Mortgage Loan Processing – a big wave of coming outsourcing
Dear NAMP Members,
Here is an article we found on the topic of BPO outsourcing mortgage loan processing to India... it's something to keep in mind as there will be many shifts in the outsource mortgage processing industry in the years to come! Let us know what you think... drop us a comment or two.
By: Sonia Chopra, Special CorrespondentJanuary 04, 2004
Loan Mortgage processing is a very lucrative business in America. It has employed an enormous number of people in last few years. The loan processing and underwriting work has started to migrate to India. This can provide an enormous level of outsourcing contracts for the Indian BPO companies.
Mortgage processing and underwriting is a repetitive and tedious process. It is an ideal candidate for getting outsourced from India. According to major Mortgage brokerage companies, the cost saving can be staggering.
As baby boomers in America start retiring, house prices stabilize at a higher level, saving rate goes up, more and more pressure is being extorted on mortgage, real estate and tile search companies in cost savings.A mortgage settlement form called RASPA is required by law at the closing of a mortgage and real estate transaction. Some experts predict that RASPA processing performed by attorneys can also be outsourced from India. Cost savings in that case can be real high. Attorneys in America make $250 per hour. Though everything is computerized, a similar settlement statement processing can save hundreds of dollars per transaction.
Mortgage processing, mortgage settlement statement creation, mortgage underwriting can all be performed very efficiently in India. The data used by mortgage underwriters are all-available over the Internet, Private Net or protected Intranet. Indian mortgage underwriters can deliver the work in the morning in America when things can be crafted and transactions closed.According to sources, major BPO companies in India are all geared up for providing outsourcing services in mortgage processing, mortgage underwriting and creation of final settlement statements. This can cause loss of jobs in America and UK. Some argue, these jobs will be eliminated through intelligent information technology processing and advanced software implementation any way. In the mean time till that phase is ready, Indian can be used to lower the cost. The cost savings can then be used to eliminate the jobs permanently even from India.
The concept is unique. Save cost through outsourcing and use that money to automate through use of software and other automation. Then eliminate outsourcing also.
Mortgage brokering, processing and underwriting need some human interaction but can be handled by a English speaking person from another country. That makes India the most suitable country for this kind of outsourcing.
Here is an article we found on the topic of BPO outsourcing mortgage loan processing to India... it's something to keep in mind as there will be many shifts in the outsource mortgage processing industry in the years to come! Let us know what you think... drop us a comment or two.
By: Sonia Chopra, Special CorrespondentJanuary 04, 2004
Loan Mortgage processing is a very lucrative business in America. It has employed an enormous number of people in last few years. The loan processing and underwriting work has started to migrate to India. This can provide an enormous level of outsourcing contracts for the Indian BPO companies.
Mortgage processing and underwriting is a repetitive and tedious process. It is an ideal candidate for getting outsourced from India. According to major Mortgage brokerage companies, the cost saving can be staggering.
As baby boomers in America start retiring, house prices stabilize at a higher level, saving rate goes up, more and more pressure is being extorted on mortgage, real estate and tile search companies in cost savings.A mortgage settlement form called RASPA is required by law at the closing of a mortgage and real estate transaction. Some experts predict that RASPA processing performed by attorneys can also be outsourced from India. Cost savings in that case can be real high. Attorneys in America make $250 per hour. Though everything is computerized, a similar settlement statement processing can save hundreds of dollars per transaction.
Mortgage processing, mortgage settlement statement creation, mortgage underwriting can all be performed very efficiently in India. The data used by mortgage underwriters are all-available over the Internet, Private Net or protected Intranet. Indian mortgage underwriters can deliver the work in the morning in America when things can be crafted and transactions closed.According to sources, major BPO companies in India are all geared up for providing outsourcing services in mortgage processing, mortgage underwriting and creation of final settlement statements. This can cause loss of jobs in America and UK. Some argue, these jobs will be eliminated through intelligent information technology processing and advanced software implementation any way. In the mean time till that phase is ready, Indian can be used to lower the cost. The cost savings can then be used to eliminate the jobs permanently even from India.
The concept is unique. Save cost through outsourcing and use that money to automate through use of software and other automation. Then eliminate outsourcing also.
Mortgage brokering, processing and underwriting need some human interaction but can be handled by a English speaking person from another country. That makes India the most suitable country for this kind of outsourcing.
posted by Editor in Chief at 8:24 AM
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