Hesitant about outsourcing mortgage processing? Read on to find out more about the three unknown benefits of outsourcing mortgage processing.
Ever since the 2008 banking crisis, mortgage companies, small financial firms and community banks have been trying to stay afloat. Added to this, the CFBP has added new regulations which have brought about an added penalty risk for regulatory non-compliance. An increase in loan demand, coupled with the need to maintain loyal customers has forced mortgage companies to turn towards outsourcing service providers for efficient mortgage processing.
Is your mortgage company facing a similar situation? If yes, you will be gaining more from outsourcing, than you ever imagined. Apart from the know benefits of huge cost savings, reduction on expenditures like the CapEx investment and reduced staff and overheads, outsourcing mortgage processing can also bring in other benefits to your business:
1. Outsourcing is suitable for large/small banks
Big banks have the required resources to help them keep up with CFBP compliance and Dodd-Frank burdens. However, a majority of banks can cut down on cost by outsourcing either all or a part of their mortgage processing process. The Mortgage Bankers Associated (MBA) has forecasted that credit unions, community banks and regional mortgage companies are more prone to going under, with the increase in compliance burdens. Continue reading