Processing alternatives
Whether originators have in-house processors or rely on contract-processing services, offshore processing is an option. For those who wish to keep their in-house processors, offshore processing can offer a cost-efficient option for handling higher-than-average loan volumes without burdening current processors.

It can also provide a backup when processors go on vacation or leave. It enables a company to scale its business while controlling costs. Offshore processing allows others to outsource processing chores when they re-assign their processors to revenue-promoting tasks.

For companies leveraging domestic-contract-processing services, offshore entities provide a cheaper, quick alternative. Instead of paying more than $400 per loan and $100 to $150 for a canceled loan, originators can expect to pay $200 to $250 to process files overseas and around $30 for a canceled loan. Furthermore, offshore companies feature groups of processors that work on files methodically as a team; no one processor can hold up a file from expeditious processing.

Technological aspects
Technological advances have made it easier to work with companies overseas. Brokers can e-mail and upload electronic documents on the Internet, send faxes or make calls into a 1-800 number that automatically connects callers to agents overseas. Other than a possible foreign accent, it’s difficult to know whether the loan processing is taking place in Bangalore, India, or Milwaukee.

Offshore-processing companies also have produced software programs that let originators submit loan files. The process can be simple: Originators fill out an online form and submit documents for processing. These documents can be sent electronically or faxed. The forms can be mailed to the processor at a U.S. mailing address.

At every step in the process, originators are notified of the loan’s progress and can view its status online. Processors also are available via e-mail or phone.

Offshore services also can keep files digitally, rather than on paper. This can help originators go paperless without investing in the necessary infrastructure.

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