As the cost of originating mortgages continues to increase and the market continues to shrink, lenders who want to remain competitive need to examine how best to position their organization to serve their customers profitably and manage risk. Outsourcing to a competent partner can lower risks and produce a variable cost versus a fixed cost.
Reason # 1 – Organization
There are challenges within every organization, some of which may include:
- Having a limited budget for development of personnel
- Technology
- Not having the bandwidth to compete with lenders offering digital delivery as well as approvals in minutes
- Spreading resources across multiple business lines
- Sharing internal resources that may have an agenda counter-productive to mortgage originations
A trusted advisor and outsourcing partner can provide experience and a fresh point of view that you can rely upon to effectively manage your business.
Reason #2 – Resources
We all know there are ebbs and flows in the mortgage business. Managing fluctuations in volume and covering gaps in staffing are only part of the issue. Finding, recruiting, hiring, training, mentoring, managing and retaining the appropriate staff is difficult and expensive. Current staff may lack the depth of experience needed and you may lack the resources to get them up to speed. Is your loan officer spending his or her time processing and managing the pipeline rather than selling? Outsourcing gives you a safety net to cover gaps and help you manage your staffing needs while allowing you to drive more originations to your business.
Reason #3 – Process
Originating and manufacturing a mortgage loan is a simple business, however, there are a million simple things you need to know. Multiple systems from POS, LOS, core banking systems, investor systems and vendor systems can create inefficient and uneven boarding for new loans. The gathering, tracking and organization of data and documentation to efficiently compile the necessary items to deliver a loan requires constant vigilance. Peeling off some of the responsibilities to your outsourcing partner allows you more time to focus on quality and compliance.
Reason #4 – Guidelines
In the ever-increasing need to offer competitive pricing and product, it is necessary for mortgage lenders to have multiple investors. Managing multiple guidelines, delivery options, overlays and compliance regulations can create an inconsistent delivery to your investors, leaving you vulnerable to costly mistakes, or worse, headline risk. Having an outsourcing partner that is focused only on your business mitigates mistakes and provides oversight.
Reason # 5 – Growth
To continue growth plans, or even just to keep pace with previous years’, a mortgage lender needs to be focused on some key areas: dissatisfied borrowers, lack of time to appeal to new customers growing market share, inability to focus on millennials and buying habits in your community, and investment in current technologies not being used to highest potential. Utilizing the resources of your outsourcing partner can give the relief needed to create a strategic growth plan that is sustainable and profitable.
I would like to learn more about your end to end fulfillment solutions offerings that are available, as we are a startup mortgage company that would be set up initially as non-delegated correspondent. We would be licensed in only 3 states (Georgia, Florida and Tennessee) and grow from there. Our LOS would be Calyx’s mortgage banker platform. Do you have a presentation to share with me that highlights your services available and the pricing per unit?
When I originally commented I clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I get 4 emails with the identical comment. Is there any manner you can remove me from that service? Thanks!
Bob,
I will do my best to get you removed from the list. Can you tell me what comment you replied on and when you did this please? I cannot find you on any of the list. Thank You
Very nice blog post. I definitely appreciate this site.
Keep writing!
Can I just say what a relief to find someone who actually knows what theyre talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I cant believe you’re not more popular because you definitely have the gift.
Greetings! Very useful advice within this post! It is the little changes that produce the most significant changes. Thanks for sharing!
Hello there I am so thrilled I found your weblog, I really found
you by accident, while I was browsing on Digg
for something else, Nonetheless I am here now and would just like to say many thanks for
a remarkable post and a all round exciting blog
(I also love the theme/design), I don’t have
time to look over it all at the minute but I have bookmarked it and also included your RSS feeds, so when I have
time I will be back to read a lot more, Please do keep
up the awesome jo.
Hey There. I found your blog using msn. This is a very neatly written article. I’ll be sure to bookmark it and come back to read extra of your helpful info. Thanks for the post. I’ll certainly return.
I am actually delighted to glance at this webpage posts which contains plenty of
useful data, thanks for providing such information.