Contract loan mortgage processing is the process of reviewing and approving loans for closing. It usually includes input from various departments, such as underwriting, accounting, legal, and operations. Contract processors are responsible for signing off on each loan before it can be approved to close. It is the final step in the mortgage lending process that ensures all aspects of a home loan are complete. For example, contract processors have to make sure all proper documentation has been submitted and go through contingencies such as bankruptcy or divorce before approving the loan and letting it close. Outsourcing contract processing of mortgages to an outside company can be a great solution for many businesses. One benefit is that, if the mortgage industry is not your core business, you wouldn't have to invest in expensive equipment or software and hire staff internally to manage contract production needs, which reduces your costs and allows you to focus on generating new loans and client relations.
Another potential advantage could be that it allows companies with high volumes of contracts to output many loans and satisfy all of their customers. This way you can scale up as the company grows in size and have lower overhead, especially when times are slow.