Prospering in the face of reduced mortgage volumes
Jan 14th, 2014 | By Daniela DeTommaso
The year 2013 wasn’t bad. The Canadian housing bubble did not burst, interest rates stayed in check and the economy seemed resilient and stable. But, we did watch mortgage volumes diminish. Some of that effect was, no doubt, induced by CMHC belt-tightening around mortgage affordability and perhaps some was just consumer belt-tightening prompted by growing personal debt levels. Whatever the cause, mortgage lenders had to do more with less. How do you maintain profitability when the revenue side of your operation is challenged? You get more efficient and contain costs.
You might wonder how a Title Insurance Blog would relate to this situation – here is the answer. In an earlier post, ‘Mortgage Lenders Need Title Insurance Too’, we outlined the unique benefits of title insurance for lenders – essentially what title insurance protects. But equally important to lenders, perhaps more so, is what title insurance enables. With such things as coverage, enforceability, priority, survey concerns, etc., lenders need to focus on processing efficiency and speed to enhance their offerings. Title Insurance enabled mortgage processing operations deliver those very elements through a combination of automation and unique process capabilities, including:
- Capacity to handle high transaction volumes, exacting service standards and timelines
- Title investigation and insurance commitments are reduced to hours
- Document processing and delivery is streamlined and faster
- Mortgage signings can occur in-branch, sometimes even in-home
- Customer funds are available on signing – no waiting for mortgage registration
- Lower, fixed closing cost for mortgages
All these capabilities mean better service for borrowers. They also mean faster, more efficient and less costly processing for lenders. Those are welcome benefits when shrinking volumes challenge profitability.
Do you have specific mortgage processing challenges facing you? Let’s dialogue – together, we may find solutions.