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Although 2018 should be a pretty good purchase market, business is getting increasingly more difficult to come by. Home prices are up, rates are up and so is the competition. How do you do more loans without drastically increasing expenses? Correspondent Lending!
If you’re already purchasing loans through correspondent relationships, you have the basis to increase your production. You can expand your business into new markets by exploring new broker relationships already established in these markets. Why reinvent the wheel?
If you’re not doing wholesale or correspondent lending business, now may be the time to explore that option. Why continue to compete with brokers who are well established in their markets? Provide them the systems, service, pricing, and products to bring their business your way.
To do this effectively and efficiently, you need to have the right system to price, register, review, approve, as needed, and either close or quickly purchase their loans.
The easier you make it for the brokers, the more business they’ll do with you, assuming that you have good products with competitive pricing.
How do you do it? Technology!
Have a system that is developed strictly for correspondent lending.
Today, too many investors are using a piecemeal approach through a combination of multiple, disparate systems and services. They are using a mish-mosh of a retail loan origination system, with a separate and sometimes manual product and pricing engine. While getting some support from a seller registration portal with a minimal, manual due diligence review.
This increases expense and jeopardizes data integrity due to the many required modifications and manual workarounds. When time, accuracy, and data integrity are critical, you need a single system to handle all your needs. One that can provide:
- A unique database that identifies and categorizes your correspondents
- One stop, immediate, and complete loan registrations
- Online, real-time, loan pricing with creation and management of commitments for loan locking and hedging
- Classification, indexing, and data extraction of submitted loan documents for quick and accurate reviews
- Comprehensive, pre-purchase reviews for quick, closed loan file eligibility
- Direct Loan funding with an automated onboarding process
Such a system will provide improved efficiencies, address loan defects before purchases, and fund loans quicker. Why spend money chasing more loan originators with no guarantee of more business? Have the business come to you!
If you have such a system you are way ahead of the game. If not, you need to get one now, before your competition does.
The lenders that can best service the needs of the brokers are the ones that will garner the most business. Make that lender be you.
A small one-time investment in the proper technology will pay big, long-term dividends in increased business at decreased expenses. Why wait? There’s no time like the present!
If you’re considering correspondent lending and have been put off by the lack of a complete one-stop system to handle this business, Loanlogics can help. We have just what you need to become successful.
The game has changed. Play different.
