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Titan Lenders Corp. has been founded on the principle that mortgage lenders should
aggressively focus on their front-end profit generator – origination, rather than attempt Our outsouce fulfillment and mortgage consulting services include: We won’t sacrifice Quality for Volume - EVER. Contact us to learn more |
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Domestic Outsourcing for the Mortgage Industry
Domestic Outsourcing |
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What is Outsourcing? Outsourcing is a decision made by an individual or organization to give work, labor or operational responsibility to another organization that specializes in a particular area of need. It is no longer a practice specific large organizations. It has become a business fundamental. Why Outsource? Businesses are returning to proven theories and best practices to improve operational efficiencies that increase product and service quality with a focus on cutting expenses wherever possible serving to fuel and sustain competiveness and viability. Why Outsource Mortgage Operations? One of the oldest and most proven business best practices is this: "Focus on your core competencies and utilize the core competencies of others to your advantage." In the mortgage industry, it doesn't take long for one to learn that a "jack of all trade and a master of none" will not long survive in a volatile market. In fact, they will find it very difficult to stay profitable and differentiate themselves from their competition. The loan life cycle is multi-faceted. There are countless steps, validations, checks and balances that occur from approval through closing to sale. Just as maintaining an internal IT infrastructure and IT staff support is not cost effective for most small to mid sized lenders, so too maintaining systems and specialists to manage a loan throughout its entire life cycle can quickly become both cost prohibitive and unfeasible. Bottom Line: It isn't cost effective to maintain inefficient processes. If it isn't a core competency, give it to someone who has that skill set to manage the process for you and is willing to back up their work with reps and warrants. Why Outsource Mortgage Processes Domestically? The hardest thing about any type of outsourcing is outsourcing to the right group. For what we do in the mortgage industry, there is a huge argument to be made for keeping “many of the” outsourced mortgage processes here in the United States. The US Mortgage Industry is an animal indigenous and particular to the US economy. There is no Secondary Market in the world like ours. Not surprisingly, many in the industry have outsourced mortgage processing functions to offshore companies to save money on the front and back end. Many have also come back complaining of excessive data and document errors and inconsistencies. These errors and inconsistencies have contributed to lender losses actively occurring in our industry today. Quality should never be sacrificed for quantity - we all now see the result of profit driven decisions that err on the side of increasing margins rather than ensuring portfolio quality. Furthermore, some things just don't outsource well offshore. First in the area of direct customer communication, mortgage lending and all the surrounding rules and regulations are difficult enough to explain and describe in our own native tongue with a general understanding of and the right to homeownership. Foreign data processors are fundamentally at a disadvantage trying to understand how it all works in a second language. Secondly, is exporting sensitive consumer and financial data overseas a wise practice? United States consumers have been plagued by identity theft at staggering rates over the last several years. Distributing sensitive information into areas not completely under the control of stringent domestic regulations and US oversight “can be” an unnecessary risk. Communication is key to quality execution and quality customer service. At Titan, our personnel are experienced and live in a worldview that includes mortgages as commonplace in their everyday lives. We know what a mortgage is and can communicate on every process level.
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