Image source: https://image.slidesharecdn.com/b118a739-03ab-4aa6-9f73-01261a18be23-150711010243-lva1-app6892/95/resume-susana-july-5-2015-2-2-638.jpg?cb=1436576628
No one will dispute the fact that mortgage underwriting and its outsourcing can work great for a bank or a lending institution. It can allow you to continue the processing of a mortgage uninterrupted, even when your bank or financial institution has a much higher amount of work. A few times a year, a financial institution will see the workload spike. The same thing happens when the investors are looking for the right investment and the same applies for home buyers. The outsourcing of mortgage underwriting can ensure that your financial institution will survive and be able to handle that additional workload and here are some things that you should be outsourcing.
Automated Underwriting
One of the biggest benefits for a financial institution nowadays is the use of automated systems. If you are the owner of a small financial institution, then training staff to use the mortgage underwriting software can be placed on the back burner. When you decide to outsource the mortgage underwriting, you will not have to purchase any software which is necessary for the process nor will you need to invest in training anyone. The type of software necessary will examine any risk of extending a loan to an applicant and check for the merit of the approval.
Creating Loan Closure Conditions
If loan officers are already reviewing your loans, then you could outsource the closing stage of mortgage underwriting. An underwriter has to have skills and experience to create the conditions necessary to close a loan. Any additional documentation or information from a borrower may need to be requested so that the final decision is fair. Some of the documents that may be necessary include pay slips, purchase agreements, proof of employment, letters of explanation and credit reports. Outsourcing this part of the underwriting process for the mortgage will ensure that all requirements are met.
Creating Appraisal Review Reports
Appraisal review reports will show an underwriter's perception of the sufficiency and suitability of any security issue as a backup for a mortgage loan transaction. The reports will show a lender that the mortgage underwriting company has already evaluated the credit worthiness of an applicant and has verified that it is in good standing. The reports will also show that a property valuation has been conducted by the underwriter as well. Outsourcing the process of producing the appraisal review reports will prove to be better and faster than with fewer employees in your office.
Appraisal Of Fraud Protection
One of the worst experiences that a bank can go through is being the victim of fraud. Outsourcing this part of mortgage underwriting will enable your financial institution to detect any fraud found in applications. In some cases, forgery of documentation can be found as well as a misrepresentation of the applicant's information. The people you are having the fraud protection appraisal outsourced to have the experience in detecting any suspicious information such as cash transactions, conflicting details and any excessive money deposits or withdrawals which may not be evident to someone with less experience.
