Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Role Played by a Contract Mortgage Processor on Behalf of Lending Institutions

By Amitaabh Saboo Subscribe to RSS | May 17th 2012 | Views:

Mortgage processing is a tedious activity that involves bulky paperwork. Nowadays lenders are doing business on the internet hence they are piling more electronic documents than actual paperwork. Even though the electronic system is a big help, it attracts many loan applications that most lending institutions are not able to process quickly and accurately. This is why the contract mortgage processor has gained a lot of recognition these days.

A modern contract mortgage processor is more independent than a traditional one. It has a separate business office, employees, office equipment, permit and other things. The traditional or usual loan processor seeks an office job as an individual and is employed on a full-time basis. He or she, therefore, qualifies for monthly salaries, commissions, perks, leaves, overtime and other things as required by the U.S labor laws. A full-time loan processor also has rights for an office space, working equipment, training needs, workmen's compensation and a pollution free working environment among other things.

This makes an internal employee a legal responsibility of the employer. A contract mortgage processor is on the contrary an entrenched company that caters to the needs of its staff. When a lending facility such as a mortgage bank approaches an independent loan processor for business they both enter into a binding contract. They first discuss the terms and conditions of their contract before signing it. The agreement they both enter into gives each party some rights and obligations. This working mechanism is extremely beneficial to mortgage companies that want to excel in a very competitive environment.

As mentioned above, mortgage origination is the most difficult role played by a contract mortgage processor on behalf of loan officers and brokers. They first have to receive applications in a paper or an electronic format. Then they have to contact each borrower personally requesting the necessary documents such as credit reports, bank statements, and proof of employment and so on. Next they have to verify each document according to each lender's instructions and review them to ensure that each borrower can repay a house loan.

It is the role of the processor to help the borrowers as much as possible so that they can go all the way to the closing stage. This is the only way that a contract mortgage processor can make money. An outsourced loan processor is paid a percentage of the total closing fees. The process of originating and closing a loan can attract many errors if not taken seriously. Such errors must be avoided at all costs because they cause delays and might make borrowers lose their loan payments in the future. Silly mistakes can greatly affect a mortgage company negatively if it is ever sued by a section of borrowers.

By outsourcing this job to an external company a lender makes someone accountable for possible errors. A reputable contract mortgage processor can do a great job and will be careful not to make mistakes that would lead to the cancellation of a good contract or litigations. Unfortunately this kind of a company is rather hard to find. There are many outsourced loan processing companies but one has to locate the most appropriate company. Factors such as processing commissions, prior experience and scope of services can guide companies that are looking to outsource their loan processing.

Amitaabh Saboo - About Author:
Mortgage Outsourcing helps many companies cut costs. There are many Contract Mortgage Processor Services that cater to Mortgage Brokers and Lenders nationwide with a structured process to ensure its success.

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

Article Source:

Related Business Articles Subscribe to RSS

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...
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...
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...
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....
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
Practical reasons to choose online bookkeeping outsourcing
Published by Amitaabh Saboo on March 14th 2012 | Business
Small scale businesses need proper financial help to keep their funds and taxes in check. With an in...
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...
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 ...