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In the dynamic mortgage market, contract mortgage processing provides a flexible, efficient solution for lenders of all sizes, but especially for smaller to mid-size institutions. As a leader in the field, Willow Processing is committed to helping you understand and navigate the intricacies of this vital service.
Contract loan processing involves outsourcing various mortgage processing tasks to specialized third-party service providers. This outsourcing solution helps mortgage brokers manager the loan process from contract to close (and post-closing). As a mortgage broker, incorporating contract processing into your operations can be a game-changer. In this blog post, we’ll explore the advantages of using contract processing and how it can streamline your business.
Contract processing involves handling the financial documentation needed for mortgage loans. This typically includes proof of income, proof of deposit, and other necessary paperwork. Once you receive these documents from clients, they often need to be re-entered into your system to meet underwriting standards and proceed through various approval stages. This task can be time-consuming and tedious but is crucial for loan success.
Mortgage brokers often rely on contract processors to manage the detailed and labor-intensive tasks associated with handling client documents. For instance, if a mortgage application requires proof of a $2,000 monthly deposit for the past two years, a contract processor can efficiently review and organize this data. This allows brokers to focus on more strategic aspects of their business.
By outsourcing the time-consuming tasks of sorting, handling, and verifying financial information to contract processors, mortgage brokers can redirect their efforts toward sales and marketing. This shift not only boosts revenue potential but also mitigates risks associated with handling complex documentation. With a contract processing team in place, brokers can scale their business without the overhead of full-time staff.
Contract processing offers numerous benefits, regardless of the size of your business. It frees up your time to concentrate on high-value activities such as acquiring new clients and closing deals. Whether you're managing one loan or a hundred, contract processing can help you operate more efficiently and grow your business.
Effective management of relationships with contract loan processing providers is vital for long-term success:
Communication: Maintain open lines of communication. These three things should be standard practice in every contract processing relationship: a Monday morning check in, a weekly 15-minute pipeline review, and a Friday wrap up of where you loan files are at before heading into the weekend.
Turn Times: Define clear turn times on everything from disclosures to conditions. Define how long a processor should go until they follow up on outstanding items.
Cultural Alignment: Ensure that the third-party processor's business culture and values align with your own. This alignment can greatly enhance the partnership's effectiveness.
Contract loan processors provide processing support, enabling brokers to focus on impactful tasks like marketing and client interactions. While it’s up to you to determine the best approach for your business, having a team of skilled contract processors can be a flexible, cost-effective solution. They scale with your needs, offering support when required and stepping back when you don't need them. This can give you more time to enjoy the core aspects of your role: meeting new clients and originating loans. With Willow Processing, you gain a partner that understands the nuances of mortgage processing and is dedicated to ensuring that your needs are met with the highest standards of service and security.
Contact Us here for partnering opportunities.