GrowQ Private Ltd.

07/04/2022

04/11/2022

How Lenders Can Use Compliance Best Practices to Protect their Profits
Read the full blog -
https://bit.ly/3rEfD43

The cost of compliances in mortgage origination has soared to the roof. Mortgage lenders will agree that a big chunk of their operational costs comprises quality control and compliance.

03/31/2022

Industry experts believe that a drop in interest rates may likely boost the mortgage demand. However, lenders are still worried about their shrinking margins. According to the Mortgage Bankers Performance report, 24% of the loan applications were lost due to fallouts in the First Quarter of 2021. The report also states that the loan production expenses comprising employee emoluments, commissions, rent, equipment, and other expenses increased from $7938/loan in the last quarter of 2020 to $7964/loan in the first quarter of 2021.
Thus, 2 things are brought to light in the report:
Increase in fallout rates
Increase in cost of loan production expenses
Unfortunately, both factors contribute to shrinking lenders’ margins. So, even if the volume firms up due to lower interest rates, the overall picture remains bleak for the lenders.
Unless lenders strategically work towards lowering the loan fallout rates, they will be burdened with high costs per loan. It also diminishes the lender’s competitiveness in the market.
Blame it on the interest rates and the borrowers
When borrowers fallout before closing the loan, lenders blame it on interest rate changes and the borrower’s inability to sell the property. While these 2 are contributing factors, they are not solely responsible for the borrower’s fallout.
Lenders spend money and resources to get warm leads. So, every warm lead lost in transit not only results in lost business but also a loss for the lender. Instead of trying to find new leads and marketing to them, try to figure out at what stage you are losing the borrowers.
Customer experience matters the most
According to customer research reports, customer experience can improve mortgage origination. Most customers opine that customer experience is rated at par with the best rates. So, lenders need to find out if they are losing customers due to a lack of customer services. This could be a big opportunity for lenders to plug the loan fallouts, without sacrificing their margins. Your inability to offer a delightful customer experience to your borrowers can be resolved by:
Training your employees for a better customer experience
Outsource your loan origination process to a reliable mortgage service provider
The outsourcing option proves to be economical as they have the experience, expertise, and bandwidth to help lenders with the loan origination process. With services such as verifying loan documents, preparing disclosure packages, loan estimate calculations, sorting functions, and more, your turnaround time is drastically reduced, offering a hassle-free experience to the borrowers.
Getting things right the first time
One of the most irritating experiences for borrowers is multiple iterations from the lenders. Borrowers find eleventh-hour surprises frustrating and when they are faced with multiple document requests, unnecessary information requests, it nudges them to move to other lenders.
To resolve this, it is imperative for lenders to:
Simplify the loan application and documentation process
Thorough checking of the documents so that missing documents can be called just once, avoiding multiple iterations
Serve borrowers with speed and transparency
Controlling fallout rates can dramatically improve your margins and reduce cost per loan. The mortgage arena would be facing fierce competition in the days ahead.
The GrowQ Advantage
An experienced outsourced mortgage support partner can help you at every stage of the loan life cycle for improved customer experience, efficiency, and cost-effectiveness. With our services such as loan origination support, pre-underwriting, mortgage support, closing support, and more, lenders can improve customer retention rates, reduce their cost per loan and prevent margin compression, despite volatility in the market.
To know more about our services and how we can help, call us today!

Read the full blog - https://www.linkedin.com/pulse/how-outsourced-mortgage-services-can-help-lenders-reduce-fallout-/

03/31/2022

High underwriting costs taking a toll on your profits? The sluggish mortgage market is keeping lenders on tenterhooks as low volume and high underwriting costs are affecting their profitability. The only way to stay profitable is to deploy the ‘Pay as you go, model. GrowQ offers flexible packages to allow lenders to scale up or down easily. Contact us now at [email protected] to know how we can help you stay profitable!

03/01/2022

Learn More About How Outsourcing Mortgage processing services brings relief to lenders....https://bit.ly/3sxtjyx

As the volumes in the mortgage business take a backseat, lenders are facing stiff competition from their peers. Again, compliance with various regulations and demands from the customers for quick closing of loans is putting lenders under tremendous pressure. Lenders can stay ahead of the competition by:
• Offering most competitive rates to borrowers
• Reduce turnaround times
While it may seem that reducing turnaround times can be achieved by hiring more employees, it would only add to your fixed costs. Also, in slack times like these, it doesn’t make much sense to employ more hands. Again, to offer the most competitive rates to the borrowers without compromising on your profitability would be difficult. That’s where outsourcing mortgage processing services come into play. They offer tailored services at a flexible pricing model to suit your needs. A reliable outsourced mortgage processing partner is an asset for the lender to achieve better cost efficiencies and faster turnaround times.

Listed are some of the tasks that your outsourced mortgage service provider will handle for you:
Document Verification and Validation
To ensure the borrowers have filled in their loan applications completely, all the subsequent documents are duly attached, and there is compliance with the regulations, your outsourced mortgage processing partner will check the following documents:
• Pay stubs
• Form 1003
• Form 1099
• Form 1008
• Past history of Renting
• Gift letters: Stocks, bonds
• Tax Returns
• Past 2 years W-2 forms
• Bank Statements
• Profit & Loss Statement
• Work visa/green card

Your outsourced mortgage processing partner keeps a keen eye for details. They have a ready, detailed checklist for the documents that need to be submitted. Each loan application is duly checked to ensure that the applications are filled in properly, there is no missing information or documents. Also, the documents are validated with appropriate sources. A list of missing documents and missing information is sent to the lender under the ‘still needs’ head. Applications that raise suspicion are flagged. Most importantly, the outsourced partner will have a skilled team to accurately and quickly verify and validate loan documents for a faster closing.
Reviewing 3rd party documents
In addition to the borrower’s documents, your outsourced mortgage processing partner will ease away your burden by reviewing complex 3rd party documents and help expedite the loan closing.
They will review the following 3rd party documents:
• Title Report
• Appraisal Report
• Form 4506-T
• Homeowners Insurance
• Insurance asset copies
• Divorce Order
• Child support documents
After reviewing, any invalid or incompatible data is flagged to ensure consistency in the documentary evidence. Thus, when your loan files are verified by the underwriter, they will need less time for approval. As such, you can achieve faster turnaround times.

Data Entry for Mortgage Processes
Your outsourced mortgage partner can also help you with the data entry required at various mortgage processing stages. For example, entry of mortgage documents, Quitclaim deed, auction listings, deed of trust, disclosure policy, and more.

There is no doubt that an outsourced mortgage processing partner can be a great relief for lenders. When the volumes are low, they can bring in cost efficiencies, and when the markets are high, they can help you scale your business. But the key is to find a reliable partner that can offer economically viable and flexible models while ensuring accuracy and faster turnaround times. That’s where GrowQ comes in…

At GrowQ, we deploy structured and systematic process methodology. Our experienced team and result oriented approach mean more profitability and hasslefree experience for our clients.

02/25/2022

As a lender, you know the simplest way to boost profitability is to improve the per-unit economics of the loans you close, and the outsourced fulfillment model fits perfectly within that mindset.

Outsourcing helps you stop functioning at the mercy of fluctuating costs in high and low periods. We at GrowQ can provide you flexible resources which can be scaled up/down as per the market swing that too at the unbeatable prices in the industry.

Outsourcing mortgage services to GrowQ not only helps you keep your operating costs low in a down market, but will also allow you to absorb more volume in a rising market. Let’s Close Some Loans Together!!! You can reach us at (954) 688-4100

02/21/2022

As the refi boom declines – taking the intense production volume of 2020 and early 2021 with it – and we move to a more purchase-heavy market, lenders are seeing a decline in profit margins and an increase in origination expenses.

For lenders concerned with margin compression and decreasing profitability, trimming operational costs is the key to remaining profitable.

GrowQ helps lenders save 70% on operational costs in mortgage processing. GrowQ’s pricing is overwhelmingly low on a per FTE basis enabling lenders to save Flat 70%.

By partnering with GrowQ you get

-Access to Professionals with over 10+ years of experience in mortgage processing
-Variable cost model where the teams can be scaled according to the volume swing
-Reduced turnaround time (TAT) to meet shorter industry processing deadlines
-Improved compliance to adapt to changing regulations
-Improved borrower experience

For more information on how we can make a difference in your mortgage operations call (954) 688-4100. We will be glad to support you with your processing needs.

02/09/2022

How Lenders Can Deal With Margin Compression Effectively in Slack Market and Beyond

The year 2020 and the beginning of 2021 witnessed refinance boom with skyrocketing production volumes. However, the boom fizzled out after 2021 Q1, resulting in a purchase-heavy market. Lenders are experiencing shrinking margins, even as the loan origination expenses continue to mount. To put it in perspective, let us check the figures shared by Mortgage Bankers Association. In Q1 2021, independent mortgage banks and chartered bank subsidiaries posted $3361 profit per loan, loan production expenses at $7964, and personnel expense at $5523 per loan. However, the volumes dried up in Q2 2021. Despite shrinking volumes, both loan production and personnel costs increased to $8668 and $5911 respectively, resulting in margin compression. The net profit per loan was just $2023.
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As the margins shrink, lenders need to find a sustainable business model that improves operational efficiencies, reduces expenses, and improves profitability. The key for lenders is to boost operational efficiencies and reduce personnel costs.
Here’s how a trusted outsourced mortgage partner can help lenders:
Improving operational efficiencies
Improving operational efficiencies without capital outlay in infrastructure can be a bit challenging for the lenders. However, to lower the cost per loan, it is vital to improving operational efficiencies. One of the best and economically viable ways to improve operational efficiencies is to team up with a reputed partner that can support the lenders at every step of loan processing. From checking for missing information and documents to validating the documents, flagging frauds, and more, your outsourced partner can take care of the routine work. As a result, your in-house team will be spared from chasing the borrowers and can focus on core functions. It will help reduce the turnaround times and result in faster closing and ring down the operational cost per loan.
Reducing Personnel Costs per loan and Total loan production costs
Apart from improving operational efficiencies, lenders need to reduce operational costs. A bone of contention here is the fixed costs incurred by the lenders. If we check the figures given by the Mortgage Bankers Association, the total costs per loan and the personnel cost per loan have increased. It is because fixed costs such as salaries to employees form a large chunk of the total cost. The only way to reduce operational costs is to do away with fixed costs as much as possible. Teaming up with an outsourced partner with flexible engagement models can help you cut your total cost and improve profit per loan. The best-outsourced partners align their engagement models as per your needs, on an hourly basis, task-based or dedicated services. Thus, when the business volumes are slack, you do not pay salaries to idle personnel.
Faster processing of Clear loans
Often loan closing is delayed because of title defects, missing documents, inaccuracies in the documents, and more. Your outsourced mortgage services partner can help you at every step, whether it is preparing closing disclosures, flagging ‘still needs’ documents from the borrowers, checking for inaccuracies in the documents, calculating and reviewing loan amounts, helping with pre-underwriting tasks, and more. This not only helps in the faster processing of clear loans and reduced turnaround times, but it also helps save on resources and operational costs.
As lenders struggle with margin compression, it is high time they join hands with the right partner to improve profitability and reduce costs. GrowQ has the experience, expertise, and tools to support lenders. With GrowQ, lenders can reduce their personnel costs as well as operational costs, while achieving faster turnaround times. Whether you want to improve profitability during the slack market or want to scale up business when the market turns around, GrowQ can help!

https://www.linkedin.com/pulse/how-lenders-can-deal-margin-compression-effectively-slack-market-/?trackingId=dRS0KQbftmzQZVkhidfdWg%3D%3D

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02/04/2022

Roadblocks in Mortgage Processing and Ways to Resolve

Stiff competition, rising operational costs, and increasing customer expectations are putting lenders in a tight spot. Lenders tend to face several challenges in mortgage processing. However, these roadblocks can be overcome with careful planning. Here’s an overview of the impediments that lenders face and ways to resolve those challenges:
Volatile business
The mortgage processing business is volatile. It has its cycles of the busy and lean period. As such, paying idle staff in the slack times does not qualify as a good business model.
Instead, a sustainable alternative would be to pay only for the services used.
Underwriting challenges
When filling up a loan application, borrowers often miss out on important things, such as incomplete details, missing documents, and more. Such incomplete and missing information leads to rejections by the underwriter. This leads to wastage of resources, increases operational costs, and a lower loan closing rate.
To improve your loan closing rate and keep operational costs in check, you need a partner who can verify all the loan applications, check for missing documents and details, flag risky loan profiles, and ensure that the underwriter assesses only quality files. It will not only improve operational efficiencies but also result in faster loan approvals and happy borrowers.
Reduce operational costs
One of the biggest challenges leaders face is to keep operational costs in check. This is easier said than done as lenders have to keep up with rising employee costs, which includes costs incurred for recruiting, training, and retaining the staff.
An alternate, flexible business model you pay only for the services used, without having to worry about the recruitment and training would keep your operational costs under check.
Compliance
To comply with various regulations, your staff must keep up to date with the changes. Any regulatory change means your staff will spend a lot of time making those changes in the software, printed documents, seminars, and more. That means every change is costing you time and money.
An outsourced mortgage processing service can be the best solution to resolve this issue. They have the bandwidth and the expertise to quickly amend the software and make necessary changes.
Delightful borrower experience and quick turnaround time
Today, we are all obsessed with the ‘2-minute noodle’. Borrowers want their loans to be approved quickly, with minimal visits to the lender’s office. The lender needs to be super accurate and have the latest technology and systems for this. Often, in an attempt to deliver quick results, accuracy is compromised, leading to costly errors and faulty loans.
Quicker turnaround time with flawless accuracy can be achieved by partnering with an outsourced mortgage processing partner who has embraced the latest technology and has in-depth experience in mortgage support services.

The best recourse to overcome mortgage processing challenges
Mortgage processing is complex and detail-oriented. It requires an eye for detail, supreme accuracy, and in-depth knowledge of the procedure. GrowQ brings vast experience and expertise in mortgage processing services. From loan origination, closing support, post-closing, mortgage title support, and more, we handle every function to make it easy for the lenders.
Lenders can reduce their operational costs by up to 50%, scale their business without investing in infrastructure and improve their turnaround times with our error-free, reliable mortgage processing services.

Stiff competition, rising operational costs, and increasing customer expectations are putting lenders in a tight spot. Lenders tend to face several challenges in mortgage processing.

01/17/2022

Reduce costs on loan production to Improve margins

Lenders are facing a Catch 22 situation due to volatility in volumes and stiff competition. Competition is pushing lenders to offer loans at competitive rates to attract customers while shrinking volumes are putting pressure on the lender’s bottom line. The only way to improve profitability amid tight conditions is to reduce the cost of loan production and improve operational efficiencies.
Operational efficiencies can be improved in 2 ways:
1. Invest in technology
2. Partner with reliable mortgage support services
However, though investing in technology will improve efficiency, it would do less to reduce operational costs. First, investing in technology would result in capital outlay at the outset. Secondly, you will need to hire and train staff to run the software. It would add to your costs. Thus, investing in technology may not help reduce the cost of loan production. Moreover, investing in technology cannot be done overnight. It is a long process that may take at least a year or more to implement and streamline. Thus, lenders may not find it so effective.
So, what is the most efficient and economically viable way to reduce the cost of loan production and improve margins?
Partner with reliable mortgage support services:
If you can find a reliable partner to support you through the loan production process, you will be able to:
• Save on cost on loan production
• Improve operational efficiencies greatly
• Reduce loan processing time by 30%
• Faster loan closing
• Enjoy measurable and predictable ROI
• Quality loans
• Prevent frauds
• Get 99.8% accurate results
How do reliable mortgage support services help in reducing costs on loan production and improve your margins?
A reliable loan production service provider will handle all the tasks on behalf of the lender such as:
• Collating the loan documents
• Verifying borrower’s eligibility for the loan
• Updating data on the loan origination system

Your loan production service partner will verify the following:
• If the loan application form is filled in completely
• Flag any missing information
• Cross check details such as addresses, current employment details, employment history, credit score, and more.
• Report missing documents
• Red flag suspicious loan applications

With professional loan production outsourced services, lenders can work efficiently. They can save time in running after borrowers to collect documents and missing information. This results in faster closing of loans.
Your outsourced loan production partner would use technology to handle repetitive manual tasks. It eliminates the chances of errors and improves efficiency. Also, they would send you timely reports in a secure and intuitive environment. This would improve operational efficiency and transparency.

A thorough analysis of applicant circumstances and property details is conducted by the outsourced partner. As a result, lenders will get a detailed pre-title report reflecting the findings. It helps lenders focus on loan applications with a clear title, suggest remedial action to the borrower, where needed. With defects being identified before it the loan files are sent to the underwriter for approval, it results in an efficient process, where the lender's resources are saved. Lenders can optimize their operational costs, and stop spending time on loan files with a lesser probability to close.

At GrowQ, we help lenders reduce turnaround times from application to closing by 30%, fasten the pace of title insurance and ensure improved loan quality for a faster closing. A higher number of quality loan closing results in improved profitability for the lender and a higher borrower retention rate. Our transparent reporting systems enable lenders to measure ROI from day 1.
With GrowQ, lenders can rest assured of reducing loan production cost, improving margins, and closing loans faster with improved efficiency and accuracy.

01/07/2022

GrowQ is a full-service mortgage solutions company that specializes in mortgage origination, servicing and title. We implement strategic tools and process transformation to address the operational challenges facing the mortgage industry. For more information, visit us online at www.growq.net
or you can write to us at [email protected]

12/26/2021

Enjoy Your Holidays; We've Got You Covered!

Outsourcing your mortgage processing support tasks this time of the year will give you peace of mind. It will give you the much-needed time that you wanted to spend with your family.

Our mission is to help Lenders build better, more efficient, and cost-effective operations through industry-leading mortgage processing support services

Reach out to us and we will be glad to assist you. Write to us at [email protected]. Happy Holidays!