Key Roles and Responsibilities of Mortgage Outsourcing Companies

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Mortgage outsourcing companies offer attractive services to financial institutions that provide home loans. One might think that mortgage processing is a simple task; however, the level of intricacy involved in processing a mortgage application is often very high. Qualified and experienced staff makes the mortgage loan process more efficient, and mortgage outsourcing companies usually recruit experienced loan officers and underwriters; these professionals are critical to effectively managing the mortgage application process and providing outcomes of efficiency, customer satisfaction, and prudent risk management.

Mortgage Loan Officer

Mortgage loan officers start the loan process with the customer, and their role is crucial in taking the application to the next stage, which is underwriting. Since the federal government requires that mortgage loan officers are certified, mortgage outsourcing companies remain compliant by ensuring that their mortgage officers have specialist designation, including Residential Loan Officer. By placing your business in the hands of a mortgage outsourcing company you can be assured that experts in the field are effectively and efficiently managing your mortgage process.

Responsibilities of the Mortgage Loan Officer

The loan officers at mortgage outsourcing companies assist customers in completing the application form. They gather pertinent information from the customer that assist in determining the probability that the loan will be repaid in full. Once the potential homeowner completes the application form the mortgage loan officer will verify the information provided, conduct a thorough analysis of the data, and make a judgment on the creditworthiness of the customer. Loans officers at mortgage outsourcing companies usually demonstrate sound financial judgment, resulting from education and training.

Mortgage Loan Underwriter

The underwriter provides a back office service and will not normally interact with your customers up front. The mortgage underwriter provides a critical role in the mortgage process. There is no loan that will close unless it is reviewed, assessed, scrutinized and judged by the mortgage loan underwriter. This is why mortgage outsourcing companies ensure they are staffed with experts in this area. Good judgment is critical to this role, and their recommendation to grant or deny a loan is often the final step in the mortgage loan process. The mortgage loan underwriters at mortgage outsourcing companies ensure that all loan guidelines are met. They review housing appraisals to ensure that they are not above or below market value so that the actual amount of the loan matches the real value of the property. While many mortgage outsourcing companies use an automated underwriter they still have a team of qualified and experienced underwriters who address gray areas that cannot be solved by automation.

Responsibilities of the Mortgage Loan Underwriter

The mortgage underwriter will assess mortgage paperwork and documents across five key areas: credit, appraisal, fund, income, and title. At the end they will provide a detailed report to substantiate their recommendation. They will provide analyses in the following areas: credit analysis, property analysis, income analysis and title analysis. The credit analysis will determine the applicant’s creditworthiness, and credit reports and documents identifying credit history patterns will be evaluated for evidence of risk. The property analysis involves a review of the appraisal report and all real estate issues are evaluated. The applicant’s solvency will be determined by income analysis; the most important factor here is the ability to pay off the loan. The title analysis ensures that the property and legal ownership issues are verified.

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.