The mortgage industry has seen a lot of changes brought about by the biggest economic downturn in recent years. Mortgage companies are now facing tougher challenges related to price wars, new CFBP regulations that are adding penalty risks for non-compliance as well as increase in loan demand.
These combination of factors have been contributing to the decision of many banks and mortgage companies to engage the services of BPO companies who can help them address these issues. These BPOs’ services may include accounting outsourcing of mortgage-related tasks, such as loan processing, underwriting, closing, post-closing, appraisal, title ordering, title examination and title insurance.
Mortgage outsourcing aims to help banks and mortgage companies succeed in this more competitive landscape so as to maintain the lowest cost per loan, handle more loan cases and maintain a loyal customer base.
Some of the common benefits that mortgage outsourcing can offer includes:
- Access to the provider's expertise and knowledge of mortgage standards and regulations thereby ensuring compliance.
- Increased flexibility to handle industry or technology-related changes.
- Reduced costs from lower infrastructure and overhead requirements.
- Updated and integrated automated systems.
- Increased efficiency due to higher accuracy.
Aside from these though, there are a few other unknown benefits that mortgage outsourcing can provide and these are as follows:
Applicable for both large and small banks
Many people make the mistake of thinking that outsourcing can only benefit larger companies or enterprises. However, even smaller community banks and lending companies, who are more at risk of going under, can benefit from it as well.
Certainly, big banks and mortgage companies may have the required resources to help them handle the industry's many challenges. However, even these large companies are also looking for ways to cut down on costs and one way to do that is through outsourcing all or part of their mortgage processing tasks.
The mortgage industry operates in a cyclical nature that demands companies to streamline operations and minimize operational costs. Streamlining results to improve efficiency and higher accuracy, which allows companies not only to close loans faster but also to maintain the lowest costs per loan, handle more cases and keep up with demand.
Improves customer satisfaction
Competition in the industry now is tougher. The last thing banks and mortgage companies want is to lose their customers to their competitors.
BPOs can help companies with all their back-office processes, which will give banks and mortgage companies more time to focus instead on improving customer relationships. The accelerated life cycle of loans also helps minimize errors, fines and troubleshooting, which likewise increases customer satisfaction.
Reduces time and attention required from managers
Mortgage processing requires performing complex tasks, which need to be supervised by middle and senior management. However, outsourcing these tasks to BPOs will lessen the amount of time and attention these managers spend on them. This will leave them more time to focus their talents and expertise in managing the core activities instead, which will help maintain high levels of service and quality and improve the company's bottom line.
These benefits can help your business overcome operational shortcomings, realize substantial cost savings and gain a competitive advantage. If you are thinking of taking the outsourcing route for your business, inquire about Infinit Accounting's mortgage processing services now.