Improving Your Mortgage Process by Learning from Experts
by Alok Bansal
Mortgage processing usually takes up to 50% of the total closing cycle time. Furthermore, the quality of processing can have a significant impact on the closing ratios. Not to mention, it forms a major part of the loan production cost. Lenders who are leveraging the right technology and global delivery model in processing can reduce their cycle time by 25% and reduce their loan production cost by up to 30%.
Lenders should partner with global business process management (BPM) firms with a strong technology base. Reputable firms handle variability in volumes and have the technology tools which will help lenders better manage the seasonality of the mortgage business without increasing the fixed cost of having an internal workforce.
Efficient and comprehensive process management services
Leading BPM firms offer highly efficient mortgage processing services that span the entire origination cycle, from initial document capture, document ordering and verifications, conditions resolutions, to trailing document support, etc. Economies of scale help these firms deliver high quality, cost-effective services. Having worked for multiple lenders provides them cost-efficient vendor services which areeventually passed on to the clients. Moreover, technology-led BPM firms use specialized software and high-end document capture equipment that is much more efficient than most lenders’ internal infrastructure.
Importance of digitally enhanced processing
Digital transformation offers three main enhancements to mortgage process management firms – faster processing, faster communication, and improved accuracy. By replacing manual chores like data entry with automatic document capture and indexing, these digital tools reduce processing times from hours to minutes. Mortgage processing teams that use integrated tools to send order results directly to their clients’ LOS applications (instead of via email) save several hours of clicking, copying, and pasting each week. Digitally enabled service providers that employ a combination of OCR, machine learning, and manual “white-glove” validation save their clients from non-compliance, rejections, and other forms of business risk that take a great deal of time and effort to address.
Advantages of hybrid onshore-offshore delivery
Global process management firms offer an additional advantage. By operating on multiple continents, global firms can offer a hybrid onshore-offshore delivery model that marries the cost-effectiveness of offshore resources with the expertise of onshore service providers. Paper documents and sensitive information can be handled onshore while experienced offshore personnel performs bulk processing after regular business hours. Virtually overnight, his onshore-offshore model can transform your firm into a 24-hour mortgage processing operation.
What to look for in a mortgage BPM firm
When lenders are evaluating potential partners, the degree of technological sophistication of the potential partner is often the deciding factor. The lenders should avoid conventional outsourcing companies that rely primarily on manual entry and generic project management tools. Instead, they should look for organizations that are highly experienced in mortgage processing services and use industry-specific technologies.
The ideal BPM partner will also offer the complete range of digital mortgage services that your firm needs. Instead of engaging multiple service providers and passing loan documents back and forth between different partners, a single firm that offers a complete range of mortgage processing services under one roof will offer much better value, and you’ll avoid a lot of potential confusion.
To discover mortgage origination services or to learn more about our optimized onshore-offshore hybrid delivery model, please contact Visionet Systems and schedule a complimentary consultation session.