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.