Top Myths About Outsourcing Mortgage Loan Services

Top myths about Outsourcing Mortgage Loan Services? Well, first, let's consider what's involved in Mortgage Loan Processing. This includes the following high-volume, high cost, time-consuming tasks:

• Confirm the loan has been properly disclosed.
• Order title, survey, inspections and appraisal.
• Order verifications of employment, bank deposits, mortgage, etc.
• Review credit reports and order updates as required.
• Confirm title history of the property for government-insured loans (FHA, VA, USDA).
• Retrieve any documents broker has collected from their LOS platform.
• Upload documents to lender's portal.
• Send completed file to underwriting.
• Clear conditions from underwriting.
• Complete Lender Closing Documents.
• Review and validate the Settlement Statement.
• Schedule and Coordinate the Closing.

Now all of these tasks are part of Loan Processing, and one highly trained individual usually does them. Experience matters, licensing matters, people, and communication skills matter. And, well, a whole lot more…

But the current crush of Mortgage Loan applications has effectively created a job market where qualified loan processers can name their salary. So along with the high cost of paying a processer, retention is also a problem.

But for this problem, there is a solution!

It's called outsourcing, more specifically Outsourcing all the elements of Mortgage Loan Processing, and it means simply that all the headaches associated with Mortgage Loan Processing go away. Hiring, training, licensing, providing benefits, insurance, payroll taxes, worries about employee retention, competition for talent, and a host of other issues are no longer your responsibility!

This is a no-brainer. And opposition to partnering with a Mortgage Process Outsourcing Company sounds absolutely crazy, as well as a just plain wrong business decision. But it happens. Firms worry that they might lose control of servicing a portfolio, and they fear that the outsourcing company might hijack customers and give the names to another firm. The local bank says that in the long run, outsourcing costs the same as in-house. Maybe your clients won't like the idea and go elsewhere for a loan. And if problems arise, you won't be able to address them on time because of a time lag.

Let's Debunk These Myths One At A Time!

• Myth Number 1: Control of your Servicing Portfolio. Yes, it can be an uncomfortable sinking feeling to give up keeping your eye on your staff during the Loan Processing. But try to look at it in a different light. You're not going to hire an MPO that you don't trust. Just like you don't hire a babysitter, you don't count. Or a car mechanic or a lending institution. Trust is essential, and there are many ways to arrive at that feeling of trusting your business partner.
• Myth Number 2: Cost. As we have noted above, yes, it is expensive to process a mortgage loan. Many local lenders say you won't save any money partnering with an MPO but are skeptical of this claim. A recent survey result reports that outsourcing the Mortgage Loan Process can save about 75% over doing the work in-house. If you're still a doubter, outsource a single loan and compare the results.
• Myth Number 3: Security and Privacy. Outsourcing will not result in the theft or dilution of your customer base. Here's why: when you partner with an MPO, they absorb the start-up costs of working with you. They allocate money and resources to your account. From that point on, they want to KEEP your business because they're invested in your success. No one in their right mind would kill the possibility of future revenue for a one-time gain.
• Myth Number 4: Working with an MPO will make your clients doubt your abilities or question your effectiveness. On the contrary, outsourcing the process will allow you more facetime to spend with your clients, and they'll notice that. You'll be able to fulfill more of their expectations about service and cost, making them more likely to return to you for the following loan.
• Myth Number 5: Control of the whole process is lost. Not really. The transparency offered by top-notch MPO makes them as, and many times more responsive than a stressed-out, overworked in-house team. If they find an obstacle or problem in the processing, they'll get back to you as quickly as they can. And they're super-sensitive about the details.

And Now That You Know About MPO, What's Your Next Step?

Hopefully, you'll make a move to lower your costs and trust your Mortgage Loan Services to a reputable MPO that can handle your loan processing, loan servicing, indeed all your mortgage servicing. Let them take the grunt work while you are free to spend more of your time selling more mortgages.