The following are excerpts from the June edition of Mortgage Technology magazine. To read the full story and much more,
Outsourcing typically conjures the image of a complex offshore where menial and mundane tasks are performed, call centers are staffed and other human-intensive tasks are performed by cheap labor. But that’s a far cry from today’s outsourcing, claim vendors who provide mortgage outsourcing and technology services to the mortgage industry.
Large originators and servicers have long relied on the efficiencies and cost savings of outsourcing, some going as far as building their own offshore facilities, known as “captives” among business process outsourcers. But now, outsource vendors are offering custom fulfillment services, combined with loan origination technology, to small and midsize lenders.
By providing both the technology and the outsourcing, workers at both the outsourcer and lenders have access to the same Web-based systems and workflow.
The outsourcer can conduct any combination of underwriting and settlement services tasks, as well as closing and post-closing delivery. Some lenders chose to handle certain steps in the process and outsource others. Since both sides are using the same technology and workflow, the partnership is more integrated.
By outsourcing the back-office operations, small lenders can realize cost savings up to 30%.
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