Key Benefits of Outsourcing to Third Party Mortgage Loan Processing Companies

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The scope of mortgage processing services includes an elaborate sifting through, assessing, processing loads of paper documents for loan applications. To do this, it requires to perform a range of critical functions which are business acquisitions, underwriting disbursements, appraisal title checks and collections. It is an uphill task for an in-house team to execute such a wide range of critical functions while ensuring utmost accuracy and acceleration. This makes it important to rely on the expertise of third party mortgage loan processing companies. 

Here’s a look at the key benefits of outsourcing to third party mortgage loan processing companies:

Access to expertsOutsourcing to third party mortgage loan processing companies potentially opens access to professionals who have the right kind of expertise to help lenders fulfil regulatory compliance to conducting property appraisals. They do not need additional training or time. They follow industry-standard best practices and advanced tools that aids them to get directly involved in your mortgage business to ensure avoiding any costly mistakes. 

Minimal TAT- Third party vendors ensure a faster processing of mortgage applications by virtue of their abundant resources and technologies. A faster TAT translates into greater business prospects for lenders, thereby boosting the revenue generation prospects and bring financial stability in the business.

Access to cutting-edge technologies Outsourcing mortgage loan process to third party vendors opens access to AI and ML-driven automation technologies at no extra costs. To procure and maintain the tools is a highly costly proposition especially for small and midsize lenders. Moreover, procuring these tools entail training the in-house team to effectively use the tools which further adds to the overall expenditure. Third party mortgage loan processing companies have resources who can optimally use these tools to improve loan processing time, accuracy, and costs.

Adoption of automation – Automation technologies adopted by third party mortgage loan processing companies enable clients to give real-time updates on loan applications to borrowers. Minimal human intervention effectively reduces the chances of errors in the entire gamut of processes. An efficient usage of automation technologies enable client to provide real-time information to their customers instead of having to wait for a month for the same.

Strict adherence to regulations – Third party mortgage loan processing companies are well equipped to ensure utmost adherence to all compliance requirements. For instance, an outsourcing partner can help sorting out data discrepancies that arise out of the variation between closing disclosure fees and the fees quoted in the loan estimate. They record all the procedures of the document audit process to help clients meet the TRID rule during mortgage processing. 

Minimum follow upOutsourcing vendors streamline their process flow in such a way that it reduces the need for frequent follow-up to conduct efficient credit checks. Client will not be required to call customers to know whether they fulfil the minimum credit requirements. This ultimately translates into cost and time savings that can be allocated into other profit-generating activities.


In a nutshell, outsourcing to third party mortgage loan processing companies helps lenders to optimize their operational costs, streamline operations, proper allocation of resources, better customer experience, and most importantly better revenue generation. However, the supply market concentrated with such third-party vendors and lenders are advised to make careful decision prior to finalizing a contract with a vendor. Workforce scalability, quality and security certifications, quality of support for pre-underwriting and underwriting processes efficiency in underwriting, service TAT are some of the factors that lenders must consider before entering into partnerships with third party mortgage loan processing companies.


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