As published in Scotsman Guide's Residential Edition, April 2007.
Many vendor partnerships are needed to get a loan closed. You need a title agent, who may or may not also take care of settlement services. You also need an appraisal, a flood determination and possibly flood insurance. If your borrower is purchasing a new home, you need homeowners' insurance.
It takes time and energy to secure and manage all these relationships, especially if you work with numerous companies for each service. To remain successful, mortgage professionals can streamline this area of their business through vendor management.
Several companies now provide the full suite of services required to originate a loan. A few others take it a step further by offering insurance services, such as homeowners' and flood insurance.
By relying on a nationwide network of suppliers, vendor-management companies can often offer quick turnaround times and quality service at competitive prices. Plus, working with just one central provider lets brokers spend more time securing new business and assisting their borrowers and less time juggling vendors.
Through advanced technology, many vendor managers allow you to visit a single Web site or call one phone number to order all services you need to close a loan. In fact, some vendor-management companies boast shorter-than-average turnaround times on title services.
Using the central site, you can track and sort all the services ordered online. This means you won't always have to enter vendor information into spreadsheets manually to track and manage services ordered from different companies.
Many vendor managers' have paperless systems that generate automatic e-mails to confirm the services you've ordered and automatic updates when work is completed. That means you don't have to wait for phone calls or faxes. Most vendor managers allow you instant access to portable-document-format (PDF) images of documents, such as title commitments, signed loan docs, flood certificates and completed appraisals.
Because they often have a nationwide network, vendor-management companies also can allow you to secure closing services for all borrowers, regardless of location. This is especially helpful if you do business in multiple cities or states or are looking to grow your territory.
When researching vendor-management companies, look for one with a network that covers all the areas you do business and more.
When trying to close a loan, if one document is missing, you don't get paid. Vendor managers prescreen and verify licensing for each service-provider before adding them to their network to ensure quality and reliability.
They also rate the vendors' performance regularly to ensure high-quality service. With one company accountable for all the services related to your borrower's loan, you have one point of contact and less to manage.
Vendor-management companies typically offer competitive pricing on all services. Plus, you'll save on the cost of paper and file storage by managing all these services online. The time you save can translate to money saved.
Working with a vendor-management company can be beneficial if you're tired of juggling a number of vendors to receive all the services for every loan. These partnerships can help you improve efficiency and productivity so that you can close more loans and earn more.
Jim Potter is director of insurance for Inzura, Accredited Home Lenders' vendor-management company. Inzura provides title, settlement, appraisal, flood-determination, homeowners' and flood-insurance services in 50 states. Learn more at www.inzura.com or call (866) 303-9925.
Send e-mail requests to email@example.com. Accredited is a premier mortgage-banking company engaged in the business of originating, servicing and selling residential mortgage loans in the United States and Canada. Learn more about Accredited at www.accredhome.com or call (866) 858-LEND (858-5363).