In 2024, lenders and borrowers have one question: when will interest rates drop and by how much? While all indicators point to a rate decline, borrowers may still be waiting for historic lows which are unlikely to occur again. However, the downward trend along with spring around the corner will likely spur an uptick in market activity as buyers tire of waiting to make a move.

Regardless of market conditions, the winning factor for lenders is the ability to easily scale up and down and maintain a variable cost model. With that in mind, Gooi has designed MortgageKit, a fully hosted end-to-end mortgage fulfillment solution that includes point of sale which eliminates the need for a costly loan origination system. Our pricing structure is variable vs. fixed cost, scalable to two loans per month and can be used for your entire back-office support or run concurrently with your platforms providing necessary business continuity and support. MortgageKit benefits include:

• Access to loan origination system and consumer portal
• Dedicated online workspace for loan origination
• Visibility of Gooi’s loan review throughout entire process
• Ability to select secondary market options
• Experienced staff solely focused on operations
• Consistent workflow from disclosure through post-closing
• Can underwrite to multiple investor guidelines
• Array of vetted mortgage vendors with competitive pricing for third-party services
• Limited warranty to further reduce risk

This turnkey solution allows your team to focus on building community and customer relationships that generate revenue while confidently leaving the operations to us. Getting started is simple with a low initial fee and 45 days from contract to lending! Contact us to discuss if MortgageKit — or our ala carte fulfillment services — might help you grow and improve your bottom line.

As mortgage rates are edging down across the board in response to economic data showing some positive signs, lenders need to prepare a game plan to respond. 

The timing of this much anticipated drop could coincide ideally with the spring 2024 buying season. Even at current rates, with skyrocketing credit card interest and burgeoning home equity, cash-out refinances should also be very attractive and can save borrowers thousands. According to Bankrate data, retail cards have hit an all-time interest rate high of 28.93 percent with the average credit card interest rate of those carrying a balance of 22.77 percent which makes a ~7.00 percent rate a smart choice.

The big question is, are you ready for an influx of borrowers who have been waiting to make a move or consolidate debt? As business steadily decreased over recent months, you likely had to eliminate staff, but before you start to hire, consider the efficiencies and variable cost model of outsourcing to supplement your existing team. After months of plummeting volumes and low to no profit, you can’t afford to turn away borrowers.

Fortunately, we have a seamless end-to-end fulfillment option with a simple point of entry and variable cost model: MortgageKit. If you can produce two loans per month, you can be up and running in less than 45 days from implementation to lending!

MortgageKit eliminates the need to purchase or maintain a loan origination system and you will have visibility to your loan pipeline and access to a consumer portal. You can also select secondary market options and have access to vetted mortgage vendors with competitive pricing for third-party services. 

We also offer stand-alone services such as processing, underwriting and closing/post-closing and can work in your LOS or Gooi’s Encompass platform. We are fully licensed in a majority of the U.S. with a limited warranty to reduce risk.

Gooi’s best in back-office support means your team can focus on generating income and leave the details to us. Contact us today to find out how our right-size approach makes sure you get everything you need and nothing you don’t!

Many lenders’ knee-jerk reaction to market conditions is to cut staff and scramble for every new origination, but they may be missing the immediate bottom-line impact of looking “within” to mine the gold that comes with Quality Control’s (QC) business intelligence.

QC is not just about avoiding repurchases and meeting compliance requirements. It’s about informing the loan manufacturing operations of its non-conformance and driving corrective action costs down. An effective QC program tells you exactly where to look for such efficiencies without cutting staff or implementing one more piece of miracle software.

In case you missed the recent webinar presented by Gooi’s partners, MQMR and Essent, review it here to learn how you can optimize loan quality to drive your cost per loan down and quality up. There is also a special section to help you prepare to comply with Fannie Mae’s IMPORTANT and upcoming changes regarding pre-funding and post-closing QC requirements.

It’s not news that margins are down and costs are way, way up.

According to the Richey-May Select Q1 2022 Snapshot, the cost to originate increased 33 basis points (10%), or $1,300 per loan (13%) over the quarter. The largest cost per loan increases were seen across back-office expenses, which rose 28% from Q4 2020 and are up nearly $1,000 per loan from Q1 2021.

Outsourcing is an effective cost-saving strategy that can replace staff if hiring and retention is an issue, or it can be used as a seamless supplement to your team. Smart outsourcing of certain tasks and roles or deploying a complete end-to-end solution can improve margins and boost efficiencies in any market but can be especially beneficial in a downturn.

Headquartered in downtown Des Moines, Iowa, Gooi has an experienced, highly trained team who is 100% focused on providing streamlined, accurate back-office services to minimize the effect of fluctuating volumes and staffing gaps. We work in your world and see first-hand the issues you encounter, so we are able to align our team with yours for maximum communication and efficiency. This collaborative approach provides support that can relieve some of the pressure on your management team.

We can effortlessly manage the many guidelines, delivery options, overlays and compliance issues due to working with multiple investors. Our limited warranty minimizes your risk of costly errors due to overworked or undertrained staff. We also hold ourselves to a higher standard than some providers as we are fully licensed in a majority of the U.S. and are working towards obtaining licensure in additional states.

Our variable cost model provides increased lender profitability no matter what the market dishes out. With margins continuing to shrink, our services offer increased cost-savings and value like never before. The end result of our partnership allows your loan officers to do what they do best which is drive originations and generate income without the distraction of operations. If you would like to see how working with us can save you time and money, please contact me today!

By Laura Rosenberger

If you are planning to transition from a mortgage broker or mini correspondent to a delegated
correspondent, there are many things to consider. After determining that you have met the net worth
requirements, let’s examine the benefits and risks for delegated correspondents.

Having delegated authority puts you in the most control and with control comes the opportunity to
manage your pricing margins, processes, overlays and customer service fulfillment. A delegated
correspondent should take advantage of industry tools such as a good pricing engine and loan
origination system. These tools are necessary to manage products, guidelines and to handle centralized
secondary desk responsibilities for registering, locking and delivering loans. These tools can also help
you increase profitability.    

It’s important to diversify your investors as you will want to remain flexible and nimble. Does your
investor allow you to straddle channels, i.e., delegated for conventional products, but non-delegated for
jumbo and government products? Does the investor have support teams to help with scenarios, pricing,
guidelines, bid tape, post-closing and delivery questions? Is the investor representative knowledgeable,
accessible and responsive?  

A risk for a delegated correspondent is a loan not being purchased for a non-correctable underwriting,
closing error or not meeting lock terms, as the correspondent assumes the reps and warranties. You can
manage and offset this risk with competent and qualified staff. It is important to have a good quality-
control program and compliance oversight. If hiring and training processors, underwriters, closers and
auditors is a struggle, consider outsourcing some of these activities. It is generally a variable cost vs. a
fixed cost, and a vendor that specializes in these areas will have more expertise and controls in
place. Consider partnerships with vendors that are relationship driven and have a vested interest in your
success.

Here at Gooi Mortgage, we work best with clients who consider us a seamless extension of their team
and are seeking a business continuity plan that allows for efficiencies, consistency and growth. We are
inclusive and focused on our joint goals of exceeding client expectations. If you would like to learn more
about outsourcing and solutions for delegated correspondents, please contact us – we would by pleased
to hear from you and discuss your situation.
By Laura Rosenberger

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.

By Laura Rosenberger