Top Three Mortgage Underwriting Services

Many financial institutions today are engaging mortgage underwriting services to ensure that their operations are agile and that this process is handled with the highest level of expertise. These services are a tremendous benefit to financial institutions, as they are executed without the burden of a large internal headcount. The mortgage underwriting process must be thorough and due diligence effectively carried out to ensure that the loan portfolio of a financial institution has minimal risk. Mortgage underwriting involves the evaluation of borrowers against stipulated criteria to ensure that the risk is negligible. Financial institutions sell mortgage loans in large quantities, and mortgage underwriting services provide timely and accurate results on the creditworthiness of a potential borrower. It is in the best interests of financial institutions to outsource this process to improve customer satisfaction regarding time frames for loan processing, and effectively manage risk. Additionally, there are several value added advantages derived from utilizing underwriting services that would not be readily available if provided through internal staff.

Automated Underwriter

Since borrowers are evaluated against a fixed criteria automated systems can easily run a report on the feasibility of approving a loan to a potential customer. An automated system evaluates each borrower in a very short space of time, based on the information provided on the application for the loan. Once the information is verified, the data can be inserted into the automated underwriter and a response generated almost immediately. The response indicates whether the loan should be approved or denied.

Home Appraisal

One of the functions offered by mortgage underwriting services is providing an appraisal of the home for purchase. Both federal and individual financial institutions have implemented rigid appraisal guidelines following the real estate ignominy in 2002. It is imperative that mortgage underwriting services adhere to the financial institution’s guidelines. The appraisal review will provide the underwriter’s perspective on the value of the property to ensure that it is not above market value. Make sure that your mortgage underwriting service reviews the sales history of the property, and assesses appropriate comparable properties. The appraiser’s signature and license number must be checked for authenticity.

Fraud Reporting

To assist financial institutions in avoiding fraud with house loans, mortgage underwriting services will provide a fraud guard review. Loan files must be carefully scrutinized for incidences of fraud. Mortgage underwriting services are experts at accessing archived appraisal data, detecting fraudulent appraisals, and uncovering red flags that are indicators of fraud. Financial institutions need to protect themselves from the risks and the exorbitant costs associated with mortgage fraud. Financial institutions must implement vigorous operational controls, policies and procedures aimed at fraud protection and detection. Mortgage underwriting services usually meet and exceed these standards to ensure that their clients are well protected and can rest assured that the propensity for fraudulent cases to be approved is negated.

Banks and other lending institutions are outsourcing to mortgage underwriting services to provide these three critical functions that protect their companies from fraud, provide accurate appraisals, and offer timely completion of the underwriting process. This reduces the bank’s headcount significantly and provides them with an opportunity to improve customer satisfaction regarding loan processing time frames.

Mortgage Loan Processors helps mortgage brokers and bankers cut costs. There are many Outsourced mortgage loan processing services that cater to Mortgage Brokers and Lenders nationwide with a structured process to ensure success.