Biggest Challenges in Mortgage Loan Processing Services and How to Solve Them!

Biggest Challenges in Mortgage Loan Processing Services and How to Solve them

Mortgage loan processing in itself involves many challenging sequential procedures that span across pre-processing the loan to post-closure procedures. Mortgage loan processing services start much before the loan is actually sanctioned and continues even after it is closed. Since mortgage loans involve complicated documentations and high-valued transactions, every transaction is carefully verified and validated by experienced mortgage experts who take considerable time to complete. This can cost the financial institution its business because customers tend to get restless waiting for long periods while the validations, verifications and pre-processing parts are being done. But these can be well-handled by a competent and experienced outsourcing partner. Here are some major challenges faced by the mortgage firms and how the outsourcing firm handles them:

Turnaround Time

In any business, the turnaround time makes a huge impact on its success. Since the mortgage loan processing involves meticulous sequential processes, it is typically time-consuming, especially if yours is a small or medium firm or if you are operating from different locations. An outsourcing partner can help you with the right experienced resources and software tools in place for a faster process completion.

Title Checking

Title checking is one of the most critical procedures of Mortgage process outsourcing. The outsourcing partner will have the right resources to conduct the title checking meticulously and ensure a clear title before the property is even considered for mortgage.


Underwriting is done after the mortgage application is considered for loan. This documentation process is very tedious and requires experienced underwriters to ensure complete and accurate documentation of the mortgage loan and property being mortgaged. The outsourcing partners will engage experienced resources for underwriting. Since the rules change based on location, they will have offshore service providers who are well-versed in local rules and regulations regarding underwriting mortgage loans.


During the peak business seasons, even the best mortgage firm will find it extremely difficult to function normally completing each transaction in an optimal time. Outsourced Loan processing services are opted because of their scalability to provide additional resources during the peak season and to reduce them during the lean season. Since the outsourcing firm provides the resources, the overheads never fall on the customer or the parent company.

Federal Compliance

Every state and local government poses certain federal regulations on mortgage loan documentations and processing. Being high-valued transactions, these are bound to be complied with the required documentation has to be prepared and submitted in a specific format. The outsourcing partner will stay updated on the latest regulatory changes and suggest ways to fill the gap in document regulations.

Customer Service

Even though customer is the main requirement for every business, very few businesses have adopted customer service as their critical business process. Mortgage processing support helps your firm with ensuring proper customer service which helps in building the business stronger. They take care of Customer engagement, support and service matter to ensure faster TAT and retain happy customers. Since this is a rare service provided by very few mortgage firms, investing on the right outsourcing partner will help you gain a special place in among the mortgage customers in the vicinity.