As the volumes in the mortgage business take a backseat, lenders are facing stiff competition from their peers. Again, compliance with various regulations and demands from the customers for quick closing of loans is putting lenders under tremendous pressure. Lenders can stay ahead of the competition by:
- Offering most competitive rates to borrowers
- Reduce turnaround times
While it may seem that reducing turnaround times can be achieved by hiring more employees, it would only add to your fixed costs. Also, in slack times like these, it doesn’t make much sense to employ more hands. Again, to offer the most competitive rates to the borrowers without compromising on your profitability would be difficult. That’s where outsourcing mortgage processing services come into play. They offer tailored services at a flexible pricing model to suit your needs. A reliable outsourced mortgage processing partner is an asset for the lender to achieve better cost efficiencies and faster turnaround times.
Listed are some of the tasks that your outsourced mortgage service provider will handle for you:
Document Verification and Validation
To ensure the borrowers have filled in their loan applications completely, all the subsequent documents are duly attached, and there is compliance with the regulations, your outsourced mortgage processing partner will check the following documents:
- Pay stubs
- Form 1003
- Form 1099
- Form 1008
- Past history of Renting
- Gift letters: Stocks, bonds
- Tax Returns
- Past 2 years W-2 forms
- Bank Statements
- Profit & Loss Statement
- Work visa/green card
Your outsourced mortgage processing partner keeps a keen eye for details. They have a ready, detailed checklist for the documents that need to be submitted. Each loan application is duly checked to ensure that the applications are filled in properly, there is no missing information or documents. Also, the documents are validated with appropriate sources. A list of missing documents and missing information is sent to the lender under the ‘still needs’ head. Applications that raise suspicion are flagged. Most importantly, the outsourced partner will have a skilled team to accurately and quickly verify and validate loan documents for a faster closing.
Reviewing 3rd party documents
In addition to the borrower’s documents, your outsourced mortgage processing partner will ease away your burden by reviewing complex 3rd party documents and help expedite the loan closing.
They will review the following 3rd party documents:
- Title Report
- Appraisal Report
- Form 4506-T
- Homeowners Insurance
- Insurance asset copies
- Divorce Order
- Child support documents
After reviewing, any invalid or incompatible data is flagged to ensure consistency in the documentary evidence. Thus, when your loan files are verified by the underwriter, they will need less time for approval. As such, you can achieve faster turnaround times.
Data Entry for Mortgage Processes
Your outsourced mortgage partner can also help you with the data entry required at various mortgage processing stages. For example, entry of mortgage documents, Quitclaim deed, auction listings, deed of trust, disclosure policy, and more.
There is no doubt that an outsourced mortgage processing partner can be a great relief for lenders. When the volumes are low, they can bring in cost efficiencies, and when the markets are high, they can help you scale your business. But the key is to find a reliable partner that can offer economically viable and flexible models while ensuring accuracy and faster turnaround times. That’s where GrowQ comes in…
At GrowQ, we deploy structured and systematic process methodology. Our experienced team and result oriented approach mean more profitability and hasslefree experience for our clients.