The demand for mortgage processing stayed high in 2021 and shows signs of a steady increase in 2022 too. Aidan Paringer of BNTouch, states that “from integrated home buying services, virtual loan officers, digital mortgages, voice assistants, to crowdfunded mortgages and changing Millennial qualifications, the wants, needs, and expectations of customers are changing.” Goes without saying that Mortgage lenders need to invest time and find ways to improve and invest to create better processes and offer innovative services.
What better way than to dig through some interesting tips and inputs that we shared over the past year. We combed through all the posts and pool the best information in one place. Here are the top 7 blogs related to mortgage origination.
Mortgage origination covers the steps that help to get you into a home, in the simplest terms. The steps here are preapproval, loan application, loan processing, underwriting, and closing. However, the processes are often time staking and pose challenges for both the lender and the borrower. Industry laws and structure impact the speed of the process and cannot be overlooked. Lenders can be resourceful to speed up the closing process and hence retain the borrowers. The post shares a few tips based on our own experience in the mortgage service industry.
Digitization is touted to improve the borrower’s experience and streamline mortgage origination. That is just the simplest way of leveraging technology in mortgage lending. Cloud and automation, in particular, have been restructuring the mortgage origination process. The application of technology to innovate and ensure faster mortgage processing and closing has been on the rise. The blog explains mortgage lenders have been leveraging technology to deliver a digital-first borrowing experience and improve customer experience.
With the changing mortgage landscape and increasing competition, most lenders are now focusing on reducing the turnaround time. While investing in technology, streamlining operations, and many other methods help in standing ahead in the competition. Other solutions too are coming to the fore to improve service and flexibility. Most Contract Mortgage Processing Companies are said to allow lenders to reduce their mortgage processing time by almost 50%. Read the post to learn why contract mortgage loan processing could be the one-stop solution for lenders.
While the increasing volumes of mortgages may come as a boon for lenders, fresh purchases and refinance require faster-error-free processes to improve the closing rates. The post discusses how the metric called closing ratio can be improved upon.
Mortgage process outsourcing is growing to be a popular approach used by mortgage lenders. Over the years, outsourcing has proved to enhance efficiency, compliance, help scale, and support growth without affecting the cost. If shortening of turnaround time is one of its prime benefits, the added value that outsourcing brings, including a connection with industry experts, are other factors that have made mortgage outsourcing popular. The post shares some interesting insights on how mortgage process outsourcing benefits mortgage lenders.
Mortgage origination is a step-wise process and underwriting is considered the most crucial step. The process involves conducting an in-depth assessment of the borrower’s financial background, verifying assets, income, and overall credits to see if they are eligible for the mortgage.
Each mortgage application is checked for errors, inconsistencies, and potential risk factors. Details are verified by contacting the applicant’s employer, confirming the credit reports, etc. All of which are time-consuming and use many software programs, formulas, and validation databases. The process is only completed when the underwriter approves, suspends, or denies the application and sends it back. Any issue in the process would mean getting started from the beginning and hence affecting the progress and increasing the waiting time. The post discusses the role of a mortgage underwriter and highlights the common issues that affect the underwriting process.
In mortgage origination, no matter how fast the process is, quality shouldn’t be compromised. Checking the validity of documents, cross verify their authenticity, and most essentially ensuring that genuine loans are sanctioned, are important steps that cannot be rushed. QC hence is very important. The post talks about some common mistakes lenders make during loan origination.
Peoples Processing is a leading mortgage service provider. Over the years, we have successfully assisted mortgage lenders with efficient origination and support services. If it is a trusted mortgage servicer you are looking for, your search ends here.