Using a Mortgage Processing Company

Advantages

The biggest advantage of using a mortgage processing company is that it gives you external help from industry professionals without having to hire additional staff. You can use them periodically during the busy season (say spring through fall) then cut back when the real estate market slows down in winter.

Outsourcing the mortgage processing also keeps your lines of communications open more because administrative contacts go through them instead of you. This allows you to focus more on client relationships instead of the administrative side of making loans. If you went into the mortgage industry to focus on sales and marketing, then you could definitely benefit from working with a third party mortgage processing company.

Disadvantages

As with all things, outsourcing your mortgage processing can potentially come with some disadvantages. First, you can’t assume that the processor automatically does business the same way you do. You need to make sure their level of service matches up with your expectations. They may not handle all of the loan types that you offer your clients

Depending on the pricing structure, a mortgage processing fee can also be costly. Figure out how they charge, whether it’s a flat fee per loan or if there is the potential for additional charges as well. Even details as small as who pays for shipping and printing for documents is important to nail down at the beginning, especially if you’re a high-volume brokerage.

Frequently Asked Questions

by Lauren Ward

Personal Finance Writer

Lauren Ward is a personal finance writer with nearly ten years of experience covering topics like loans, credit, and real estate. She lives in Virginia with her husband and three children.