Things to keep in mind while choosing specialized mortgage processing support

In India, the mortgage industry is a profitable business. The Indian mortgage loan market grew by 32% CAGR between 2017 and 2021. The growing popularity of mortgage loans drove the creation of numerous mortgage lenders outside of the traditional banks.

Lenders face several challenges in their work, including high operational costs, stiff competition, and strict regulations. Besides these issues, lenders have to perform some repetitive, tedious tasks involved in mortgage origination. These difficult tasks include loan processing, mortgage servicing, tax monitoring, payment processing, and escrow services, to name a few. They are very niche duties that require skilled professionals and advanced technology. Mortgage process automation is also vital to ensuring quick, seamless loan processing.

Previously, lenders would oversee all these tasks. However, more and more home loan lenders have preferred to outsource mortgage processing support in recent years. Outsourcing allows lenders to delegate complex tasks to trained professionals reducing turnaround time and overhead costs and focusing on their operational and managerial roles. Furthermore, mortgage processing support services cater to back-office activities that require a lot of time, funds, and resources. They implement mortgage process automation to speed up these steps and maximise accuracy.

Service providers concerned with mortgage loan processing are equipped with qualified professionals and data analytics programmes. Outsourcing lenders can leverage these facilities to enhance their brand image, improve customer experience, and grow their business.

Things to consider when choosing mortgage processing support services

Outsourcing is very beneficial to small and large corporations. However, not every package or service offered by these providers is suitable for every company.

Before settling on a mortgage processor, contemplate an appropriate budget. Mortgage processing providers may have pre-built packages to choose from or allow lenders to select the services they would like to delegate and charge accordingly.

Moreover, assess the business’ operations and identify which tasks are difficult to perform and require trained personnel. Many mortgage processing companies provide services aligned with tasks involved in loan processing.

Examples of services offered by mortgage processing support providers include:

Document collection

Supporting documents play a crucial factor in loan processing. Prospective clients may be unaware of the necessary documents to present or provide the wrong documents entirely. Mortgage processing service providers ensure timely collection of the right supporting documents.

These documents include bank statements, W2s, pension statements, mortgage statements, escrow documents, child support documentation, property flood certificates, and homeowner’s insurance documents. Moreover, some facilities help lenders prepare loan estimates (LE).

Document review

Mortgage processing companies utilise their trained personnel and mortgage process automation to review the supporting document’s compliance thoroughly. They oversee the entire document preparation process by reviewing authorisation documents, W2 forms, 1003 and 1008 forms, and LE preparations.

Moreover, they review thousands of supporting documents daily to ensure that they comply with state and federal regulations before filing them. Providers also look up the VA case numbers online.

Credit score check

Mortgage processing support services cover the regular credit check of the borrower’s finances. They analyse pre-screening credentials and pull credit reports. They also scrutinise credit history, social security status, existing loans, payment defaults, and tax returns.

Credentials verification

Providers also help lenders verify the borrower’s credentials. They investigate the authenticity of the supporting documents and analyse employment, mortgage, deposit, and property sale history. Mortgage processing companies also compile verification reports for lenders.

Mortgage user experience support.

Outsourcing enables lenders to overcome the tough competition in the mortgage sector as lenders obtain access to data analytics programmes. Data analysis drives brand image and customer experience. Understanding the current trends of the markets, target audiences, and expectations allows businesses to create operations and products that align with these factors.

Mortgage loan quality and retention services

A huge risk associated with mortgage loan disbursement is the possibility of a bad loan. Numerous unrepayable loans may prove detrimental to business growth or survival. The best way to detect likely defectors is to implement mortgage loan quality and retention services. Through mortgage process automation and robust verification, these services ensure loan compliance with TRI, CFPB, and GSE regulations. Furthermore, mortgage processing service providers are keen to determine possible defaulters and unverifiable loans.

Mortgage loan boarding services

Outsourcing maximises accuracy and efficiency by employing mortgage process automation to transfer loan portfolios and account information between systems. These services minimise loan application backlogs, tension due to a large workload, and operational expenses. The mortgage processing service provider evaluates the accuracy of loan portfolios, organises the data expertly for easy extraction, and prepares concise reports. The entire process is automated, utilising data analytics and smart algorithms. Loan boarding ensures rapid data documentation and reduces mortgage origination costs by 30%.

Summing up

Outsourcing mortgage processing support promotes smooth operation and management of a mortgage loan advancing business.

Mortgage processing companies play a significant role in the loan sector today. They perform the repetitive, tedious tasks lenders used to do that use time, money, and resources. Mortgage process automation and trained personnel are the backbones of these companies or service providers. Outsourcing enables companies to acquire better technological solutions, focus on core operations, and reduce operational costs.