Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Outsourcing Mortgage Origination – Eight Steps from Start to Close

By Amitaabh Saboo Subscribe to RSS | June 20th 2012 | Views:

Have you ever thought of outsourcing mortgage origination work? Today this is in vogue since many originators have found out that outsourcing is a saving technique. They have realized that assigning work to an external mortgage processor frees time that they could gladly spend in their businesses. Companies have also found that delegating work to a third party allows them to stop investing more money in human resources. Any company, including yours, can benefit from outsourcing mortgage processing work in various ways. If you have not tried it previously, you may want to know how independent contract loan processors work.

There are three important parties involved in this procedure: your company, an outsourced loan processor and a borrower. The information is first exchanged between your company and the company you have decided to use. If the borrower's participation is needed, he or she is notified by you. The order of outsourcing mortgage services is generally the same, although you can expect some variations. Eight steps you should expect include the following.

• Loan application files for every borrower are received and keyed into a processing system owned by the outsourced company. Nowadays many mortgage processors accept electronic applications more than they do hard copies. Both styles are however acceptable.

• The outsourcing mortgage company will request borrower's documentation from your company. These documents includes recent employment pay stabs, rent deposits, bank statements, tax returns, W-2 forms, pin number, credit reports and other personal income source documents.

• All documents are verified to make sure that they truly belong to the borrower who submitted them. Copies of these documents are added to the file containing the loan application form and are sent to a lender. Your loan processor can help the borrower choose a lender, if necessary. Copies of the documents in the file are also sent to the underwriting department for final approval

• Underwriters may request further information from the borrower to help them decide if he or she deserves a house loan. If the underwriters reject a file, it will be returned to the mortgage processing department with a statement of denial. If a borrower's file is accepted, it will be sent back to the processors with an approval statement. Any information from the underwriters will be conveyed by your favorite independent loan contractor so that you can inform the borrower.

• In the meantime, title search work will begin where the title to the property being mortgaged will be investigated. This is mainly done to ensure that the seller of the property has a genuine title that will not put the lender and borrower into trouble after the sale. This is an intricate procedure which requires use of the best title search companies. The lender has to be insured by the borrower via a type of policy called title insurance. By outsourcing mortgage, you will work with experts who have done title searches everywhere in USA and know how to execute things fast and accurately.

• Your external processor will also order the appraisal or evaluation of the property. It automatically approaches the vendor that has been specified in the pre-approved borrower file.

• When the title is ready and the home appraisal process is completed successfully, a lender will issue an approval note which will be sent to your company so that you can notify the borrower.

• The closing stage will begin and the outsourcing mortgage company will work with all parties involved to facilitate choice of a closing date.

Amitaabh Saboo - About Author:
Mortgage Loan Processors helps mortgage brokers and bankers cut costs. There are many Outsourced mortgage loan processing services that cater to Mortgage Brokers and Lenders nationwide with a structured process to ensure success.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Business Articles Subscribe to RSS

A perfect option for start up businesses- accounting outsourcing
Published by Amitaabh Saboo on March 14th 2012 | Business
Setting up an accounting arm for a small business can be highly impractical especially with the popu...
Mortgage outsourcing is a must have for mortgage lenders
Published by Amitaabh Saboo on December 1st 2011 | Business
The process of acquiring a mortgage can be extremely difficult owing to the numerous procedures that...
Things to know before obtaining Birmingham mortgage
Published by Sara Whalen on December 8th 2011 | Business
Buying and selling property was never so simple before. We at Birmingham work towards compiling the ...
The advantages of QuickBooks outsourcing for small enterprises
Published by Amitaabh Saboo on March 14th 2012 | Business
Standardizing your accounting can be tough without the right tools, and people to handle it. Thus, Q...
How to avail a perfect mortgage repayment collector
Published by Ankit Pandey on December 4th 2011 | Business
A mortgage may worry you all through the day, but with the help of the mortgage repayment calculator...
HR and employee benefits outsourcing- an Overview
Published by Julia Roger on January 6th 2012 | Business
HR has always been a vital pillar in an organization. They are important to any company because they...
Business process outsourcing companies help organizations improve back office efficiency
Published by MOS Outsourcing on May 28th 2012 | Business

Business process outsourcing companies help organizations improve back office efficiency by prov...
Tax outsourcing has many advantages.
Published by Amitaabh Saboo on February 2nd 2012 | Business
One of the advantages of Tax outsourcing, is that allows companies to take advantage of costs diffe...
The reason why a business needs an online mortgage loan processor
Published by Amitaabh Saboo on December 1st 2011 | Business
The housing market is one that has a lot of competition, and therefore, a small or medium sized comp...
What steps need to be taken before outsourcing bookkeeping?
Published by Amitaabh Saboo on April 19th 2012 | Business
Owing to its several advantages, outsourcing bookkeeping might seem to be too lucrative to ignore fo...
Online bookkeeping outsourcing: Better outcome at lower price
Published by Amitaabh Saboo on January 6th 2012 | Business
An Online Bookkeeping Outsourcing service happens to be an incredibly popular conception nowadays fo...
What you need to know about QuickBooks outsourcing
Published by Amitaabh Saboo on April 24th 2012 | Business
QuickBooks is a business accounting software tool that can take care of all accounting related requi...
IT Support Outsourcing - IT offshore outsourcing
Published by Darren Serio on March 2nd 2012 | Business
IT support outsourcing - IT offshore outsourcing means relocating information technology, or IT, ser...
Title outsourcing to ease your workload
Published by Amitaabh Saboo on December 1st 2011 | Business
There are many pertinent questions that relate to the sale and purchase of property. Any forward loo...
Grow your ventures with title outsourcing
Published by Amitaabh Saboo on December 1st 2011 | Business
The concept of outsourcing is a relatively new concept that has taken the business world by storm....
Cheap outsourcing solutions v/s quality outsourcing solutions
Published by Lisa Parker on February 6th 2012 | Business
Information technology has been growing tremendously and most of the companies focus on cost reducti...
Why you should compare mortgage rates
Published by Evalongoria on March 1st 2012 | Business
If you own a home, hold a good credit record and are planning to refinance your house with a mortgag...
In what way can you save pounds 20,000 on your mortgage
Published by John Harry on February 15th 2012 | Business
Instead of going in for a mortgage to buy a house, if you take a personal finance, it would be a bet...
San Diego mortgage rate,San Diego lenders,San Diego loan
Published by Darrell Fore on August 10th 2012 | Business
The evaluations on San Diego mortgage rate is often a very good source of details. This way you may ...
The Buzzword in IT outsourcing: Staff Augmentation services
Published by Webmaster on February 5th 2012 | Business
With a population as large as India and dedicated to achieving excellence in the field of cutting ed...