Tag Archives: mortgage processing

3 Unknown Benefits of Outsourcing Mortgage Processing

3 Unknown Benefits of Outsourcing Mortgage Processing

Posted on July 19, 2015

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

5 Mortgage Underwriting Services That Every Mortgage Company Needs

Posted on September 7, 2014

Mortgage underwriting is usually the final step in the mortgage process, wherein the creditworthiness of the customer who has applied for a mortgage loan is determined. Although there is automated software to check various factors, an underwriter still has to analyze various details to evaluate the repayment capability of an applicant.

However, even with the use of software, complete transparency cannot be achieved in the loan review process, thereby increasing the risk value to lending companies. Outsourcing mortgage underwriting to a professional service provider can help you quicken the process of mortgage processing, through accurate assessments of loan applications and analysis of loan prices. Other benefits include an increase in your accuracy level and a reduction in rising overhead costs.

Here are five mortgage underwriting service that your mortgage company can benefit from:

1. Meticulous loan approval checks

Generally, loan application will require many conditions, which have to be met before the final approval is issued. The conditions could include things like the income statements, credit scores, purchase agreements or supporting documents that are needed to support the loan applicant’s case. A mortgage service provider will make sure that nothing is left unchecked and that all the conditions to clear the loan are met.

2. Zero errors with automated software

Need help with your underwriting software? Now instead of pondering over how to use a software, you can simply outsource underwriting automation software. Your service provider will run mortgage loan applications and evaluate if they will be denied or accepted. You can also get to know which areas of a loan need your attention. With the use of automated software, you can always be sure that your data is 100% accurate.

3. Check and review falsified frauds

Being in the mortgage business, you will already be aware about the stringent measures that banks have taken in order to deter fraudulent loan applications. Such rules may sometimes reject genuine loan applications, which may have occurred due to an omission of certain information or incorrect data submission. Through the use of fraud review services, you can check for fraudulent factors in a loan application, such as, multiple cash transactions, large withdrawals/deposits or conflicting addresses to name a few. Continue reading