Finding, hiring, training, managing, and retaining a full-time in-house staff are some of the biggest challenges for organizations servicing the residential mortgage industry. Not only are they time consuming, they can also be very cost intensive and stressful. 

That’s why lenders, banks, brokers, and other companies are increasingly turning to outsource mortgage services to help reduce expenses, improve productivity, and increase customer satisfaction. The following are some of the advantages of retaining an outside service provider for any size company. Take a look and decide if it’s the right move for yours. 

Reduce Costs and Management Time Significantly  

With increasing pressure on profit margins, companies are seeking effective ways to reduce overhead while still delivering high-quality service to their customers. One area they’re focusing on is personnel. According to the Paycor 2021 State of the American Business survey, labor can add up to as much as 70% to total business costs. Employee benefits alone can account for 30%. 

Working with a mortgage services provider can help reduce those expenses. They hire and train top talent with the specific skills you need so you won’t have to and provide them at a more cost-effective rate. Since they offer servicing solutions to several companies, they can offer better pricing than what you would have to pay for an in-house staff. 

Plus, you can scale the size of the staff as needed based on your fluctuating workload. That way, there is flexibility for seasonal or fluctuating volume. This is especially advantageous for smaller and mid-size companies that may not have the budget or space to maintain an internal servicing department. 

Improve Quality, Accuracy, and Production Time 

Mortgage servicing is complex and requires professionals with extremely specific skillsets. Those are the type of team members third-party service providers recruit, so they can deliver the exact expertise you need. With highly proficient specialists on the job, servicing production quality and accuracy improves in many cases.  

Providers also leverage the latest technology and tools, some of which is proprietary. Not only does that also help increase quality of work, it can make project delivery time faster too. Better quality and delivery times ultimately increases customer satisfaction as well. You wont have to worry about upgrading and maintenance costs for the technology either. The vendor does all that.  

By shifting services to a vendor, you can also increase productivity in other areas of your company. Internal staff can focus on other important responsibilities to help your business grow and succeed. 

Qualities To Look For In A Servicing Provider

Ready to look at outsourcing to a residential mortgage servicer to lower costs and improve productivity? Here are some qualities to consider. 

Management Experience: Top-down experienced management team with depth and proven results

• Proven Performance: History of performance as a highly rated special servicer
• Strong Foundation: Financial commitment and backing from its parent company
• Licensure:  Certain mortgage servicing activities require licensure to ensure appropriate licenses are used for all activities
• Proprietary Technology: High-touch, highly configurable workflow for customized management of portfolios
• Custom Client Management: Structure and culture built around borrower and client need
• Communication: Constant, responsive, and clear interactions on a regular basis 

If you don’t need one full time, then talk to them about taking a portion of your workload off your shoulders while you keep the rest in-house. They’ll partner with you to provide the exact solutions you need when you need them.