Lenders looking to reduce per-loan origination costs should consider the benefits of bundling origination services with Chronos Solutions. The efficiency of bundling with Chronos not only yields average cost savings of 15-20%, but improves quality throughout the loan process. And unlike some larger companies, these benefits are delivered without sacrificing customer service.
“The economic lift that clients get from bundling is important in this purchase market,” Matt Slonaker, executive vice president of business development and marketing at Chronos Solutions, said. “Reducing costs is the No. 1 reason that lenders are looking to bundle, but there are many other benefits they get as a result.”
One of those benefits is the quality of the products themselves. Chronos spent the last few years strategically acquiring companies to build an end-to-end process with best-in-class solutions. The company now provides a complete range of customized mortgage and real estate services, from verification and valuation to HOA solutions, REO asset management and disposition, tax monitoring, lien release, online marketing & auctions, title and more.
For example, Taxdoor is an automated tax transcript retrieval process that cuts IRS 4506-T rejection rates in half. Instead of lenders relying on consumers to accurately fill out the form — and then spending QA resources to verify that accuracy — Taxdoor puts the lender in the driver seat.
When a top 30 mortgage originator implemented Taxdoor earlier this year, Chronos centralized the company’s tax transcript process so that instead of each branch ordering transcripts, the company could consolidate that into just three locations. The top 30 originator not only reduced its rejection rates, but also improved efficiency throughout its loan operations.
Another significant advantage of bundling is the efficiency of using one vendor for multiple solutions.
“Companies achieve greater business continuity by bundling solutions,” said Michelle Steinmetzer, senior vice president of operations, outsourced and origination solutions at Chronos. “Even with multiple products, our clients will have the same customer service group, giving them one point of contact to interface with us.”
With fewer vendor relationships to manage, companies gain efficiency while getting a compliance boost. Chronos is a Data Validation Service provider for Fannie Mae’s Day 1 Certainty program, so lenders receive rep and warrant relief at the outset of the loan. And because Chronos is SaaS 16 compliant, bundling is totally compatible with security.
Most importantly, Chronos bucks the trend of many larger providers today which are raising their prices while offering an inferior level of service. Chronos’ excellent customer service is one reason lenders and servicers who have previously been with larger solution providers are making the switch to Chronos.
“We’re having some serious conversations with top 10 servicers around the tax business,” Slonaker said. “A larger player has the business today, but these companies are very frustrated with the level of service they’re receiving and the costs associated with buying from the larger supplier.
Steinmetzer agreed. “Those competitors are going out with price increases right now, but offering less customer service. We’re more flexible so we customize and tailor our services to each company and we can still go out with competitive pricing,” she said.
This competitive pricing includes offering companies one simple fee structure for multiple solutions.
“The way we tailor solutions and services for our clients is what really sets us apart,” Chronos CEO Mark Hikel said. “We truly are large enough to execute but small enough to care.”
For more information regarding best practices and the benefits of bundling origination services, read our white paper here.