Mortgage brokers who need help making the most of their time, cutting down on admin work, and ultimately improving the borrower experience have options. But, for the highest chance of success, they’ll need to choose wisely.

Selecting the right third-party support comes down to understanding the needs of your business, finding the right provider, and ensuring a smooth workflow.

What Is Third-Party Support for Mortgage Brokers?

Think of third-party support as any form of outside help for mortgage brokers. This might include individuals, organizations, or even tech tools you can leverage to improve or optimize your business.

Why Do Mortgage Brokers Use Third-Party Support?

The biggest potential benefits of investing in third-party support systems will ultimately depend on the unique pain points of your business, but they typically include:

• Cutting costs
• Reducing manual admin and paperwork
• Improving borrower communication
• Scaling during busy seasons
• Overcoming staffing limitations
• Expanding service offerings without hiring full-time staff

What Types of Third-Party Support Services Are Available?

There are outsourcing options for many aspects of a mortgage business. Some of the most common types include:

• Loan fulfillment and processing services
• Compliance support and audits
• Marketing and lead generation
• Business development
• Technology and automation
• Underwriting

The value of each service will depend on the unique needs of the individual business.

For example: perhaps you have a knack for marketing, but loan processing tends to take up more of your time than you would like. In this case, hiring a marketing agency might not make sense, but leveraging a loan processing service very well may.

When Should a Mortgage Broker Consider Outsourcing?

Any mortgage broker can explore third-party support, from early-career brokers with limited bandwidth to experienced brokers looking to grow more aggressively.

Signs that it’s time to bring on additional support might include:

• Meeting deadlines becomes more challenging
• Client follow-ups take longer than anticipated
• Time needed to oversee company compliance program is hard to find
• Ambitious expansion plans

How Much Does Third-Party Support Cost?

Outsourcing can make a massive difference for mortgage brokers. But it’s certainly not free.

Unfortunately, the total cost is never one-size-fits-all. You’ll need to do some investigating to determine costs in your unique situation.

Typically, it will depend on a few key factors:

• Your local market
• The type of support you’re after
• The experience level of the third-party provider
• The size and scope of your project

How Do You Assess Whether Third-Party Support Is Right for You?

Outsourcing isn’t right for everyone, and mortgage brokers should always ensure business decisions are backed by data.

To determine whether third-party support is right for you:

Evaluate Budget and ROI

As you explore the costs of various third-party support options, compare those expenses to how much you can reasonably pay.

Then, you can use a tool to calculate the approximate return on investment (ROI) of a few different options.

Start by determining the total costs you would pay. Then, determine the potential total financial gains. Include any relevant cost savings (like the salary you’d avoid having to pay an in-house processor) and any relevant revenue increases (like increased referral business with a customer service rep).

Then, enter both numbers into the ROI formula:

ROI = [(Gains – Costs) / Costs] x 100.

While there’s no single benchmark for a “good” ROI, generally, anything above 0% is positive. That’s because it means you’re earning more than you’re spending.

Determine Time/Value Trade-Offs

When evaluating the need for third-party support, money isn’t the only cost. Your time, energy, and effort matter, too.

So, work to identify where your time is currently going. If most of your week is spent dedicated to high-value or business-generating activities, that’s great! But many mortgage brokers find themselves sucked into admin or busy work.

Next, estimate the value of the time you stand to gain back. For example, if handing off repetitive customer communication tasks gives you 10 hours back each month, how many more clients could you serve? How much of your pipeline could you grow?

Run the numbers. Sometimes, even one or two additional deals can justify the investment.

Consider the Borrower Experience

Of course, everything ultimately comes back to the client.

Review recent testimonials or ask current clients for candid feedback. Were response times slower than they’d like? Did they fully understand the next steps? Were you stretched too thin to provide top-notch service?

Their insight could be invaluable in making this decision.

What to Look for When Choosing Third-Party Support

If you’ve decided that third-party support is right for you, it’s time to start researching and interviewing.

What’s best for you will depend entirely on your needs and preferences. But, in general, it might help to explore relationships with third-parties that have:

• Proven mortgage industry knowledge
• Understanding of compliance and/or data security
• Compatibility with your tech ecosystem
• Strong communication skills
• Solid reviews and references

Select a few top contenders to move along to the interview stage.

Key Questions to Ask a Third-Party Provider

To get to know the candidates a bit better, ask clarifying questions to determine what the working relationship might look like.

Consider starting with:

• How long have you supported mortgage professionals?
• Which loan origination system (LOS) platforms have you worked with?
• What is your approach to maintaining compliance?
• How do you ensure borrower data is secure?
• What does your onboarding process include?

The right partner will provide answers that align well with your needs and expectations.

How to Efficiently Onboard Third-Party Support

To ensure they’re ready to go on day one, align on a clear onboarding plan.

This might include:

• Defining responsibilities and workflows: Who will handle what? What will success ultimately look like?
• Setting turnaround-time expectations: Discuss all relevant check points and due dates before any work begins.
• Granting tech access: Send invitations or login credentials for any relevant tech platforms ahead of their start date, if possible.
• Training on communication standards: Share tips, tricks, and best practices. Also, explain any industry or brokerage-specific jargon.
• Monitoring performance: Evaluate their work as it comes in. Set up a meeting to touch base and provide any relevant feedback, if needed.

Wrapping Up: Third-Party Support for Mortgage Brokers

Third-party support has the potential to level-up your mortgage business. But it must be approached with strategy and intention.

Work to carefully evaluate business needs, understand all your options, and eventually you’ll have all the information you need to choose the right path forward — with a new third-party support system or otherwise!

Key Takeaways

• Third-party support can help mortgage brokers save time, reduce administrative work, and improve the borrower
• The best fit depends on your unique business needs.
• Outsourcing is most valuable when you’re short on bandwidth, missing deadlines, or planning to scale.
• Costs vary widely, so compare options and estimate ROI.

Ask the right questions up front and align on workflows, expectations, and access to ensure a smooth onboarding.