Outsourcing plays a very important role in the mortgage industry, and it is a very common practice these days. It helps mortgage lenders to take the load off their ops and processing teams and helps them in managing high volumes with ease. It takes care of several of the time-consuming tasks in loan processing, pre-underwriting, post-closing, QA, and examination. The need for mortgage process outsourcing is clear.
The growth of outsourcing became more evident with the fact that outsourcers can do the work at a fraction of the cost of what lenders spent on doing it themselves.
Mortgage Process Outsourcing
Today top mortgage enterprises give the preference to outsource their work to service partners in different areas ranging from loan boarding, document processing, pre-funding, QA, Pre-underwriting, post-close, etc. They choose to outsource it rather than spending resources on building an in-house team, which will increase their expenses. Outsourcing enables them to partner with third-party providers that excel in their niche.
Mortgage enterprises, apart from outsourcing some of their key processes, also work with several 3rd party vendors like appraisal management companies and title companies. While several of these activities may be outsourced, the final outcome responsibility remains with the mortgage company.
Managing various relationships, following up for deliverables with multiple third-party vendors and agencies – each handling a different vertical – is very complex. It is critical for lenders to outsource their assignments to be vigilant right from identifying the correct type of vendor to carrying out all the other formalities in order to ensure a stress-free workflow with the desired quality standards. This clearly states that managing multiple vendors is one of the most critical functions of the mortgage process.
Effective Vendor Management is an imperative part of the whole mortgage processing ecosystem as it can produce significant value. It helps in reducing costs, improving contract terms, and increasing the value the organization yields from each vendor.
It becomes beneficial to have a mortgage processing partner on board who can handle the entire vendor management process. Having one entity to manage all the vendors helps in reducing the burden for the lenders and also standardizes the deliverables so that every vendor is using a uniform and predictable process.
Compliance is another essential aspect that has to be streamlined during a mortgage process. The more the number of vendors, the more chances there are that they might stray out of compliance and face increased risk. Staying on top with ever-changing state and federal regulations, it becomes mundane and time-consuming.
Outsourcing it to a partner processing company that promises to deliver end-to-end loan processing can take up the onus of looking after the vendor relationships. The partner can be involved, right from proper due diligence to vendor selection and then managing the vendor deliverables. A partner company can take care of the time and effort, especially if multiple vendors must be synchronized in their deliveries.
PrologiQ is one such mortgage loan processing company that can help you manage the complete loan processing work. We can take care of your 3rd party vendor relationships right from due diligence, work allocation, project management, and follow-ups, thereby reducing your efforts and costs by more than 50%. This can save time for lenders from a lot of administration and supervision activities.
Talk to us and explore how we can add value to your mortgage operations.