Should a Broker Use Contract Processing in Their Business | The Mortgage ProcessorsSep 14, 2021
If you are a mortgage broker, contract processing can be an essential part of your business. In this blog post, we will discuss the benefits of using contract processing and how it can make life easier for you as a mortgage broker!
1. What is contract processing?
As part of being a mortgage broker, you need to collect financial documentation from clients. This usually includes proof of income, proof of deposit, etc. When you receive these documents from the client, they are not formatted to be used for processing a mortgage loan. Instead, you will need to have them re-key this information into your system so that it can pass underwriting standards and then go through approval processes at different institutions. This is a rather lengthy process and can be very tedious and time-consuming, but essential to the success of the loan.
2. Why do brokers use contract processing?
Mortgage brokers would use contract processors to offset the number of tasks they have to complete when dealing with their clients. For example, if a client is applying for a mortgage loan that requires proof of deposit in the amount of $2000 per month over the past two years, then you would have to go through each line item on your contract and look up what dates this information applies to. This can be something that an experienced contract processor can easily handle and take off your plate.
3. How do brokers use contract processing to increase revenue and reduce risk?
Since the time-consuming process of handling, sorting, and verifying all financial information is handled by contract processors, mortgage brokers are able to increase their revenue by spending more time on sales and marketing. There is also less risk involved when you have an additional team member or a whole team who can handle these important tasks in your business when you are looking to grow your business.
4. The benefits of using contract processing in your business
The benefits of using contract processing are many and would have different effects on an individuals business based on your needs, but the same benefits apply to every mortgage broker whether you have a 1 loan or a 100 loan pipeline: contract processing frees you up to do more of what you are good at, more of what will bring in more loans and grow your business, no matter how large or small your aspirations are.
Contract processors are available 24/hrs a day, allowing brokers to focus on high-impact activities like marketing and closing deals. Ultimately, only you can decide what is best for your business, but the great thing about having a team of knowledgeable contract processors doing the heavy lifting is that this team scales appropriately and there are no residual expenses every month; they are there when you need them, not there when you don't. They can help you find more time to relax and enjoy the meat of your job: meeting new clients and originating new loans. I hope this post has helped you decide and contact the Mortgage Processors for more information about our services!
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