Banks repositioning mortgages for long-term success


Few could have predicted the full impact of the mortgage industry changes the last eight years. Even many of the leading lenders and servicers have struggled to make their businesses profitable and compliant. Initial assumptions were that the economics of the housing market would normalize, the regulatory impact would require some modifications, and the higher cost of the traditional mortgage operations would be manageable.

To the surprise of most, the complexity, risk, and escalating expense were far beyond what was anticipated. Who could have foreseen that the changes would result in some lenders leaving the mortgage business altogether and a large number of servicers still not able to find solid financial footing? In response to the new reality, banks that are positioning for long-term success are rethinking their approach to the mortgage business in a more creative fashion. 

Instead of maintaining stand-alone business units with all the inherent challenges, many banks are redirecting their strategies toward offering mortgages as a product. They do this by engaging strategic and expert operational partners to reduce the complexity, risks, and costs. Crucial to their success is finding a partner who not only provides support services throughout the entire loan life cycle, but also delivers strong efficiencies and compliance expertise.
Today’s lenders and servicers are not only dealing with managing financial, reputational and regulatory risk, they must now differentiate themselves on mastering forms, TRID and HMDA compliance, automation of forms generation, quality control and data management. The level of investment required and the need to be “perfect” every time is a daunting challenge.

So what are the options?

Some financial institutions have opted to pull back their mortgage business entirely; some have accepted smaller margins with the hiring of additional staff and an increase in infrastructure expense to keep their operations running compliantly; while others have moved to outsourcing either all or part of their mortgage business due to the significantly increasing investments in technology and infrastructure that are required. Ultimately, one thing has not changed: institutions are looking for solutions that mitigate risk and improve efficiency.

LenderLive has uniquely positioned itself to meet this challenge. 

As an established, premier provider of mortgage fulfillment, title and settlement services and document services, LenderLive partners with financial companies. The company helps clients operationalize complex processes that transform their businesses by reducing cost, enhancing performance, and mitigating compliance risk throughout the loan cycle. LenderLive has made strategic investments in technology, process improvement, compliance expertise and highly qualified talent so lenders and servicers can benefit from its scale and best practices.

The company offers private-label fulfillment to handle all aspects of loan processing, underwriting and closing, as well as secondary market execution. Integrated document services and title and settlement services provide seamless origination capabilities. This enables clients to turn their fixed origination costs into variable costs, without maintaining an extensive mortgage infrastructure.

By making mortgage production more efficient, LenderLive’s clients are able to maintain their relationships, focus on customer acquisition and feel confident that the company is originating to the highest standards. LenderLive helps them stay abreast of all of the regulatory changes like TRID and of all the state and local rules that can apply to a mortgage.

Mortgage documents are highly-scrutinized and frequently audited so lenders and servicers need a specialized partner with current, persistently monitored compliance embedded throughout the document and borrower communication processes. Doing it alone invites errors, high costs, reputational risk, and possible legal and regulatory penalties. LenderLive is a pivotal partner in helping clients master origination, servicing and default document generation and management in a workflow-driven mostly paperless environment.

LenderLive has mastered forms compliance through the automation of forms generation, quality control and data management, and they are experts at efficiently solving the complex challenges of all forms and letters within the mortgage cycle, as well as providing sophisticated data and document management and analytics. 

In summary, LenderLive provides mortgage mission-critical solutions to the largest and most influential lenders and servicers in the country. By partnering with their clients, financial institutions can confidently redirect their strategy to offer mortgages as a product, instead of a full-cost, stand-alone business unit. They attain cost savings, improved decision-making and minimized regulatory risk.   

LenderLive is very proud that their clients rely on them daily for not only thousands of transactions but also for high-quality experiences for their valued customers.

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