We saw record-breaking mortgage rates during 2020 dip as low as 2.65% on 30-year fixed rate loans and ignited an origination boom that had lenders scrambling to manage the high demand. During this surge, many lenders experienced challenges as they tried to deliver an ideal customer experience while closing loans at the speed of light.
The refi boom is slowing down and the experts predict the purchase market will continue to be fast and furious as we move into the next year. The MBA's 2022 origination forecast predicts another record-breaking year, with purchase origination reaching $1.73 trillion. Although more complicated, purchase loans give lenders the opportunity to provide a "high touch" level of service to their borrowers that could result in customers for life. Outsourcing the mortgage origination cycle can streamline lenders' processes without sacrificing the borrowers' experience.
The real estate market hasn't experienced its typical seasonality over the last 24 months. "No matter what the market is doing, we have an opportunity to help lenders visualize how the purchase experience will look for their customers," said Elizabeth Baumeister, Head of Originations at Computershare Loan Services (CLS). "By working with a skillful partner, lenders can create a better customer experience that encourages borrower loyalty."
Computershare Loan Services, a global mortgage services provider, delivers complete end-to-end fulfillment services that help lenders manage overhead with highly trained processors, underwriters and closers. Whether lenders want to lower their costs or improve their performance, the CLS team has the expertise and technology to strengthen a company's operations no matter how the market evolves.
Outsourcing offers many benefits. A 2020 study revealed the top reason businesses outsource is cost reduction (70%) and close behind is greater flexibility (40%), but lenders are often reluctant to trust their customer experience and processes to a staff they didn't hire or train. Some are concerned about technology integration and security breaches, while others wonder if outsourcing might negatively impact their company's culture. But with the right partner, lenders can confidently share part, or all, of their origination workload to grow their business.
The right partnership starts with technology that is designed to play well with others.
"Our outsourcing solution integrates onto a client's system, or we can bring a client onto our system," Baumeister said. "From a technology perspective, we have the ability to connect to just about any situation, which speaks to our global security framework. The solutions we develop are client-based - not just a one-size-fits-all solution."
When it comes to data security, outsourcing can actually help mitigate risk. One of Computershare Loan Services' core competencies is managing sensitive data. All employees receive information security training. They understand sensitive client information can only be disclosed or modified with the proper authorization and is only available when required by relevant business processes – and, of course, only when applicable regulatory legislative client requirements are met.
"CLS has the ability to provide a different approach for every client depending on their goals and overall culture," Baumeister said. "Every organization has worked so hard to build its identity, and some clients worry that outsourcing will present too much risk against that identity and brand. We work with our clients to ensure we don't compromise their values. We recognize our role as an outsource provider is to honor our partner's culture by listening to our clients and offering solutions unique to their needs."
Regardless of the market, lenders can benefit from outsourcing. Maybe a lender is lacking certain expertise but doesn't want to hire new employees. Or maybe they want access to new or upgraded technology, but don't have the budget. The housing market is cyclical. As the refinance boom comes to an end, and the purchase market fluctuates, outsourcing gives lenders the additional resources they need to stay competitive.
"Computershare Loan Services offers a true business solution that augments a client's existing business process component, whatever that might be," Baumeister added. "We listen and make small adjustments so each of our client's priorities, culture, goals and objectives are met."
Partner with Computershare Loan Services to take your mortgage fulfillment business to the next level.