How to Choose a Mortgage Provider: A Comprehensive Guide
 Mortgage Processing

How to Choose a Mortgage Provider: A Comprehensive Guide

Matthew Turner
Matthew Turner
December 28, 2023
Last updated on:

December 28, 2023


Read time: 4 mins

A strategic delegating decision for mortgage processing helps financial institutions benefit from enhanced operational agility, cost-effectiveness, and streamlined processes. The right partner goes beyond being a mere vendor, becomes an extension of the lenders, and offers mortgage processing services.

With their industry knowledge and experience, they easily navigate the mortgage landscape's complexities. However, choosing the right mortgage BPO partner presents many challenges for lenders. Finding the right partner who can scale their services or accommodate fluctuations in mortgage demands becomes a challenge.

This blog aims to help lenders make informed decisions on choosing the right partner and establish a productive and long-lasting partnership.

According to a report by Infosys BPM, around 64% of customers think the time it takes to close a loan is the most stressful part of the process.

Key Factors to Consider for Selecting a Mortgage Processing Partner

Here are key factors lenders should emphasize while selecting the right partner for delegating mortgage services.

1. Assess Expertise and Experience

Assessing the expertise and capabilities of a mortgage processing partner is critical when selecting a reliable collaborator for mortgage-related tasks. The partner's proficiency directly influences the efficiency and quality of mortgage processes. Moreover, expertise assessment serves as a comprehensive evaluation of a partner firm's capabilities. It also ensures that they align with the specific needs of the mortgage industry. Here are some key considerations:

  • Industry Experience: Evaluate how long the prospective partner has been in the industry. The longer the years mean, the more exposure they have in managing mortgage processing tasks and understanding the changing dynamics of the industry.
  • Portfolio Review: Examine the partner's portfolio to gauge the breadth and depth of their expertise. Analyze the type of work they have done for different clients to know about their versatility and adaptability to various tasks.
  • Client References: Enquire about the type of clients they have worked with in the past. Seek their contacts and reach out to them to know about the prospective partner's work quality. A reputed vendor will share the contacts willingly.
  • Skill Set and Technologies: Assess the partner's skill set and proficiency in loan origination systems, document management systems, and business process automation to align with the specific requirements of your mortgage-related tasks.
  • Certifications and Compliance: Verify the partner's certifications, such as Mortgage Bankers Association (MBA) Certification, Certified Mortgage Compliance Professional (CMCP), SOC 2 Certification (Service Organization Control 2), and other relevant standards.

How to assess the creditworthiness of a mortgage borrower? 

For accessing creditworthiness, it is important to evaluate a mortgage borrower's creditworthiness by examining key factors such as credit score, payment history, income stability, and debt-to-income ratio. To know more, read our blog:Tips to Assess Mortgage Borrower Creditworthiness? How to Expedite the Process?

2. Evaluate Reliability and Performance

Evaluating the reliability and performance of a mortgage BPO partner is essential to ensure seamless operations and successful collaboration. The partner's reliability directly influences the consistency and dependability of mortgage processes, and the performance directly impacts efficiency and overall outcomes. Here are some key considerations for evaluating reliability and performance:

  • Service Level Agreements (SLAs): Review the SLAs offered by the partner, paying attention to key performance indicators (KPIs) such as response times, processing speed, and accuracy benchmarks. Clearly defined SLAs ensure transparent expectations.
  • Client Testimonials: Seek feedback from current or past clients to gain insights into the partner's reliability, responsiveness, and overall performance. Positive testimonials affirm their track record of delivering satisfactory outcomes.
  • Historical Performance Data: Scrutinize the partner's historical performance metrics, including turnaround times, error rates, and customer satisfaction scores, to gauge their consistency and reliability over time.
  • Communication Channels: Evaluate the partner's communication infrastructure and channels. Asses whether the partner delivers various communication channels, such as email, video conferencing, phone calls, etc, to ensure that the partner maintains transparent and responsive communication. 
  • Disaster Recovery Plans: Inquire about the partner's disaster recovery plans, including business impact analysis, alternate work locations, data backup, and redundancy.  This will safeguard against potential disruptions impacting performance and minimize data loss. 
Expert's view on mortgage rates 2024
Image 1 - Expert's view on mortgage rates 2024

3. Consider Technology Capabilities

Considering technology capabilities is essential when selecting a mortgage processing partner, as it ensures seamless operations, swift processing, and compliance adherence. Advanced tech infrastructure enhances efficiency, data security, and scalability, which is crucial for meeting evolving industry demands while providing innovative solutions for clients. Here are key considerations for assessing technology capabilities:

  • Technology Stack: Assess the partner's technology stack, including Loan origination systems (LOS) like Encompass, document management systems (DMS) such as DocuWare, and Customer Relationship Management (CRM) tools like Salesforce. to ensure alignment with industry standards and your specific requirements. 
  • Integration Capabilities: Evaluate the partner's ability to integrate with existing systems. Assess compatibility with industry-standard platforms like Encompass, Calyx, and Ellie Mae, ensuring seamless integration with your mortgage systems.
  • Innovation and Adaptability: Inquire about the partner's commitment to staying abreast of technological advancements. Confirm expertise in cutting-edge technologies like blockchain for secure, transparent transactions and a commitment to adapting to evolving mortgage tech trends.
  • Automation and AI Integration: Assess the partner's use of automation and AI technologies to streamline mortgage processes such as loan origination, document verification, and other decision-making processes.
Legal and Contractual Considerations for Mortgage Outsourcing Partner
Image 2 - Legal and Contractual Considerations for Mortgage Outsourcing Partner

4. Ensure Scalability and Flexibility

Ensuring the scalability and flexibility of a mortgage processing partner is essential to accommodate evolving workloads and dynamic business needs. The partner's ability to scale operations and adapt to changing requirements directly influences the efficiency and success of mortgage-related processes. Here are key considerations for assessing scalability and flexibility:

  • Scalability for Workloads: Evaluate the partner's capacity to scale operations based on varying workloads. Ensure the partner's cloud infrastructure (e.g., AWS, Azure) supports dynamic scaling, efficiently managing spikes in mortgage processing demand through auto-scaling and load-balancing mechanisms.
  • Flexible Resource Allocation: Verify the partner’s expertise in workforce management tools like Workday. Also, evaluate how the partner enables real-time adjustments in staffing levels for mortgage processing tasks.
  • Adaptability to Industry Changes: Inquire about the partner's adaptability to changes in the mortgage industry. Assess proficiency in adopting emerging technologies like blockchain or machine learning, indicating the partner's readiness to adapt to evolving mortgage industry standards and practices.
  • Flexible Contract Terms: Discuss contract terms to ensure flexibility in adjusting services as needed. Negotiate for adaptable contract terms to ensure flexibility in service levels, deliverables, and pricing structures to accommodate your changing mortgage business requirements.

5. Assess Cultural Fit

A strong cultural fit fosters effective communication and collaboration, which are vital for project success. It will align values, work ethics, and communication styles with your business. A compatible culture fosters collaboration, understanding, and teamwork, leading to smoother operations, enhanced productivity, and a shared commitment to achieving common goals. Hence, finding a partner who shares the values, culture, and work ethic is crucial. Here are some of the key considerations for assessing cultural fit:

  • Shared Values and Ethical Standards: Assess the alignment of the partner's values with your organization's core principles. Confirm alignment with industry codes of ethics like the Mortgage Bankers Association (MBA), ensuring a cultural fit based on shared values, integrity, and ethical principles in a mortgage.
  • Communication Style: An effective information exchange is essential in mortgage processes. Evaluate the partner's communication tools (e.g., Slack, Teams) and styles, ensuring compatibility with your preferred channels for seamless collaboration.
  • Collaborative Approach: Inquire about the partner's approach to collaboration and ensure their willingness to work closely with your team. For this, assess the partner's collaborative tools (e.g., Google Workspace, Microsoft 365), emphasizing a collaborative approach in mortgage tasks.
  • Work Culture Adaptability: A compatible partner should seamlessly integrate with your mortgage business's work culture and values. Assess the partner's ability to adapt to different work cultures and confirm their flexibility in accommodating diverse working styles and practices.
  • Organizational Values Alignment: Validate alignment with your organization's values using tools like cultural assessment surveys. Ensuring unity in mission, vision, and values is crucial for a harmonious and productive mortgage partnership.

6. Evaluate Data Security and Compliance

The partner's commitment to robust data protection directly influences the trustworthiness and legal compliance of mortgage-related processes. Here are key considerations for assessing data security and compliance:

  • Data Encryption Practices: Assess the partner's data encryption protocols such as TLS Encryption, Secure Sockets Layer (SSL) Encryption, and Advanced Encryption Standard (AES) to protect sensitive information during transmission and storage.
  • Access Controls and Authentication: Evaluate the partner's access controls and authentication mechanisms, including role-based access control, single-sign-on, Access logging and monitoring, and biometric authentication.

  • Compliance with Data Protection Laws: Verify the partner's compliance with data protection laws, including GDPR, Gramm-Leach-Bliley Act (GLBA), California Consumer Privacy Act (CCPA), and Federal Trade Commission (FTC) Act.
  • Secure Data Transmission Protocols: Inquire about the protocols such as Hypertext Transfer Protocol Secure (HTTPS), Internet Protocol Security (IPsec), and SFTP (Secure File Transfer Protocol) used for secure data transmission.
  • Physical Security Measures: Inspect the partner's physical security protocols, including access controls, surveillance systems, and secure data centers, ensuring robust measures to protect physical assets and sensitive mortgage data.

7. Evaluate Onboarding Process

Evaluating the onboarding process of a mortgage BPO partner is crucial to establishing a seamless and efficient collaboration from the outset. The onboarding process sets the tone for the entire partnership, influencing communication, workflow, and overall effectiveness. Here are key considerations for assessing the onboarding process:

  • Clear Onboarding Roadmap: Confirm a well-documented onboarding process that outlines key milestones, responsibilities, and timelines. Utilize project management methodologies like Agile or Scrum for transparent progress tracking.
  • Communication and Expectation Setting: Evaluate whether the provider offers video conferences, emails, and documentation during onboarding.  Also, inquire whether they conduct workshops and interactive sessions to align on communication norms, setting the foundation for effective collaboration.
  • Knowledge Transfer and Training: Inquire about the knowledge transfer mechanisms, such as Knowledge repositories, cross-training initiatives, etc, provided during onboarding. 
  • Collaborative Orientation Sessions: Assess whether collaborative orientation sessions are part of the onboarding process.  Ensure the partner's team conducts interactive workshops, role-playing scenarios, and team-building exercises to foster a collaborative culture and ensure a smooth transition into mortgage processing tasks.


Looking ahead, the future of mortgage processing holds exciting possibilities. As the mortgage industry evolves, selecting the right third-party BPO partner partner will be crucial for success. Moreover, technological advancements will further enhance efficiency and streamline processes, while data security measures will continue to evolve to protect sensitive customer information. Hence, embracing a partnership with a forward-thinking mortgage service provider will be the key to positioning lending firms effectively in an ever-changing industry.

At Invensis, with extensive expertise in the mortgage industry, we provide end-to-end solutions tailored to meet specific business needs with our mortgage processing services. Our expertise includes mortgage processing, underwriting, loan origination, document verification, quality control, and customer support. Also, our experts leverage advanced technology, industry knowledge, and best practices to streamline mortgage processes, improve efficiency, and reduce costs. Contact us if you are looking for a reliable and valuable mortgage third-party partner.

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