes many critical steps that involve a lot of paperwork, cross-checking and critical calculations, maintaining accuracy at each level is very important. Also, there are high chances of errors and delays which might occur when employees lack expertise. Some mortgage lenders are still continuing with inhouse mortgage processing because they are either unaware about the immense benefits of outsourcing or are concerned about the security and privacy of data while the processing is done. Some also think that upskilling their inhouse team will do the job. However, strategic sourcing can be the hidden solution.
Outsourcing Mortgage Process
Mortgage lenders require a team of committed and highly skilled employees, to make informed decisions about whether a borrower is qualified and able to get a mortgage loan. It is crucial for lenders to carefully consider each applicant because poor lending decisions can lead to foreclosures and significant losses for them. Lenders are increasingly looking to hire professionals to handle their mortgage processing needs. This is due to the fact that thorough validation, evaluation, and review of the information required for each mortgage application can be time-consuming, expensive, and prone to errors. Let us take a look at the advantages of outsourcing mortgage processing:
1. Access to Immense Expertise
One of the most important benefits of mortgage process outsourcing is the access to expert professionals in the mortgage industry. With years of experience and in-depth knowledge, experts can easily figure out what works well and what doesn’t. Assigning the work to experts can help in avoiding critical mistakes as they employ tried and tested methods in the mortgage processing.
2. Expedited Turnaround Times
When the mortgage processing is outsourced to experts, the processing time is considerably reduced and the efficiency is increased. Reduction of turnaround time for each mortgage loan applicant can ultimately result in increasing the productivity of your business by increasing the number of approved loan applications within less amount of time.
3. Enhanced Customer Experience
Customers can be easily impressed by the results of outsourcing the mortgage processing to a third-party, making it fast and error-free. They need not wait for long between the different stages of processing.This will definitely improve the reputation of your firm and help you to stay ahead of competition. The speed and ease at which the customers get their loan approved will definitely attract more customers to try out the service you provide.
4. Focus on Core Competencies
When the mortgage processing is handed over to a third-party mortgage service provider, the inhouse staff can give more focus to core sections of the business. Since the outsourced company will do the required follow-ups and processing task, the in-house team can pay attention to business strategies, development, customer expectations and other sections that will improve the business revenue.
5. Start-of-the-Art Technologies and Tools
When the mortgage processing is outsourced to a third-party company, you can gain access to top quality tools and latest technologies used for the mortgage processing which is otherwise expensive to purchase and might require hiring of technology experts to handle it. You can avoid investing your own money on the necessary infrastructure by leaving it to the professionals. All you need to do is put your trust in an outsourcing partner and use their cutting-edge technology capabilities to improve the quality, efficiency, and cost of your loan processing.
Hope this article gave you a better insight regarding mortgage processing, inhouse mortgage processing and mortgage process outsourcing. When compared to inhouse mortgage processing, mortgage process outsourcing is more beneficial for your business. Since mortgage processing specialists have a deep understanding of legal requirements, regulatory requirements and technical requirements of mortgage processing, hiring a mortgage process solutions provider like Auctor Business Solutions can be extremely advantageous to the lender.
