The mortgage industry is in a precarious situation with the current economic downturn. Mortgage rates are highly volatile. Anticipation of an aggressive interest rate increase by the Federal Reserve and the rampant trade-off of mortgage-backed securities resulted in frequent spikes in mortgage rates.
Lenders cannot afford to lose sight of the shifting market trends and improvise their business strategies accordingly. It is not the time to get bogged down by unorganized and siloed process frameworks that shift away the focus from things that require immediate attention.
It is at this time when mortgage BPO companies will play an extremely important role like never before. In 2022, mortgage business process outsourcing will be instrumental in streamlining the critical back-office processes to help lenders improve their front-line operations.
On this note, here’s looking at 6 top ways by which a mortgage BPO will help your business.
6 Ways Mortgage BPO Companies will Uplift Your Mortgage Business
Role of a Mortgage BPO- Assistance in Loan Processing
Lenders’ business prospects are challenged from many fronts when it comes to loan processing. These fronts are regulatory compliance, document management, and expedited closure requirements. Typically, mortgage loan processing involves a number of intertwined steps. This makes it difficult to maneuver all the challenges at all processing stages.
Mortgage BPO companies provide all-inclusive mortgage loan services under a single roof. These services cover expedited and efficient document management. It involves receipt and review of loan application documents.
They conduct all sorts of document verifications that include income, employment, deposit, and mortgage. Their services are driven by precision. A mortgage BPO maintains this quality by assigning professionals who are experts in the mortgage processing domain. They boost lenders’ capacity to process more loans, reduce the processing turnaround time, and minimize operational expenses.
Role of a Mortgage BPO- Assistance in Underwriting
Inaccurate or insufficient information is among the many factors that challenge underwriters on a daily basis. This results in either a delay or an inaccurate underwriting decision that ultimately pushes lenders into disbursing a bad loan.
There is no doubting the fact that the loan quality hinges on the decision accuracy in the underwriting stage. Acknowledging this fact, BPO mortgage companies dedicate professionals who do not have to juggle multiple mortgage-related back office tasks. As a result, they invest their undivided attention in performing loan analysis, analyzing borrowers’ creditworthiness and their risk, doing loan pricing according to the prevailing interest rates, and other underwriting activities.
Most mortgage BPO companies leverage an automated underwriting system for efficient data extraction and validation. In keeping with the current market conditions, third-party providers revamp the existing evaluation process by configuring their automated systems with new questionnaires for customers’ data validation.
Role of a Mortgage BPO- Closing and Post-Closing Support
Improper document management, inefficient data validation, and disorganized processes slow down the entire loan origination cycle. These tend to have negative impacts on the closing and post-closing processes. Such impacts include inflated TAT, process backtracking, and most importantly a bad loan buying experience.
Modern-day mortgage business process outsourcing companies leverage automation technologies to standardize the closing and post-closing processes with fewer submission checklists. They design detailed process roadmaps and quality checklists.
Third-party experts provide all-around loan closure support. It includes closing documents compilation, post-closure loan package creation, property title scrutiny, maintaining regulatory compliance, and others.
Role of a Mortgage BPO- Title Support Services
A diligent examination of property titles is extremely critical during the mortgage loan closure. A thorough examination will reveal any prior claims or disputes over the property title.
BPO mortgage companies provide comprehensive title support services. The title support experts conduct a thorough analysis of reports provided by third-party property appraisers. They look out for every minute detail that may reveal any financial obligation that can come in the way of loan closure.
Mortgage BPOs also coordinate with listing agents and loan officers to collect title search reports and pay-off settlements.
Role of a Mortgage BPO- Appraisal Support Services
Third-party mortgage BPO companies leverage the most advanced evaluation technologies and smart analytics to provide accurate property valuation reports on time.
Their services include helping lenders order an appraisal and find the most suitable professional to do the job. Most of the time, it becomes an uphill task for lenders to liaise with individual appraisers who operate across distant locations. This results in process errors and work backlogs.
Third-party experts analyze appraisal photographs, property sales history, location maps, appropriateness of the adjustments, comparable, and the report date, appraiser’s signature, and license number. Post that, the experts pass the report to the lender.
Role of a Mortgage BPO- Loss Mitigation Services
For lenders, any episode of property foreclosure creates a huge financial burden. Therefore, lenders need experts who can help them better negotiate mortgage terms and conditions.
Mortgage BPO companies assist lenders in avoiding the possibility of foreclosures by dedicating a pre-funding QC experts team. They randomly sample loans and rewrite them entirely if required. The experts also compare the loan files with the underwriter’s output.
Such comparisons are critical to helping lenders spot errors. It also helps lenders to provide timely feedback to underwriters for them to improve.
How We Assist You with Spotless Mortgage Business Process Outsourcing Services?
Lenders need to make extra efforts to let their businesses thrive and prosper in the current testing times. They must make the most of the digital disruption across their mortgage value chain. However, the market conditions are unforgiving. The conditions will not spare the time that a lender must take to optimize their front-end operations and enhance operational excellence.
As among the most eminent mortgage business process outsourcing companies, we make these efforts on behalf of lenders. We distinguish ourselves from the rest by human intelligence backed by our proprietary automation technology, analytics-driven approach, process flow discipline, multi-tier review processes, and flexible engagement model.
We leverage our proprietary mortgage automation tool MSuite to aid lenders in minimizing their reliance on human labor and subsequently witness a 4x operational efficiency improvement.
For instance, our experts successfully used MSuite to help a full-service direct residential mortgage lender minimize the document indexing process TAT. MSuite relieved the team from the task of manually sifting through multiple loan packages received by our client from multiple brokers and correspondent lenders.
MSuite made the document indexing process much more expedited and efficient. Our client experienced substantial OPEX savings by reallocating the document indexing team to another process that faced a resource shortage.
Who Are We and Why Are We Considered An Industry Expert?
This article is penned by professionals at Expert Mortgage Assistance, a leading mortgage BPO company. Our streamlined and automated BPO mortgage loan processes help mortgage lenders to streamline their backend operations, maximize cost savings, and witness improved time to market.
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