Today Blown Mortgage is doing another sponsored review for Nationwide Loan Processing, a contract, outsourced processing company for brokers and lenders who don’t want to keep loan processing departments in-house. I’m excited to write this review for Nationwide Loan Processing for two main reasons: 1. I’m a big believe in contract processing and 2. I’m pleased to see that Nationwide Loan Processing has very competitive rates when it comes to their services.
Since I am out of the business I have not been able to use Nationwide Loan Processing personally – but I have referred them to my friends and family to further explore their potential for their small brokerage shops.
Why I like contract loan processing
I’m a big fan of contract loan processing for two main reasons: 1. overhead 2. effort. Let’s face it, in these days of fluctuating pipelines and countless guideline changes that throw wrenches in to even the most mundane of closings having a processing department on a fixed payroll is a huge sunk cost and makes a large portion of your fees directly payable to overhead. If you’re a smaller broker you can’t afford to have a team of processors on payroll. But with contract processing like Nationwide Loan Processing you can have a team working for you that expands and shrinks as your needs change. And at the quoted prices on their web site you’d be hard pressed to bring in a processor for lower overall cost per file.
Second reason I like contract processing is the hustle and effort. Nationwide Loan Processing doesn’t get paid if the loan doesn’t close which means that they are going to fight for the loan just like you are. If it gets denied at one bank they are going to work with you to resubmit the file and find a home for the loan. This hustle helps get files done in a timely manner. Compare that to a tough file with a salaried processor. Do you think the tough files are the ones that get worked on? Absolutely not. Tough files go to the bottom. It’s human nature. So put hustle on your side with an outsourced processor.
You should be selling
If you’re an originator your money is made by selling, not filling out paperwork. Spend more time doing high-value work like prospecting and marketing and less time following up on appraisals, title supplements and other conditions. Look at everything Nationwide Loan Processing handles for you:
- Order appraisal and title
- Order payoff and subordination agreement (if necessary)
- Verify disclosures are accurate and complete
- Review credit report, bank statements, pay stubs & W-2’s
- Submit loan package to lender
- Clear lender conditions
- Contact hazard insurance company for new mortgagee clause
- Prepare fee sheet for review by broker, then submit to lender
- Coordinate closing schedule
- Follow up to confirm closing was successful
- Assemble a Post Closing loan package and deliver to broker
- Keep the broker informed throughout the loan process
Just think, all that time should be spent prospecting. You can instantly increase your efficiency and reduce your overhead by switching to an outsourced processing firm and you should definitely check out Nationwide Loan Processing.
Let us know your experience with the folks at Nationwide Loan Processing in the comments and thanks for your feedback. Regardless of who you choose to fulfill your processing needs you should seriously consider an outsourced option; particularly if you are a smaller firm with cash-flow and overhead concerns.
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