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Retail mortgage lenders are constantly looking for technology to find better ways to streamline their methods to take loan applications, gather loan information, approve and close loans. This helps minimize expenses so they can keep prices down to better compete in this highly competitive market.
But what about the companies that buy their loans? Known as Correspondent Lenders or Loan Aggregators, these entities should also have the technology to streamline loan acquisitions, expedite processing, underwriting, and the sale and delivery of their loans to their secondary market sources. Does it exist?
In many cases, Correspondent Lenders rely on some sort of modified retail LOS to register, track and deliver their loans. Such bastardized systems rely on additional support from external spreadsheets, product and pricing engines, and accounting software.
This creates the need to coordinate these different systems throughout the loan’s lifecycle, with additional manual support for file and document reviews which results in a system that is costly and highly inefficient.
Why use the same old legacy systems? Aggregators should engage systems and technology solutions geared to effectively handle their specific business transactions. These transactions are different than those of a retail lender. The right tools can make all the difference.
Correspondents looking to attract lenders and brokers must maximize control and flexibility in loan pricing, approvals, and purchases. The right technology can allow the customization of pricing and policy to get down to the loan level. Both parties know what is available, the exact price and under what conditions.
Why wait until a loan is received and reviewed to find out it doesn’t fit. Remove the guesswork for both parties on loan eligibility by making the determination at the time of registration.
You could also obtain more complete accurate loan information, including the pricing, at registration which will allow the Correspondent to make a better, quicker decision on the final sale and/or securitization of the loans purchased.
Technology that would address the needs of the Correspondent Lender/Aggregator can surely help to:
- Ensure data and document integrity
- Provide for loan file transparency
- Ensure compliance
- Assist in effective defect management
- Help build strong relationships
- Improve communications and profitability.
Retail lenders have learned that they need technology to stay competitive and survive. Correspondents, like retail lenders, will find that it’s no longer all about the price.
Like consumers, retail lenders will shop for the best package of products, price, turn times, and stability when it comes to the companies with which they’ll do business.
Whether retail lender or Loan Correspondent or both, you want to be that company; you need to be that company.
When it comes to the technology, LoanLogics can help. Find out more about loan correspondent solutions, and other services offered, at www.loanlogics.com.
