#loan document processing

As we all know, the secondary market is where the home loans and servicing portfolios are bought and sold between lenders, banks, and investors. Lenders sell a large percentage of newly originated loans into the secondary market, where they are packaged into MBS’s (Mortgage-backed securities) and sold to investors like pension funds, insurance companies, and hedge funds, etc.

Title agents play a very important role in the mortgage process, that of helping the lender validate the ownership in the property and issuing title insurance.

Amidst the Covid-19 outbreak, while new home purchases are taking a hit, refinance requirements are going through the roof. In the recent past, mortgage companies have been experiencing stiff competition from other mortgage companies. But a bigger challenge has been the rise of fintech companies that is significantly impacting mortgage lenders.

The need to improve the digital footprint and improve consumer experiences has always been felt in the BFSI sector. The current global pandemic gave it a major push. Financial institutions are increasingly reassessing their business models, core systems structure, and commitment to innovation while continuing to cater to their customers.

The effects of digitalization and changing business landscape have touched every area of life, and all eyes have been fixed on the mortgage industry of the US to see how it adapts to the changing conditions. US Mortgage Industry has been a large cooperative network. It is a major financial sector in the US.

For businesses like mortgage lending, which are very labor-intensive, Offshore Delivery Centers or ODCs are beneficial as they help to increase productivity while achieving cost-effectiveness.

The mortgage industry works in a paper-intensive environment. On average, there are more than 25 types of documents for the retail mortgage loan origination process, over 15 in correspondent lending, and over 10 in mortgage servicing rights.

We all have been talking about how the mortgage industry has evolved in the past few years. With the changes in the industry, technology and service providers have also brought in several changes to their business models.