Utilizing ‘Pay As You Go’ Services. How it Helps You Scale Operations and Reduce Costs
by Alok Bansal
All of us in the mortgage industry have seen the swings in volumes over the last 18-24 months. No lender can staff up permanent resources for meeting this variable demand. Finding capable partners is the need of the hour.
Having access to a vendor, who can provide back-office mortgage services on variable ‘pay as you go’ pricing model will work very well. With these pricing models, you can be sure that you can scale up your team, based on increasing demand and at the same time, in times of decreased volumes, reduce the team to manage costs. That way, you keep a tab on costs and at the same time are able to grab the opportunities.
Visionet offers ‘pay as you go’ pricing on a variety of mortgage back-office services that complement its best in class technology. You can easily save up to 50% of your costs by leveraging a variable cost model.
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. When times are tough, you need to strategize your moves. The aim is to remain ahead in the race, without increasing your cost of acquisition. Also, since the loan volumes are down, lenders must keep “Faster Closure”, and “Profitability” as the focal point.
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. Go ahead and download our eBook ‘6 ways to reduce cost of loan production by over 50%’. We are sure you will enjoy it.
With no upfront investments involved, the lender virtually has no risk associated with these initiatives. Meet with us at MBA Annual at Booth #360 (Schedule a meeting) and find out how you can make a positive impact to your business with proven technology.