Aritas Mortgage Solutions

6 Advantages of Outsourcing Your Mortgage Processes


Aritas Mortgage Solutions

July 18, 2023


According to the Mortgage Bankers Association (MBA), roughly 3.5 million mortgages are likely to be made to homebuyers in 2023. The MBA expects an annual mortgage market of $2.5 trillion between 2022 and 2024—a 40% increase in value over the 2010–2019 period. However, the inability to scale operations at the right time is holding many lenders back. Consequently, they are failing to leverage the full potential of this surge in demand.

Fast and Efficient Mortgage Processing Is the Need of the Hour

Mortgage processing is a time-consuming, capital and labor-intensive process, with several repetitive workflows. Many banks and lenders who fail to update their legacy processes pay in the form of high costs and time-consuming procedures. According to a McKinsey report, many mortgage operating models have origination costs of $7,000–$9,000 per loan and a mortgage cycle of over 45 days, leading to poor customer satisfaction.

Several fintech lenders are leveraging the latest tools to take advantage of mortgage process outsourcing. It frees-up time and allows them to focus on improving customer experience. This has encouraged several major banks and non-bank lenders to invest in third-party tools .

Mortgage Process Outsourcing (MPO): Beyond Cost Savings

MPO is helping lenders undergo digital transformation. The early model of outsourcing mortgage processes was designed to utilize an affordable, skilled workforce to stay ahead of the cost curve. Over the years decision-making tasks like ensuring data security and consumer privacy have become a part of mortgage process outsourcing. New-age MPO partners help you stay ahead of competition by applying artificial intelligence (AI) and machine learning to optimize and streamline mortgage processing. Mortgage process outsourcing has evolved beyond process solutions—it now offers solutions to the lenders’ business problems.

Here are some advantages of outsourcing your mortgage processes:

#1. Scaling Flexibility

Many lenders miss out on demand waves due to their inability to scale operations. Scaling is an issue because mortgage processing requires a skilled workforce. By the time staff are hired and trained, the opportunity is often lost.

Competent MPO service providers have skilled staff trained in the latest regulatory requirements, with mid-level and senior-level managers handling the workload. What’s more, most providers have customizable service fees. You can scale during seasonal demand and lay low during off-seasons, optimizing infrastructure and staffing costs.

#2. Tailored Solutions to Suit Your Needs

It is a common myth that outsourcing is a luxury only large corporations can afford. By outsourcing operations to a trusted partner, you can access a team of experienced and trained staff who can tailor solutions according to your mortgage processing needs along with the latest tools required to scale operations. If you are unsure of the current metrics on workflow, timelines and component costs, your MPO partner can draw up a close estimate after an initial discussion. Whether you’re a banker looking to manage a sudden surge in loan requests or a title company that wants to reduce cost per file without hiring and training new staff, you can benefit from your outsourcing partner’s expertise and overcome operational challenges from day one.

#3. Leverage Latest Digital Infrastructure

According to an ICE Mortgage Technology Borrower and Lender survey, over 60% consumers want to complete their mortgage applications online.

Mortgage processing has several stages and documents. The latest digital tools make it easier to access documents securely and track a file’s status from any location. It also reduces turnaround times as there is no manual processing. However, building and maintaining your digital infrastructure requires huge investments and resources. An MPO service provider takes care of these details with technical expertise.

According to a McKinsey report, most successful digital-first lenders (referred to as ‘digital attackers’) have 25% lower costs and 30% shorter mortgage cycles compared to legacy institutions.

#4. Big Data can Optimize Products and Processes

Big data analytics convert data into actionable insights. Companies use these insights to discover trends, identify anomalies and risks, optimize products and processes and improve pricing models. New-age MPO providers have gone a step further by using AI to automate processes.

One of the key benefits of mortgage process outsourcing is the ability for providers to equip big and small organizations with the power of big data analytics, CoBots and Robotic Process Automation.

#5. Get a Competitive Edge with Better Customer Satisfaction

Mortgage process outsourcing service providers ensure optimized loan application processes by improving complaint resolution times and 24×7 call center support. MPO managers continuously improve processes to reduce turnaround times, which in turn adds value and boosts customer satisfaction.

Customer satisfaction gives you a competitive edge among first-time home buyers. According to a 2019 McKinsey survey, banks received 20–30% lower customer satisfaction scores compared to non-bankers. Exceptional customer experience was found to be the leading deciding factor for first-time homebuyers when choosing a lender, followed by the best rate.

#6. Improve Profit Margins

Mortgage companies operate on minimal margins as mortgage processing services are capital intensive. MPO providers absorb infrastructure, staffing and data security costs for a reasonable fee, undertaking complex, time-consuming tasks such as accounting, tax monitoring and loan documentation. This leaves you with time to focus on more strategic objectives such as expansion, new product development and managing compliance risks. The MPO provider will back your expansion plans by scaling operations and improving cost efficiency.


Federal rates are expected to rise in 2023 which implies that the mortgage industry could take a hit. Curb challenges that will arise as a result of inflation and high unemployment rates by ensuring your clients receive an unparalleled experience. We have over 15 years of experience in offering flexible, digital solutions for outsourcing mortgage processing. Get in touch today so we can empower you with the right solutions to drive results.

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