Brokers- Mortgage processing?

Question

I am an underwriter and a few friends which are underwriters and processors want to start a contract processing company. I'd like to hear any opinions or experiences people have had using contract processors working on contingency. Have they been good experiences? How much do you or would you spend to outsource processing?

Chris Mason · Answer

Tagging @Shaun Weekes, he will have very relevant input.

Not going to discuss comp publicly.

I will say that it was hard to let go of my own processing once I was at a point where it was no longer viable to do it all myself. But that's probably your best target market -- younger up-and-coming LOs who are trying to juggle a 70-80 hour work week with family. People established (ie, me at this point) already have relationships and likely wouldn't even return the call of a random solicitation. If/when my current processor is at capacity, I've already got someone (Shaun) that I'll be calling.

As to where to find those up-and-coming LOs that are working themselves ragged at 70-80 hours a week? Unconventional suggestion, but I'd suggest wholesale lender AEs. You probably already have those relationships. "Hey AE Sally, who processes their own files and is absolutely killing it right now? Broker Billy Bob? Great, what's his phone number." And then you call Billy and offer something he doesn't have: a reasonable work/life balance. Billy really does need you, since he's 6-36 months away from either burning out entirely, or using the services of someone like you... there is no 3rd possibility. As underwriters/processors, you currently aren't in sales. Well, now you are. It doesn't matter how great you are at your job, if you can't sell the service and have no clients, boom you go out of business. And it's all relationships, there is a 0% chance I'll send a file to a rando promising the world just because they are $100 cheaper. Other direction, actually, I'd rather over-pay (& I do in fact overpay, relative to market) and know that I'm getting a stellar high level of service, communication, speed, smoothness, etc.

Shaun Weekes · Answer

You really hit all the points that I would have talked about.

Arian Rosario · Answer

@Chris Mason I appreciate you taking the time to share. When you have outsourced, have there been any obstacles you cannot overcome and just have to deal with? Maybe along the lines of communication, or a extra steps in your process?