6 ways to reduce cost of loan production by over 50%
What steps can lenders take to reduce the cost of producing a loan, while ensuring faster closures?
Today’s business environment of higher interest rates, declining loan applications, and higher cost of compliance is a challenge to all lenders. Over the last 18-24 months, with volumes declining and compliance costs going up, the average cost to produce a loan has swelled to $9,000. Most service providers are reporting a net loss on each loan that they originate.
What steps can lenders take to reduce the cost of producing a loan, while ensuring faster closures? We thought of 6 ideas that the lender can think of implementing, which will give them quick ROI. Also, with no upfront investments involved, the lender virtually has no risk associated with these initiatives.
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