Jan 05 2018

Outsourced Loan Underwriting Benefit for Small Mortgage Lenders

Outsourced loan underwriting is the avenue by which many companies pass on the business of underwriting loans to an external third party. The idea to outsource underwriting activities is indeed very sensible as not only does it shift the burden of a very important step in the loan processing procedure but it also gets a sensitive job done perfectly by experienced professionals.


With this system in use, outsourced loan underwriting gives hope to many up and coming mortgage processing companies that do not have enough capital to hire in-house underwriters. Considering that underwriting is a specialized talent that takes years to perfect, it’s understandable that a good underwriter demands a huge salary. For a small lender, it makes sense to outsource all their data-oriented work to an underwriter rather than hire staff for the same job.


To be in the housing industry, a small lender is forced to employ several good underwriters. If a small business also needs a few loan officers and loan processors, it may not be possible to add on the cost of one more underwriter. To get out of such heavy talent investments, small businesses are using outsourced loan underwriting services. This serves to be an excellent safety net, particularly during lean economic periods. If you too are the owner of a small mortgage company, you should consider outsourcing the services you offer. This will also help you work with any far-reaching changes in an unpredictable business climate.


It works like this: If you want to ensure that you have enough staff during both lean and boom times, you must see that all your mortgage loan processors have enough work to do, particularly in boom times. This is the best time for you to grow. Those that succeed are the ones that can close the maximum number of loans in the minimum number of days at the lowest cost. By using outsourced loan underwriting services, small lenders can achieve these goals as now they can underwrite as many loan applications as they receive in the minimum amount of time.


To get into a contractual arrangement with an outsourced loan underwriting company, you need to first look for the worthiest and most experienced company of underwriters. True, there are such companies situated even outside the USA, but it is well worth hiring providers within the United States like C.L. King & Associates.


If you decide on this, you can check if your prospective underwriter genuinely has brick and mortar offices in different parts of the country where you can enter and check them out, if you wish. The fact that your underwriters are in the same country as you will give you a particular kind of confidence that no outsourced mortgage underwriting service provider in any other country can.


When you hook up with an outsourced loan underwriting services company, it assures you that all services that it renders are in full compliance with the laws of the American housing industry. Besides this, it also assures you of privacy on the Internet. When you begin working together, ensure that you get full privacy on the Net – a good underwriting services provider will always put proper security into place.


C.L. King & Associates is a full-service investment bank and self-clearing broker-dealer founded in 1972. When combined with our strong capital base, we are an active securities underwriter. We co-manage bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferred

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