Archive: Cost-to-Close

It is the only true apples-to-apples comparison of lender performance available in the industry.

The numbers are in! Where do you fall in the Mortgage Cadence Annual Benchmarking Study?

We expect this change to be more significant for the industry overall than TRID. Those that don’t take this change seriously may learn that truth the hard way. Are you ready?

"Every $1,000 saved in production costs could be used to decrease rates by as much as 10 basis points. This constitutes a fantastic competitive advantage to the lender who understands how to achieve a low cost-to-close."

"A single technology platform stores all relevant loan and borrower data in the same way and in the same place, simplifying audit trails and compliance reporting. This alone has been reason enough for many lenders to put all real estate lending on the same platform."
Matt Hydrew, EVP Sales

More than 50% of your Cost-to-Close is labor, so monitoring this metric helps management focus their attention on those activities that are affecting production and dragging down profitability.

If solely technology could make the difference, those using the “best” LOS would all perform at a very high level. The truth is, however, that technology is only part of the answer.

Becoming a high-performance lender will reduce the cost to close. Our data shows the average lender will save $3 million per year.

Mortgage Cadence is committed to providing lenders with the tools to help solve for these increased compliance demands, and our integration with ComplianceAnalyzer will do just that.

Tracking these KPI’s and maximizing them is one of the surest signs of a high performance lender.

AccountChek’s asset verification process, which can be completed in minutes from any web-enabled device, directly addresses this growing consumer demand for greater convenience in the mortgage transaction.

“The IT department can only go so far. Everyone says they follow procedures, but if you question them closely they will acknowledge making exceptions.”

In the study, participants cited a number of reasons for not yet reaching their digital mortgage goals, with about 44.1% blaming current internal technology limitations.

"Fintech has been an underinvested segment and lenders’ interest in spending to improve digital outcomes is driving investment into mortgage technology."

The product suite walks prospective homebuyers through the mortgage application process step-by-step and enables clients to provides loan status and other information related to the borrower’s loan application via tools within the platform.