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An Outsourcing Framework

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If you’ve been following our posts, you know we’ve talked quite a bit about the benefits of outsourcing and what to look for in an outsourcing partner. With this post, we’ll take a look at some of the ways we here at String assist mortgage lenders with their loan origination and closing processes. Our intention is not to “toot our own horn”, but to provide you with a framework on how outsourcing could work for you. In the interest of space, we’ll break our discussion into Originating, Closing and Post-Closing and will not spend time delving into the numbers. However, if you are interested in a detailed discussion on time and cost savings, let us know by leaving a comment on this post and we’ll reach out to you.

Originating

Originating mortgage loans requires a significant amount of data collection. Before any final underwriting decisions are made, there are no fewer than a dozen reports that must be ordered and analyzed on both the borrower(s) and the collateral property. Here is the first area where we play a major role for our mortgage lending clients. Our team of experienced underwriters and loan processing analysts will order and upload to our client’s LOS all the required borrower verification reports, appraisal, hazard & flood certifications, tax certs and title searches. These reports will be analyzed by our team as they are received to assure they meet with our client’s requirements. In addition, at our client’s request, we will review contracts and credit reports for completeness and anomalies that could indicate fraud.

By utilizing our offshore operations our clients can realize a cost savings of 35% or greater when compared to sourcing this work on shore or handling it in house. Furthermore, with our 24-hour operation, we expand our client’s processing time while significantly compress turnaround times. Our clients do not have to wait until tomorrow to analyze and upload reports delivered today, as we’ll be doing it tonight.

Closing

Once a file moves to ready to close, the accuracy of the closing documents, specifically the Closing Disclosure, is paramount. Errors will quickly derail a closing and can result in costly compliance issues for you. Here is the second area where our services come into play. Our team works within our client’s application to key in the required information to generate the required closing documents. We then place each document through our intensive quality control process. The result is that our client’s loan package is in compliance with documents that have been reviewed multiple times for completeness and accuracy.

The cost savings and compressed turnaround times discussed above apply here as well, but the more significant advantage for our client is the assurance that the loan package is accurate and in compliance.

Post-Closing

While post-closing is arguably the most important part of the closing process, it is the one area where steps are frequently missed. Oversites such as documents that fail to make it to the registry for recording, missing signatures or investor required documentation that has been misplaced are just a few of the issues that can cause you headaches.  Here is the third area where our client’s benefit from our involvement in the transaction. Once the closing package is retuned, our team reviews the package against our clients check list and closing instructions, assures the completeness of the package and that the necessary documents are recorded. Further, our team will review and confirm that the package meets the investor specified checklist and that the package meet compliance guidelines.

Here again, the cost savings, compressed turnaround times and compliance assurances apply, but for most of our clients the key benefit is that the loan package is ready to be transferred to the investor or sold on the secondary market.

We hope that this post provided a framework in which you can place your loan origination/ closing processes. Keep in mind that outsourcing is not an all-or-nothing option, but an a le carte solution that gives you unlimited flexibility on which and how many services you outsource.

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