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Toll Free: 1 800 371 6224 | US: +1 650 204 3191 | UK: +44 8082 803 175 | AU: +61 1800 247 724 | Philippine Local No: 63-2-83966000

mortgage process
Is It Advisable To Have a Mortgage Process Outsourcing?
A blog banner by Magellan Solutions titled Characteristics of a Great Third Party Mortgage Processing Companies
Characteristics of a Great Third Party Mortgage Processing Companies

Home | Blog | Advantages of a Loan Processing BPO

Advantages of a Loan Processing BPO

By Yelyna

Updated on April 12, 2024

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Advantages of a loan processing center

The U.S. financial crisis had an impact on the outsourcing industry. Mortgage service providers were the most affected ones. Because of this, many large corporate houses filed for bankruptcy.

The financial meltdown in the U.S. may have affected many outsourcing firms. But this did not stop them. They decided to find new opportunities in Mortgage Process Outsourcing (MPO).

Key advantages that MPO provides:

  • Streamlining of lengthy and complicated processes

Magellan Solutions is a BPO firm with experience in mortgage loan verifications. We are well-equipped to train our people to conduct these processes.

  • Ability to follow up on repayments and defaults

Our agents will examine, investigate and analyze all relevant documentation for claims.

  • Use of integrated, automated systems

The mortgage industry is undergoing a technological transition. From the standard in-house loan processing arrangements, they move operations by outsourcing.

  • Increased efficiency and reduced costs

Outsourcing allows firms to reduce timelines and costs of mortgage processing.

  • Mortgage lenders get access to the latest digital technology

As a BPO company, we guarantee to bring expertise in the newest technology. As a result, mortgage lenders can take advantage of digitized infrastructure.

  • Assurance of information security

Significant investments need intense security. We assure you of the benefits of information security through outsourcing.

Have a secured mortgage processing.

Listed are some documents to get a loan file through underwriting. Loan officers will discuss which are not needed. Meanwhile, they will also tell you the ones that are priorities. 


  • Name of current employer, phone, and street address
  • Length of time at current employer
  • Position/title
  • Salary, including overtime, bonuses, or commissions


  • Two years of W-2s
  • Profit & Loss statement if self-employed
  • Pensions, Social Security
  • Public assistance
  • Child support
  • Alimony


  • Bank accounts (savings, checking, brokerage accounts)
  • Real property
  • Investments (stocks, bonds, retirement accounts)
  • Proceeds from the sale of the current home
  • Gifted funds from relatives (e.g., down payment gift for FHA loan)


  • Current mortgage
  • Liens
  • Alimony
  • Child support
  • Car loans
  • Credit cards
  • Real property

Property Information

  • Street address
  • Expected sales price
  • Type of home (single-family residence, condo, etc.)
  • Size of property
  • Real estate taxes (annual)
  • Homeowner’s Association dues (HOA)
  • Estimated closing date

Financial Blemishes

This is from various consumer credit reporting agencies. It shows how you paid back the companies you borrowed money from. Furthermore, it shows how you met other financial obligations. 

  • Bankruptcies
  • Collections
  • Foreclosures
  • Delinquencies

Type of Mortgage

  • Fixed or adjustable
  • Forward or reverse
  • Conventional
  • Government-insured: V.A., FHA, USDA
  • Jumbo

VA Certificate of Eligibility (COE)

V.A. loans will need proof of military service. The VA provides a Certificate of Eligibility (COE). The lender will then be able to pull it for you.

The Loan Estimate

Documentations from above are being compiled together to produce your loan estimate. This describes the terms and predicts the costs of your loan. By law, you must receive it within three days of your application.

A loan estimate is a statement of the terms and estimated fees. It does not mean that you’re approved or denied a loan. It’s like understanding the work and how much it’ll cost.

Critical Benefits of Mortgage Outsourcing

Outsourcing your loan processing for a mortgage provides a lot of benefits. Here are the benefits if you choose to outsource in the Philippines.

1. Stellar customer service

Customers are the primary beneficiaries when you improve your services. Mortgage lending is a tedious task and requires a lot of documentation, resources, and effort from employees. Outsourcing back-office tasks involved in loan processing helps you accelerate the paperwork, minimize errors, and increase productivity. These all lead to better customer service delivery and satisfaction.

2. Faster turnaround time

The mortgage industry is volatile, pushing industry leaders to be creative in their product offerings. The mortgage process involves several steps wherein the possibility for a borrower to back out is always possible.

Mortgage outsourcing minimizes or eliminates such possibilities. It gives your business a faster decision-making process, reducing borrowers to bail out. A shorter turnaround time means you meet your client quota, deliver accurate paperwork, and meet ROI.

3. Focus on core processes and management

The mortgage process involves payment processing, investor and customer relationship management, tax monitoring, accounting, and mortgage underwriting. These tasks are often time-consuming and require attention and supervision from the core management group of your business.

Outsourcing such repetitive and tedious tasks from a reliable BPO company frees your management to focus on creating new products, strategies, managing compliance risks, employee engagement, and overall business development.

Outsource mortgage consultants in the Philippines.

There is a significant factor that financial institutions look for to meet inconsistent demands. One of them is the ups and downs of the housing market. As a result, they end up outsourcing services.

MPO companies must adjust their work. We are well aware that processes in the U.S. vary from state to state. As a result, we are constantly re-orienting our platform to target industry-specific processes.

Are you looking for an outsourcing location? Do you need up-to-date technology and a rich talent base? The Philippines could be on your top list!

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      Advantages of a Loan Processing BPO


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