FHA, which stands for the Federal Housing Administration, is a United States government agency which insures home loans for FHA approved lenders.

One of the best tips for buying a house is to fully understand all the financing options that are available to them.  As a buyer is trying to determine which type of mortgage is the best, they must weigh the PROs and CONs of each option. Continue reading...

A mortgage loan processor is the link between a borrower, loan officer and the  underwriter in the context of a residential mortgage. And he or she is arguably the most important member of the team.

The National Association of Mortgage Processors says, “The primary function of the Loan Processor is to ensure the timely and accurate packaging of all loans originated by loan officers.” So it’s mostly an administrative role. Continue reading...

In today’s ever-evolving, competitive market, mortgage lenders face a host of challenges like meeting borrower expectations, improving closing ratios, reducing the cost of origination, and most importantly keep growing. One of the best ways for lenders then is to tie up with reliable mortgage processing partners who can do the heavy lifting for them, and allow them to focus on the market expansion. Continue reading...

Outsourcing is a very common practice in the finance industry. Since the 1970s, banks and other businesses have been outsourcing several functions including clerical, record storage, accounting, data processing, security and plant maintenance. The mortgage industry too followed suit soon. What fuelled the growth of outsourcing is the fact that outsourcers could do the work at a fraction of the cost of what companies spent to maintain themselves. Continue reading...

The mortgage industry has been evolving since the past few years amidst a lot of regulations. In the US, today, a median borrower puts 5% down payment for their home purchase, as compared to 20% about a decade ago. This aspect, paired with price wars, new CFBP regulations, and other accompanying challenges, has resulted in many mortgage lenders looking positively towards outsourcing services as an option. Mortgage loan processing companies, who specialize in offering these outsourced services are able to cut down costs and improve productivity. Continue reading...

The mortgage processing industry is a complex ecosystem that has a highly regulated environment and the need for a delicate balance between modernization, cost, and risk. Processing larger mortgage volumes is an element that requires more efficient services on part of lenders and processors.

Processing Higher Mortgage Volumes

At a time when more millennials are pursuing homeownership than ever before, the volumes of mortgages are bound to go up. Over the past few years, it has been observed that as millennials age and grow in their careers, they are acquiring more purchasing power, are shopping for mortgages online, and entering the market well prepared. Continue reading...

2020 is just around the corner and it’s that time of the year when the mortgage rate predictions begin. Experts have pulled up their sleeves to forewarn about how the mortgage interest rates will do in the coming year. There is a lot of curiosity over whether the rates will continue to drop or skyrocket. Those looking to purchase a new home or refinance next year are all ears. Continue reading...

The mortgage processing industry is intensely regulated and one of the biggest challenges is to keep up with changing fed regulations. The industry demands extremely proficient and expert processing teams who can help lenders resolve and address the growing challenges in mortgage processing services. It is a good idea for lenders to outsource the mortgage process to a mortgage processing services partner who can provide the needed support for the business.

Here’s how mortgage processing services partners can help in addressing the challenges that arise: Continue reading...

Missed payments are not a matter of overt concern until the second missed payment period has passed – which means the borrower is 60 days late in making payments. When a borrower misses two consecutive loan payments, the account is considered in early-stage delinquency.

Mortgage servicers are responsible for handling delinquent loans. Mortgage servicers also handle the day-to-day processing of mortgage loans which includes communicating with borrowers and investors, processing payments and handling escrow accounts. So, if a borrower does not rectify the delinquency, mortgage servicers are responsible for choosing whether to pursue a foreclosure sale or to implement a loss mitigation option. Continue reading...

2020 has seen a strong start in the mortgage business for new home loans and refinances. In the first month itself, refinancing led the surge, thanks to a drop in mortgage rates. According to data from the Mortgage Bankers Association (MBA), applications for refinance jumped 43% and were 109% higher than a year ago. The refinance share of mortgage activity increased to 62.9% of total applications from 58.9% the previous week.

MBA economist Joel Kan noted that refinances increased for both conventional and government loans, as lower rates provided a larger incentive for borrowers to act. Trends like these are an indicator towards a possibility that mortgage rates may continue to stay low for most of 2020. This would help the home buying market as well as refinancing activity, which would mean that there are chances of loan applications going up as compared to the early part of 2019. Continue reading...