Leaning on tech solutions to boost lender profits
The servicing industry is in the midst of a drought as companies cut back on employees and lenders find ways to overcome a downturn in refinance applications.
But in an effort to buffer against the drop, companies, including Total Mortgage Services, are releasing products to help lenders maintain profitability.
Total Mortgage Services released its Total Mortgage Processing platform, an end-to-end mortgage processing platform for mortgage lenders, community banks, credit unions and third-party originators.
"In this downturn, we are getting a lot of demand for this. We decided to roll it out on more of a larger scale and are pleasantly surprised at the demand that is out there for this particular product," said John Walsh, president of Total Mortgage.
The solution supports both retail and wholesale originators, providing them with a 100% customizable processing platform.
"Mortgage processing as a service will become a more important processing model as the cost of originating a mortgage increases due to numerous factors including regulatory compliance," Walsh added.
As the industry continues to evolve, it is becoming more difficult to manage the compliance solutions. There is a need from a compliance aspect of it, Walsh said.
"There are a lot of places that are slower these days. They can not support the office anymore. They do not want to go out of business. But they are looking for a business that will help them process the loans," Walsh explained.
As HousingWire previously reported, mortgage analysts are anticipating a new round of layoffs in the sector as banks try to build new revenue sources.
While lenders search to boost their profits, the industry will continue working to offset the drawback with new products and platforms.