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What Role Can BPO Play in the Mortgage Industry?

Employees spinning oversized gears to improve business processes

Business process outsourcing (BPO) can play a vital role in streamlining your mortgage processes for efficiency, accuracy, and compliance.

BPO involves outsourcing work to a third-party service provider who specializes in one or more business functions of a company. As opposed to hiring a consultant or working with a staffing agency to fill a need, hiring a BPO service provider offers a more holistic, tailored solution to your needs. But what exactly does this mean – and how can it improve your mortgage organization?

The (Many) Benefits of Mortgage BPO

Mortgage BPO services are designed to help organizations overcome common challenges and reach business goals in the most efficient, cost-effective way possible. Here are a few benefits you can gain by outsourcing:

Increase Productivity

It’s an inevitable fact: mortgages = paperwork. Lots of it. And this paperwork takes a great deal of time to process and manage. Done incorrectly, and you can end up with missing documents and slow turnaround times. This can lead to several other issues – from failing to meet deadlines to providing less than satisfactory customer service. With BPO services and technology from a trusted partner, however, you can rest assured that your mortgage documents are handled properly and your processes are streamlined – even during high-volume periods.

Save Money

One of the most attractive benefits of mortgage BPO services is cost reduction. By outsourcing, you convert from a fixed cost model to a variable cost one and prevent a costly mismatch between staffing levels and demand. You get the expertise you need when you need it without having to staff up for a period of temporary or seasonal surge.

You can also avoid having to lay off employees in order to reduce costs during slower periods. According to National Mortgage News, one large mortgage lender recently reduced headcount and expenses by approximately 20% in an effort to improve its cost structure during a period of low mortgage volumes. You can prevent a similar situation by outsourcing.

Boost Morale

For small and large organizations alike, outsourcing business processes helps increase efficiency while decreasing manual labor. This allows employees to focus less on tedious tasks and more on core functions, which in turn provides them with a better sense of purpose.

A McKinsey study found that 70% of employees feel that their sense of purpose is defined by their work. When employees can’t find purpose in their day-to-day jobs, they’re unhappy, less productive, and more likely to leave. Therefore, ensuring your workers can focus on doing what they do best so they feel valuable is critical – especially during “The Great Resignation”. And outsourced services can help you achieve just that.

Mortgage BPO Services in Action

The role of BPO within your organization depends on the scope of your needs. BPO is multifaceted, aiding in all areas of business to scale impact without raising costs.

Several mortgage lenders outsource mortgage quality control audits to save money and ensure compliance simultaneously. Utah-based First Colony Mortgage spends 15% less on mortgage QC by outsourcing audits to MetaSource. “It may initially appear cheaper until you take into account the costs of hiring and managing people,” the company’s compliance CEO and head underwriter reported.

Outsourcing also means the company does not have to devote time to keeping up with frequently changing QC requirements. First Colony’s compliance CEO and head underwriter also said, “Fannie Mae and Freddie Mac have many QC requirements and MetaSource keeps up with them and ensures we are in compliance – a load off of our plate.”

And that’s just one example of how the right BPO partner can help you do more with your time. You can take advantage of several mortgage business process outsourcing services, including:

  • Mortgage quality control (QC) audits
  • MERS compliance
  • Mortgage due diligence
  • Whole loan purchase review
  • Loan boarding
  • Trailing document
  • Digital mailroom
  • Assignment of mortgage (AOM)
  • Lien release

Finding the Right Partner

The right partner will understand the nuances of the mortgage industry, your specific needs, and how to leverage technology to streamline processes.

When interviewing a mortgage BPO services provider, be sure to evaluate their industry expertise and the technology they utilize. We recommend that you request a client referral – reputable companies will be happy to connect you with an existing client to better understand the quality of their services.

As a trusted mortgage industry partner, MetaSource has decades of experience in business process outsourcing and compliance. Speak with one of our mortgage BPO experts who will evaluate your situation and identify outsourcing options for you to consider.

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