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Owing to the rising number of foreclosures, mortgage post-closing has taken on greater importance. The post-closing phase involves a thorough check of the loan application for its details, information authenticity, and accuracy. There is rigorous auditing and reporting to confirm the correct loan documentation, and mortgage services outsourcing firms usually offer it as part of their back-office support. Since the internal teams of lenders are generally busy managing the core business areas, companies often opt for an external mortgage service provider. Such a firm possesses the required expertise and resources to carry out all post-closing tasks and maintain higher compliance and quality standards.
An External Post-Closing Services Provider Assist the Lender in The Following Ways:
Accurate Documentation for Greater Compliance
The external agency reviews investor guidelines and prepares a list of missing documents before sharing it with the documents department for further actions. It may also liaise with the other third-parties of the client to retrieve the trailing documents. Upon receiving the missing documents, it again reviews them for accuracy and completeness.
The external firm ensures greater accuracy and compliance in the post-closing documentation process.
Shipping of Loan Files Quickly
Once the vendor team reviews and certifies the loan according to the investor guidelines, it delivers the loan file within the deadline. For this, it prepares the final loan package by collecting documents such as the Trust Deed with Riders, the Note, and Final HUD-1. The team also works closely with brokers and title companies to review the loan audit. The final post-closing package is reviewed before shipping the package as per investor preferences.
A competent mortgage services provider streamlines the workflow and processes more loans within a short period.
Less Load On the Core Team
The nature of the mortgage process is such that it involves immense back-office support from document tracking and reviewing to handling taxes, audits, and insurance. Most of the post-closing service tasks are non-core activities that don’t add to the lender’s revenue. So when the in-house teams involve themselves in these, they don’t get enough time to focus on the core areas to analyze and tackle the market competition. When the client delegates such back-office support work to an external partner, they allow the core team to focus on their competencies to grow the business.
A vendor boosts the efficiency of the internal team by helping them focus on the critical aspects of the business.
Enhanced Capacity to Handle Higher Volumes
For many small and mid-sized lenders, a high loan volume can be overwhelming owing to their limited expertise and workforce. When such a high workload isn’t handled efficiently, it leads to customer dissatisfaction and even disappointment. Hiring an external partner gives a few extra pairs of hands to help manage the additional workload flawlessly. Also, the cost the client bears in hiring a third-party mortgage post-closing services provider is significantly lower than paying salaries to permanent staff.
The complex and time-consuming tasks in the mortgage post-closing process have made it a no-brainer for most lenders to seek assistance from specialists. Outsourcing helps the client deliver quality service while reducing the fixed costs and the turnaround time. The lender gets access to a large pool of mortgage experts who handles the post-closing functions while the client team focuses on mortgage origination and loan servicing.