India: loan processing outsourcing

Loan Processing is perhaps the most tedious and crucial part of a mortgage loan application. Most loans are rejected at this stage for improper handling. With Processing Outsourcing one can decrease processing costs by up to 50%, Reduce processing complexity, Eliminate bottlenecks in post closing and servicing, improve customer service. Besides the budget associated with supporting an in-house mortgage processing department can be expensive. Recruiting and retaining qualified in-house mortgage loan processors can be frustrating, time-consuming and costly.

Area of Service :

• Loan Origination / Pre-qualification Support• Mortgage Loan Processing / Underwriting Back-Office• Due Diligence Audits • Document and Pipeline Management• Work flow Management/Business Process Re-engineering (Consultancy)• Existing/New Customer Support• Mortgage Servicing Back OfficeMortgage Acquisition and Origination Methods:

1. Lead generation through telemarketing and internet
2. Customer Acquisition analytics
3. 1003 Processing
4. Ordering Vendor services like Credit, Title and Deed
5. Supporting Doc verification
6. Property verification / valuation
7. Employment Verification / credit checks
8. Good Faith Estimates
9. Annual Percentage Ratio
10. Rate Adjustments
11. Payment Schedule
12. Security
13. Pre-payment
14. Rate Lock
15. Loan Submission
16. Funding

Currently the US market for mortgage processing is between $6 to 7.4 billion while the existing Indian corrolary is a measly $150 million. Express Computer Reports: Analysts expect this trend to accelerate, as labour costs constitute a significant portion of the overall costs that mortgage banks incur in servicing clients. Offshore outsourcing is expected to generate cost savings in the range of 30-50 percent.Mortgage banks are looking for ITO and BPO as long term strategic tools. India is fast becoming a Mortgage manufacturing hub, with its strong competitive advantage over other economies like China, Canada, Philipines etc.The loan processing is another area which can fetch in upto 50% of cost savings if offshored to destinations like India.

Works to India -