Owing to the high foreclosure volumes and the ensuing regulations and scrutiny, mortgage post-closing services have become a genuine concern for lenders. The stakes are high and you must ensure an error-free execution of the process that involves a bunch of tasks including reviews/HMDA audits, documentation, data audits, title recording confirmations, and more. This has led to an increasing number of lenders partnering with an external firm that offers quality back office post-closing support services at significantly low costs while improving the overall turnaround times.
Here are a few of the primary reasons why outsourcing post-closing services is a prudent move for your mortgage business
A reliable mortgage post-closing services provider would have the right workforce and tools to handle the intimidating volume of work with ease to raise the overall efficiency of your operations. Your internal team can now actively participate in other major revenue-generating aspects, which otherwise isn’t possible as they immerse themselves in the tedious post-closing tasks. The rate of approvals of genuine applications will also be significantly high.
Improved Regulatory Compliance
An expert mortgage post-closing services firm would ensure the unhindered flow of information and complete adherence to the rapidly changing industry regulations. The professionals would meticulously check all loan documents, property details, and appraisal and underwriting reports to make sure all information is per the federal guidelines. Any reliable mortgage services firm would keep the approval process audit-ready at all times by strictly following the industry best practices and an extensive documentation process.
The sheer volume of documentation involved in the mortgage post-closing phase can discourage your team that is already functioning under immense pressure to manage the other aspects of the loan process. An external mortgage services firm can help you thoroughly review the information furnished by the applicant and verify its completeness, accuracy, and integrity. The vendor team would collect the necessary information and trailing documents by following-up with third-parties and connecting with the borrower. It would help your team with the assignment, lien release, and issuance of the final title policy after the successful execution of the documentation task.
Since your dependency on the internal team drops drastically with the entry of an external post-closing services firm, the overall spending also goes down. Outsourcing firms offer services at surprisingly low costs and the methodologies they apply to your workflow reduce the fixed expenses. A competent vendor would enable you to convert a significant portion of the fixed costs into variable costs. The costs of the post-closing phase can also be budgeted as a per-loan charge.
Better Tools and Technology
The cutting edge tools used by the vendor help you keep pace with the evolving dynamics of the industry. The vendor can assist you in registering the approved loans with the Mortgage Electronic Registration System (MERS) to facilitate easy tracking of loan servicing rights. It would also be responsible for ensuring total information security and confidentiality.
A truly reliable mortgage post-closing services provider would help you meet your company’s obligatory compliance requirements and establish an error-free post-closing process. Besides operational efficiency and cost savings, you get the opportunity to scale operations and expand your footprint to other geographies.