Why Outsource Mortgage Processing?
I’m sure you’ve been there. The summer has hit and the winter lull you have been in quickly escalates to full on panic mode! The office is in a frenzy because rates are good (or decent at least), borrowers looking for their dream home are calling, and the loans are piling on top of each other. Maybe you are in the beginning stages of trying to shift vacations around so everyone will be taken care of and, most importantly, close on time. Look no further, because contract mortgage processing is the perfect fit to fill that need.
Why should contact processing be considered? Here are just a few reasons outsourcing your processing needs should be your go-to this summer and beyond.
No need for Human Resources - Without an in-house processor, you don’t have to worry about payroll or benefits expenses. Contract processors are self-employed, so all you have to do is start the relationship with them and they do the rest. They take care of their own income taxes and their own benefits. You will have no concerns about complying with Fair Labor Standards regarding pay, overtime, benefits, holidays, or Family Medical Leave. Contract mortgage processors are licensed under the state and they take care of their own accounting. Less work for you! No need for Training - Training is time-consuming and expensive. Reduce the need for training your in-house processors and keeping them up-to-date with the daily changes to the regulations and guidelines. As I mentioned, contract mortgage processors are licensed by the state, that means they attended an accredited training program. Contract processors also are required to complete the state-regulated required continuing education hours each year to keep their state license current.
No need for additional Office Expenses - Office space, computers, software, telephones, internet, office supplies, and other support costs are expenses that must be paid for every employee. Outsourcing passes these expenses to the contract processing provider.
Now that we have covered the cost-effectiveness of a relationship with a contract mortgage processor, here are a few other reasons outsourcing your processing needs is vital to your business.
Pipeline Fluctuation – Even if you have in-house processors, the volume can sometimes exceed the capacity to meet closing goals. Outsourcing allows these pipeline spikes to be handled in a timely manner in order to keep those clients happy. Once the relationship with the contract processor is established, the outsourced processing company can help fill needs easily. Vacations, maternity leaves, or unexpected medical leaves are perfect times for contract processors to come in and save your pipeline from tanking.
Time management – I'm sure you know, mortgage loan officer's make the best use of their time by originating loans. Contract processing allows them to drastically reduce the time spent on the mundane tasks related to loan processing and related client communication while freeing them to do what they do best – generate new loans! Let a contract processor take care of all of the communications and paperwork involved in making sure a mortgage closes on time, every time.
Ease of Payment – Contract processing fees do not fall under the Qualified Mortgage regulation mandated by the CFPB (Bonafide third-party charges not retained by the creditor, loan originator, or an affiliate of either (§ 1026.32(b)(1)(i)(D)). The contract mortgage loan processor sends an invoice for services to the title company and it is paid by the borrower as a bonafide third-party fee on the closing disclosure. This fee is excluded from the allowed fees and charges under the QM rule. It is not included in the 3% origination fee allowed under the rule.
The benefits of building a relationship with a contract mortgage loan processor will put your mind at ease during those busy seasons of your business. At Elite Mortgage Processing, we are determined to not only contribute to your business but help you reach your business goals. Contact us today to turn your business dreams into reality!
