The Pros and Cons of Mortgage Processing


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The more you know about any job or business venture, the more likely you are to be successful. This month, we explore the pros and cons of mortgage processing for both in-house processors and contract processors.

Rewards of In-House Processing:

1. Abundance of training/continuing education resources
2. Management support for processing problems or conflict resolution
3. No overhead or business paperwork (i. e. , accounting)
4. Your professional profile is enhanced from your employer’s status in the industry
5. Free or reduced costs for association and organization memberships
6. Pre-determined hours
7. Employee benefits (health, dental, vision, employee
assistance program, tuition reimbursement, etc. )
8. Possible expense reimbursement(meals, travel)
9. Specific and/or limited responsibility
10. Performance incentives and bonuses
11. Retirement or pension plan
12. Part of a team (support, conversation, friendship)
13. Recognition of accomplishments
14. Professional (and visually appealing) work environment
15. High capacity equipment
16. Access to the latest technology
17. Set salary with periodic increases
18. On-site or readily available technical support
19. Other indirect benefits – Desk person to screen calls;
fax and mail sorted and delivered

Rewards of Contract Processing:

1. Flexibility in work hours to allow for lifestyle preferences, i. e. , childcare, college, family time, church, exercise/recreational activities, hobbies, etc.
2. Flexibility in work location (home, satellite office, virtual office, or other)
3. More opportunity to form independent relationships with lenders/vendors
4. Freedom to choose brokers and originators you process for
5. Personal satisfaction tied to business success
6. Ability to determine the type of services included in standard processing
7. Freedom to explore new territory or projects
8. Ability to obtain continuing education as needed
9. Ability to process loans nationwide
10. Ability to have higher earning capacity based on your services offered and the territory covered
11. Ability to match compensation with the size of the project or difficulty of a file
12. Building a client base
13. Tax deductions for business expenses
14. Ability to provide jobs for others
15. Ability to standardize procedures
16. Ability implement process improvements quickly
17. Ability to grow the business at your own pace
18. Tremendous personal and professional growth
19. Opportunity for financial independence

Challenges of In-House Processing:

1. Growth stifled until management feels you're ready
2. Difficulty getting time-off for vacations or other personal needs
3. Lengthy chain of command or lengthy process for implementing change
4. Inadequate compensation and/or benefits

Challenges of Contract Processing:

1. Capital requirements to run your business
2. Isolation
3. Long and sometimes unpredictable work hours
4. Total or significant responsibility for all facets of processing (marketing, processing, payroll, etc. )

Stephanie Graham is a mortgage professional with more than two decades of experience in both retail and wholesale lending. Stephanie has excelled in a number of mortgage industry positions including CRA officer, corporate trainer, and consultant. Stephanie is currently a part of the executive team of Complete Mortgage Processing. More tips and techniques for mortgage processing and origination can be found at .


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