3 reasons you need automation to grow third party origination

Working with third party originators (TPOs) is a smart way to quickly grow your business at scale, but you need to have the right systems in place to make this strategy profitable. Oftentimes, inadequate technology and poor customer experiences create a loop of redundancy and inefficiency that slows down review, communications, and funding processes. This unnecessary friction in the process is one of the biggest reasons why customers will look at alternative lenders to partner with. These problems can have a negative impact on margins, and create poor customer experiences. There’s a better way of doing business available through dynamic workflows and process automation. There are 3 main ways to focus your efforts on successful third party origination and loan acquisition.

1. Attract and retain partners

Your third party origination business is only as good as the originators feeding your pipeline, and attracting dependable partners who will succeed and grow with you will become more difficult in this competitive market. Establishing a strategy for attracting the best partners is worth the effort, though, because making and retaining good partnerships is essential for growth. Notable friction points in the customer experience, like repetitive processes, make it hard to attract and retain customers that are essential for growth. When you attract the right customers, and introduce them to a frictionless process, they’ll send you more business, and your business will grow with each new partnership.

In order to keep your customers informed, engaged, and confident in the process, you need to give them a first-class experience managing and delivering loans in one location. Simplify the origination process for them by giving them access to a shared portal where they can:

  • View pipeline reports
  • Deliver loan packages
  • Submit documents
  • Order credit
  • Access automated underwriting systems
  • Submit lock requests
  • eSign documents (for non-delegated loans)
  • View and manage loans in correspondent trades
  • Monitor loan status

Having a system in place that meets all of these needs will attract and retain the best lenders to your organization, and will keep them onboard and productive for the long run.

2. Keep the pipeline moving

The end goal when creating a healthy third party originator channel, for both wholesale lenders and correspondent investors, is to increase the number of loans coming into, and moving out of, your pipeline. The way to grow your third party origination channel is to enable your customers to deliver and ultimately fund loans as quickly as possible. A transparent and a frictionless experience gives you and your customers the capability to scale by doing more loans with less work.

Needing to submit the same information multiple times, importing and exporting documents across multiple platforms, and double checking that everything matches are time-consuming, outdated processes. Using a system that integrates credit providers, automatically provides product and pricing info, and automates underwriting gives your team the tools they need to close loans quickly. Automated communication templates and notifications that are triggered at each milestone keep the origination process moving along intuitively, and that results in more efficiency and profitability for everyone.

3. Reduce risk and improve quality

Third party origination only works if you have a trustworthy way to eliminate risk and ensure quality and compliance, but these tasks can be very time consuming. Automating key processes not only reduces manual work, it also mitigates risk by maintaining compliance and quality every step of the way. Data and documents can be automatically collected and interpreted, and the information there is applied to the loan process, without the inherent mistakes that come along with collecting and analyzing loan information from multiple sources and the stare and compare review method. Using this strategy, loan data and documents stay accurate and in compliance as part of a single system of record.

TPO Connect meets the moment

Encompass TPO Connect® creates the link between you and your customers where you can collaborate in real time. Each TPO gets a first-class experience doing business with you, while you get the control, automation, and security needed to acquire and review TPO loans faster. Your customers will love the greater visibility and flexibility to monitor loan status, submit documents, order credit, submit lock requests, and more. Providing this experience for them is how you attract and keep top TPOs that send higher quality loans. They’ll be at their best in a system that funds faster, provides personal service, and facilitates easy delivery.

Encompass TPO Connect acts as a native extension of your business, with a web-based portal that features your company branding and content. It's easy to create a branded connection with your TPOs with configurable navigation, page layout, color schemes, and an image selector. And looking good isn’t the only benefit. You’ll also have quick access to:

  • Domain manager
  • TPO communication templates and notifications
  • Custom pipeline and report views
  • Real-time updates
  • Disclosure tracking
  • Encompass Integration
  • eSign capabilities

Some of the most successful organizations in the mortgage lending industry use Encompass TPO Connect to manage and grow their business. In our upcoming webinar, we’ll be hearing from seasoned executives from some of the country’s top lenders, who will go into detail about how creating a robust customer experience has helped them to take the next step into the future of digital lending.

You’re invited to attend this webinar, compliments of ICE Mortgage Technology™. You don’t want to miss this rare opportunity to hear straight from customers who know what it takes to gain a competitive edge in the market.

Register for the Wholesale Lenders session to find out how you can reduce friction in your collaboration processes and gain a competitive advantage, featuring Marketwise, PRMG, and Towne Mortgage Company. 

Wholesale Lenders register here.

Register for the Correspondent Investor session to learn all about how to use Effective collaboration to retain and grow your correspondent business, featuring Angel Oak Mortgage, FBC Home Loans, and MarketWise Advisors.

Correspondent Investors register here.

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