Lenders are facing a Catch 22 situation due to volatility in volumes and stiff competition. Competition is pushing lenders to offer loans at competitive rates to attract customers while shrinking volumes are putting pressure on the lender’s bottom line. The only way to improve profitability amid tight conditions is to reduce the cost of loan production and improve operational efficiencies.
Operational efficiencies can be improved in 2 ways:
- Invest in technology
- Partner with reliable mortgage support services
However, though investing in technology will improve efficiency, it would do less to reduce operational costs. First, investing in technology would result in capital outlay at the outset. Secondly, you will need to hire and train staff to run the software. It would add to your costs. Thus, investing in technology may not help reduce the cost of loan production. Moreover, investing in technology cannot be done overnight. It is a long process that may take at least a year or more to implement and streamline. Thus, lenders may not find it so effective.
So, what is the most efficient and economically viable way to reduce the cost of loan production and improve margins?
Partner with reliable mortgage support services:
If you can find a reliable partner to support you through the loan production process, you will be able to:
- Save on cost on loan production
- Improve operational efficiencies greatly
- Reduce loan processing time by 30%
- Faster loan closing
- Enjoy measurable and predictable ROI
- Quality loans
- Prevent frauds
- Get 99.8% accurate results
How do reliable mortgage support services help in reducing costs on loan production and improve your margins?
A reliable loan production service provider will handle all the tasks on behalf of the lender such as:
- Collating the loan documents
- Verifying borrower’s eligibility for the loan
- Updating data on the loan origination system
Your loan production service partner will verify the following:
- If the loan application form is filled in completely
- Flag any missing information
- Cross check details such as addresses, current employment details, employment history, credit score, and more.
- Report missing documents
- Red flag suspicious loan applications
With professional loan production outsourced services, lenders can work efficiently. They can save time in running after borrowers to collect documents and missing information. This results in faster closing of loans.
Your outsourced loan production partner would use technology to handle repetitive manual tasks. It eliminates the chances of errors and improves efficiency. Also, they would send you timely reports in a secure and intuitive environment. This would improve operational efficiency and transparency.
A thorough analysis of applicant circumstances and property details is conducted by the outsourced partner. As a result, lenders will get a detailed pre-title report reflecting the findings. It helps lenders focus on loan applications with a clear title, suggest remedial action to the borrower, where needed. With defects being identified before it the loan files are sent to the underwriter for approval, it results in an efficient process, where the lender’s resources are saved. Lenders can optimize their operational costs, and stop spending time on loan files with a lesser probability to close.
At GrowQ, we help lenders reduce turnaround times from application to closing by 30%, fasten the pace of title insurance and ensure improved loan quality for a faster closing. A higher number of quality loan closing results in improved profitability for the lender and a higher borrower retention rate. Our transparent reporting systems enable lenders to measure ROI from day 1.
With GrowQ, lenders can rest assured of reducing loan production cost, improving margins, and closing loans faster with improved efficiency and accuracy.