Outsourcing critical business processes isn't a new concept. Historically driven by cost reductions and efficiencies, outsourcing can positively impact lenders as they expand their operations to compete on a larger scale. When lenders enlist the help of a third-party service provider to handle the complexities of mortgage fulfillment (underwriting, processing, and closing), it frees them up to focus on their customers and develop new ways to increase profitability. It's not only about quantifiable profit. It's about quality of service. You work hard to maintain your customer relationships, so your partners should become an extension of your brand, ensuring the relationship remains intact. That's precisely the type of partnership Computershare Loan Services (CLS) offers. Elizabeth Baumeister, Head of Originations for CLS, says, "We offer a full menu of originations fulfillment solutions. Whatever the market, we can augment a client's existing process, enabling them to expand and shift with their opportunities. Our job is to listen to each client and leverage our tenured staff across the country to support the clients' priorities and culture as we work to achieve their production & financial goals." Financial institutions of all sizes can reap the benefits of outsourcing:
1. Reduce overhead and operational costs
Outsourcing mortgage fulfillment can turn fixed costs into variable costs, helping lenders manage expenses and expand their customer reach. Staffing, including recruiting and retaining talent, takes time and adds significant costs to a lender's bottom line. Outsourced fulfillment places the burden of staffing on a 3rd party, allowing you to drive more originations and continue to build your business. That flexibility can give you a competitive advantage.
2. Increase efficiency and capacity
In the mortgage market you can count on one thing—things don't stay the same for very long. As rates stabilize and eventually drop, in-house teams could easily be overwhelmed by loan applications. With the right partner, backlogs can be avoided, and staff can be allocated appropriately. With our highly-trained processors, underwriters, and closers—your borrowers will get to the closing table on time. Lenders can rest assured the fulfillment process is tightly managed from processing to closing, and volume demands are met with ease as the market fluctuates.
3. Increase revenue
The MBA's 2022 Q3 Quarterly Mortgage Bankers Performance Report states that total loan production costs have exceeded $11,000 per loan and average personnel expense is up to $7,325. With originations costs skyrocketing and volume down—now is the time to find relief by outsourcing your fulfillment functions. Leverage our 20 years of experience and top talent to help you with your entire pipeline, from conventional, non-QM, and FHA loans to multiple product types, including HELOCs.