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               Linear Mortgage Processing Service

Make a Smart Business Choice

As the cost of keeping good loan processors rises; outsourcing loan processing has become a way for mortgage brokers to stay competitive. Linear Mortgage Processing Service will assist you by getting your loans closed quickly while avoiding the cost of a full-time mortgage processor. Our teams of processors are experienced in Conventional, Subprime, VA and FHA loans.

Relieve your stress

• Feel stressed because you don't have enough time to develop new business?
• Spending too much time doing paperwork and following up on details?
• Outsourcing your mortgage loan processing will free you to spend your time where it is most valuable...originating more loans...

More reasons for Outsourcing Loan Processing

› Rely on a specialist with an in-depth knowledge of mortgage loan processing

› Employ a "work smarter, not harder" strategy

› Shorten closing cycles and get paid sooner

› Increase the number of loans closed

› Avoid advertising, hiring and training mortgage processing staff

› Decrease office space

› Increase borrower satisfaction

› Keep current with HMDA reporting requirements

› Utilize a company designed around the workflow of processing 

  Contract Loan Processing Service Advantage

How is our processing fee paid?

Normally, the processing fee is a line item on the GFE and HUD-1. It is paid directly to Linear Mortgage Processing Service at closing. Therefore, there is no need for you to increase your YSP or points to cover the cost of processing.

Getting Started:
It's easy to get started. Just print and sign the processing agreement and fax it to 401-537-9119 there is also a form to let us know the contact information for the Lenders and Title Companies you are comfortable using. That is all that is needed!

FAQ

Q. What is your turnaround time?
A. We order services (appraisal, title) within 24 hours of receiving the loan. From then on we anticipate when documents and information will be required and proactively collect them before they are due.

Q. Do you contact the borrower?
A. It is up to you. For collecting additional documentation we are happy to work through you or contact the borrower directly. For issues involving the terms of the loan, we ask the broker to communicate with the borrower.

Q. Does it matter if you are local to me?
A. No, our customers are located across the country. We are only a phone call away.

Q. How do I get my loan files to you?
A. You can courier, fax, or email the loan file to us. We will confirm receipt and
start working on it right away.

Q. What happens if a loan doesn't close?
A. There is no charge.

About Linear Mortgage Processing Service

Linear Mortgage Processing Service performs contract mortgage processing services for mortgage brokers and lenders throughout the USA. Our team of mortgage processors is experienced in Conventional, Subprime, VA and FHA loans. We take pride in personalized service, attention to detail, and great communication.

Whether you are a large mortgage broker who needs overflow support during high-volume periods, or a small mortgage broker that wants to reduce or eliminate the expense of an in-house loan processor, we can help you get your loans to closing quickly.

What Boston Consulting Group says about Outsourcing Mortgage Processing

Outsource the mortgage-processing business. Many small and midsize competitors, who lack scale and the resulting cost advantages, may wish to consider outsourcing their mortgage-processing businesses. The Boston Consulting Group's analysis of several U.S. competitors suggests that outsourcing can reduce the earnings volatility associated with the business and can increase real earnings throughout the interest rate cycle. (See Exhibit 2.) If an institution believes that the industry's long-term future belongs to competitors with a low unit-cost position, or if its strategy is to focus on mortgage distribution instead of mortgage production, then it should consider outsourcing.

There are two main approaches to outsourcing the business. The first is to combine back offices and infrastructure with those of other players. Commerzbank, Deutsche Bank, and Dresdner Bank in Germany, for example, has merged their mortgage subsidiaries to achieve economies of scale. Likewise, savings banks in the eastern part of the country have built a mortgage production facility to attain greater scale and efficiency in their middle- and back-office functions. It also sometimes makes sense to outsource selectively, retaining in-house the more strategic functions that involve personal business matters. Abbey National in the United Kingdom has outsourced much of its mortgage processing but has retained credit assessment, security documentation, and collection in-house because of the "high touch" nature of these functions.

The second approach is to outsource the business on a private-label basis. This tactic can dramatically improve the economics of the business for large and midsize players, and allow them to focus on developing and managing customer relationships. Although revenues may drop, profits often rise owing to lower costs. In the United States, many institutions-including FleetBoston Financial, Merrill Lynch, and American Express-have chose this route, relying on companies such as Cendant Mortgage to process their mortgage businesses. Thus, by leveraging the capabilities of larger and more efficient players, these companies have continued to own the customer relationship even as they have significantly reduced head count, capital, and high-fixed-cost infrastructure.

Whichever way it's done, outsourcing must be carefully managed. The first priority should be to ensure that an institution's brand is not compromised and that its customers' expectations are met. Companies that outsource to competitors also have to guard against those competitors' efforts to cross-sell other financial products and services to their customers. 

Those considering outsourcing also need to be mindful of hidden costs. In some countries, such as Germany and Australia, value-added tax has to be paid to companies for services provided, making it harder to realize economic benefits from outsourcing. Germany is also one of several countries with relatively strict labor laws that make it difficult to reduce staff to achieve benefits from outsourcing. Furthermore, while standard prices may decline, business-processing companies may exact heavy charges for any changes-in processes, products, or promotions, for example-which the outsourcing companies require. 

Finally, the mortgage provider must carefully evaluate the risks of ceding control over reinvestment and new-product development in the mortgage business.