Lower volumes are also impacting the mortgage industry as a whole. Besides originators, those impacted include title companies, AMCs, and all other related service providers. Among the many challenges facing lenders in the rising rate environment of 2022 are margin compression, lower overall revenue compared to previous year, and the adoption of new technologies.
The situation is compounded by the fact that interest rates are projected to continue to increase through 2022 and beyond. This will put further pressure on margins and force companies to make tough staffing decisions.
Outsourcing is one way for industry participants to reduce costs and remain competitive in this challenging environment. Outsourcing can help lenders focus on their core competencies and leave the non-core functions to the experts. This will help save money and improve efficiencies for both lenders and mortgage service providers.
Here are the top five reasons lenders should consider outsourcing their mortgage processing services.
When mortgage lenders outsource their underwriting and processing services, they can save a significant amount of money on labor costs. This is because these services can be performed more quickly and efficiently by experienced professionals who are familiar with the process. Additionally, by outsourcing these services, lenders can avoid the need to hire and train in-house staff to perform these tasks.
When lenders outsource their mortgage processing services to Ascendum, who works with multiple clients across the industry, they can be assured that Ascendum can bring best practices that can help to enhance the entire process and, in many cases, has proven to improve quality.
By outsourcing their mortgage processing services, lenders can free up time and resources that can be better spent on other areas of their business. This increased capacity can be used to grow the business or to improve customer service levels.
When lenders outsource their mortgage processing services, they can choose to use a variable cost model for staffing, where the service of an external provider is used on an as-needed basis. This allows them to scale up or down their use of these services as required, which can be beneficial when demand is high or low.
When lenders outsource their mortgage processing services, they can have peace of mind knowing that the work will be carried out by a reputable and experienced company. This can provide reassurance that the process will be handled efficiently and effectively, and that any problems that do arise will be dealt with quickly.
With more than 10 years of experience, Ascendum KPS provides a variety of processing services and digital solutions to lenders and servicers (including digital transformation and RPA solutions), focused on improved quality control, reduced turn times, increased compliance, and lower costs leading to a more enhanced borrower experience.
