Define Mortgage Underwriting Services and how lending companies can benefit by outsourcing mortgage?

So, you have been looking at homes for weeks and you finally found one you just loved. Kitchen with granite counters? A big balcony, check! A Big backyard for your dog, check! It is all fun and games until you come across the mortgage process.

The next step is to choose the right lender, gather your documents and start the mortgage underwriting process. All this sounds boring, doesn’t it? But understanding all this underwriting stuff is an important step of getting your sweet home. 

Whether you are a seasoned homeowner or a first-time homebuyer, the mortgage broker underwriter acts as your helping hand during the home loan process.

He determines whether you are able to pay back the home loan if they provide you a loan to finance your home. Not only this, he is the one who can approve, suspend or even decline your loan application file. 

Whereas, the services provided by mortgage underwriters are called Mortgage underwriting services. They include;

• Collection of documents

• Look at borrower’s debt-to-income-ratio and loan-to-value-ratio

• Verification of borrower’s documents 

• Checking of borrower’s credit history 

Indirectly, they help the lenders to understand your financial situation including borrower’s income, employment, cash reserves, equity investments, financial assets  & liabilities and other risk factors.

What is the Mortgage Underwriting Process?

Mortgage Underwriting Process is all the steps an underwriter goes through to evaluate your borrowing capacity and collateral after you apply for a home loan. 

This process has many steps to begin with, they are as follow in the infographic below;

Mortgage lenders or lending companies all agree that to process all these steps requires highly trained underwriters to work. 

Moreover, they find it difficult to optimize their business, mitigate risks, or even do not get enough time to grow up their business volumes, that is why they prefer to outsource mortgage underwriting services to mortgage processing outsourcing companies. 

These are the third-party service providers that aim to offer accurate, cost effective and time bound residential loan underwriting services to small & large banks, lenders and credit unions.

Their mortgage loan underwriters are also best at Manual underwriting mortgage which is not an automated system such as program and software but a process in which the mortgage application is manually written, and reviewed by underwriters. 

It is the process that makes the home loans accessible. The reasons why people use manual underwriting include higher debt to equity ratio, lower credit score (below 650) and if you have foreclosure, bankruptcy and recent financial problem. 

You can go for manual underwriting for mortgage if you believe that your particular situation will not be fully understood by an automated system. 

Benefits of mortgage process outsourcing to the lending companies -

• By outsourcing of all back-office tasks, lending companies can get more time to improve relationships with customers.

• Outsourcing provides the Mortgage lenders free time to spent 

• They can focus on core mortgage operations such as payment processing, accounting and investor relationship management 

• Accessing big data analytics is not affordable for all banks and businesses but outsourcing makes it happen which indirectly increases the profits and customer satisfaction.

• With outsourcing the mortgage underwriting services, mortgage lenders get access to the latest digital technology by default. Besides, as they do not have to buy the offices and infrastructure directly, they never have to worry about the upgradation and maintenance costs either.

• Mortgage outsourcing service providers charge reasonable fees or customize their fees according to your requirements.

• One of the benefits of outsourcing mortgage processing is that such tasks are completed by trained processors and a highly skilled team of underwriters. 

One of the bestest mortgage processing outsourcing companies is MaxBPO that helps you to get a mortgage and allows you to apply for multiple mortgages at the best rates. Not only this, we also guide you in the situation when the lender rejects your request for a loan. 

Besides, we improve your chances to get your mortgage with your next application. 

Skills our team of underwriters have - 

• Ability to analyze sensitive data and assess risk

• Basic computers skills

• Familiarity with software products related to areas of accounting and finance

• Constant flow of communication and productive team

• Goal oriented and strong ethics 

The outbreak of pandemic turned out 

So if you are planning to outsource mortgage underwriting and commercial mortgage underwriting, MaxBPO is the best mortgage loan processing company.