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Cut cost, and keep your doors open
Mortgage company owners are making hard decisions to
stay ahead. They realize the time to do so is now. They
are cutting cost in all corners, in particular, in
marketing. Eventually they realize that they can’t forgo
marketing altogether, so they look elsewhere: in-house
processing. Typically, a $30,000 to $70,000 salary and
bonus-structure expenditure, is spent per processor, not
to mention benefits, office space, etc. Many owners are
realizing that they don’t need to have 2 or 3 processors
when the number of files coming in and closing is low.
Many mortgage company owners are even realizing that
they can do without in-house processing, at least, until
they ride out this unpredictable market. Looking at what
many national lenders have already done to stay
competitive, local business owners are searching for a
reliable outsourced processing center, to once again
give them a competitive edge to stay ahead.
Some of the bigger mortgage player have already adapted
to a centralized processing center, with great success.
The most notable example is perhaps Bank of America.
Revamped mortgage Process Created Demand
By JACK LYNE, Site Selection Executive Editor of
Interactive Publishing
BOA's about-face on the Wichita facility wasn't driven
by indecisiveness. What the switchover was about was the
striking success of the company's revamped
mortgage-generation process.
"Loan Solutions" is BOA's moniker for its overhauled
modus operandi. Loan Solutions jettisons the bank's old
system, which required all customers interested in
mortgages to interface only with designated mortgage
representatives. But with the new setup, customers now
can talk to any BOA representative to generate a
mortgage.
Combined with new technology and software, Loan
Solutions is slashing BOA's total time to close a
mortgage from 30 to 45 days to 10 to 14 days. The
speedier new system has proved to be a hit with
customers - so much so, that BOA's 14 existing U.S.
mortgage centers can't keep up with demand, Landers
said. |
Consider how much your company can save, and how much
more effective it can become. If other larger
institutions are succeeding with outsourced processing,
wouldn’t you want to consider it as a practical solution
to stay ahead? |
