Mortgage underwriting is the most critical part of the mortgage process. It’s what tells borrowers if they can buy a home or not. Without mortgage approval, buyers are left to pay cash or continue renting.

There’s a lot of pressure on the mortgage underwriter’s back, especially with today’s compliance regulations, making the underwriting position challenging. With mortgage underwriting support services, you can alleviate your staff’s stress and ensure compliance.

What are Mortgage Underwriting Support Services?
Mortgage underwriting support services are outsourced companies that handle the underwriting process for banks, lenders, and credit unions.

With ever-changing CFBP regulations, lenders often cannot handle the challenges of keeping up with the regulations, such as compliance costs, penalties for non-compliance, and staying current.

Mortgage underwriting support services focus solely on underwriting and can stay on top of the regulations while minimizing a lender’s costs.

Services Mortgage Underwriting Support Services Offer
So what can a mortgage underwriting support agency offer you? Here are just a few options.

● Check credit history – This is one of the first steps in the underwriting process. Hiccups in the credit history create a domino effect, requiring borrowers to provide more information or forcing loan officers to fit borrowers into a different program.

● Review documents – Mortgage underwriting services check all borrower-provided documents referring to their income, assets, and employment. They have automated and manual processes to ensure a borrower meets the program guidelines beyond a reasonable doubt.

● Evaluate collateral – The collateral is the most important part of the underwriting process as it’s what lenders have should a borrower default. Mortgage underwriting support services have streamlined systems to ensure the collateral is sufficient.

Reasons to Use Mortgage Underwriting Support Services
So why should you consider mortgage underwriting support services? Here are X ways they can help.

1. Unbeatable support for your underwriters
Why put unnecessary pressure on your underwriters and risk your bank’s back end? Having another set of eyes on your loan applications and checking the validity of all information ensures you’re only offering suitable loans.

2. Reduce turnaround time
Borrowers have many options when looking for a lender, especially if they have good credit or a large down payment. If you cannot turn files around quickly, borrowers may look elsewhere. Using underwriting support services, you can turn files around much faster, increasing your bottom line.

3. Stay on top of regulatory requirements
Regulatory requirements are vital to the success of your bank or credit union. One penalty for non-compliance could risk a lender’s business. The time and effort it takes to stay up-to-date on the ever-changing regulations can be time-consuming and expensive, but outsourcing the services to a company that solely focuses on this service can help.

Final Thoughts
Underwriting is the key to any loan, but the process can be time-consuming, risky, and expensive. Mortgage underwriting support services can help a bank or credit union underwrite more loans, ensure compliance, and reduce the stress on their staff.