How lenders can increase efficiency amid tight profit margins – HousingWire

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As the refi boom wanes – taking with it the intense production volume of 2020 and early 2021 – and we shift to a more buy-driven market, lenders are seeing lower profit margins and higher spending disassembly.

Independent mortgage banks and chartered bank mortgage subsidiaries reported a net gain of $2,023 on each loan taken out in Q2 2021, down from the reported gain of $3,361 per loan in Q1, according to the Mortgage Bankers Association. 2021. Over the same period, total loan production expenses increased from $7,964 to $8,668, and personnel expenses averaged $5,911 per loan, down from $5,523 per loan.

With these margins tightening, lenders are looking for ways to improve operational efficiency and reduce origination costs.

Main operational challenges

WFG Enterprise Solutions aims to help lenders do just that. The company starts by helping lenders identify exactly what they need to work on to improve efficiency and reduce costs.

To do this, in June and July 2021, WFG Enterprise Solutions surveyed mortgage executives across the industry on their top operational challenges. Top challenges included lead times (56%), operational capacity, volume and staffing (34%), technology implementation and integration (34%), and communication ( 31%).

The right tools to help

WFG Enterprise Solutions leverages survey information to develop products and services that align with and help solve the challenges of its lending partners.

Among the technologies helping lenders streamline their operations amid tight margins are its consumer collaboration portal WFG MyHome and DecisionPoint, an instant securities decision engine.

WFG’s MyHome brings participants in real estate transactions together in a single, easy-to-use ecosystem. This portal improves communication and transparency, improving the customer experience.

WFG’s MyHome also eliminates duplicate touchpoints, provides real-time status updates, enables proactive communication, and makes it easy to collect, store, and share data and documents. It also eliminates redundant tasks and unnecessary inquiries, as well as collects and delivers crucial documentation and information in a secure, centralized repository.

By using WFG’s MyHome, lenders can work more efficiently, spending less time researching borrowers for documents or information. This, in turn, reduces lead times and time to close, which are top priorities for lenders.

Communication is also enhanced, as the system provides personalized communications via SMS, email, or dashboard notifications to alert attendees of important milestones. The portal also provides a convenient, secure and intuitive self-service ecosystem, improving operational transparency.

The DecisionPoint automated title decision tool aims to improve lender pipeline management, enabling them to use their time proactively and efficiently.

By analyzing the encumbrances of the property and the applicant’s circumstances, DecisionPoint is able to immediately project a reliable title clearance timeline and provide a detailed pre-title report summarizing its findings. These reports allow lenders to focus their time and energy on loans with a clear title, avoid spending time on loans that will not close, and, if desired, examine loans in more detail. which may require some form of remediation.

Because DecisionPoint identifies title defects in advance, lenders are able to assign these poorly rated transactions to the correct processors, allowing them to process “clear” loans faster and more efficiently. Lenders are thus able to work profitably, spending less time on transactions that are unlikely to close.

DecisionPoint reduces turnaround times from application to closing, accelerating the title insurance process to close loans faster. Additionally, it allows lenders to utilize their staff more efficiently and improve their conversion rate. More successfully completed loans also mean higher profits.

As operational costs rise and profit margins tighten, lenders need the right tools to work efficiently, communicate effectively, and reduce turnaround times. WFG Enterprise Solutions offers several solutions that meet these needs and works in partnership with lenders to help them achieve these and other business goals.

For more information about WFG Enterprise Solutions and how its technology helps lenders, visit wfgls.com or email [email protected]

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