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In a changing real estate market, mortgage lenders face increasing demand. If high mortgage rates and increased liquidity management aren’t challenging, then regulatory changes, operation inefficiencies, and economic uncertainty are enough. With high mortgage rates and stagnated origination, many financiers are focusing on mitigating risk and boosting efficiency. This occurs while they manage the heavy loan of growing origination demand.
The primary and secondary mortgage markets may be separate business components, but mortgage originators must understand both businesses intimately. Most companies think from the primary lens. How do we get a loan from ‘I want a house’ to ‘it’s closed and done’ before they walk away? Originators don’t consider the secondary market, even though those loans will most likely shift into the market down the line.
To tackle increased origination demand without over-prioritizing one market, mortgage originators must rely on solutions designed to cut primary market expenses and create more secondary market mobility. Instead of hiring and firing a large origination task force, outsourcing origination tasks can save time. Originators can bring new products to market when their underwriters can avoid the associated learning curve.
SitusAMC — a top-of-the-line provider of investment advice, talent solutions, and digital tools — offers a rare opportunity for lenders and investors. The real estate company handles the entire lifecycle of the loan process, from processing and underwriting to closing and servicing. SitusAMC moves into the business’s primary markets and origination side — transitioning from a secondary market focus — after acquiring Assimilate Solutions, LLC. The company’s understanding of the secondary market helps SitusAMC offer groundbreaking solutions in the primary market. Simply put, SitusAMC views the primary market through a secondary market lens — and that comprehensive approach is invaluable to originators.
SitusAMC’s solutions help lenders and investors handle originations, secondary markets transactions, MSR and portfolio management, and valuations without compromising marketplace agility. Digital tools and technology are only the tip of the spear regarding SitusAMC’s solutions. Lenders and investors can rely on the company for expert-level advice concerning underwriting, investment, securitization, servicing, asset management, and more. Between residential and commercial market professionals, SitusAMC can guide all financiers toward increased profit, efficiency, and sharper analytics.
The real estate company has assisted over 1,500 clients for over 30 years, supporting $20 billion in new loan originations in 2023. Telling financiers they’re in good hands would be an understatement, to say the least.
Removing staffing and talent stress from loan origination
In the primary market, mortgage origination demands can ramp up at a moment’s notice. If mortgage originators want to keep up, they need to rapidly scale their workforce within a short timeline. These “origination task forces” can struggle with a heavy workload, leading to compromised underwriting quality and longer turnaround times. Eventually, layoffs ensue when volume inevitably ramps down, and the process starts again. Underwriters and employees are left out of work, and the company loses manufacturing efficiency. It’s a lose-lose situation. But what if originators didn’t have to rely on traditional staffing models? Many companies have started outsourcing tasks in the manufacturing process with flexible staffing that brings in exterior professionals.
Although this strategy is sound, juggling multiple service providers from competing organizations can be a hassle. Fortunately, SitusAMC can handle that, letting mortgage originators focus on their goals.
How does SitusAMC expand primary market origination?
SitusAMC takes a comprehensive, standardized approach to supporting loan origination and fulfillment in the primary market. The real estate company empowers residential real estate market originators with a licensed underwriting model and loan fulfillment component services, respectively. According to a SitusAMC white paper, component services break the mortgage process into “80 to 100 micro-tasks that can be performed around the globe, 24 hours a day.” Employing assets from different time zones allows companies to boost productivity while shortening turnaround times. SitusAMC’s underwriting services handle every aspect of underwriting with a fully licensed model that will enable originators to move into multiple product areas. While those certainly sound promising, there’s more to what SitusAMC can offer originators in the primary market.
Loan fulfillment component services for residential mortgage originators
SitusAMC offers several services designed to tackle each task and component via a globalized network of third-party employees and partners. Regarding origination support in the residential real estate market, SitusAMC’s global staffing solutions tackle everything from initial and re-distributed disclosures to potential Adverse Action (HMDA). Pre-underwriting, underwriting, and condition clearing are also key component services that clients can access.
Clients can maintain contact with SitusAMC via dedicated Client Relationship Managers that connect mortgage professionals to the company’s team — allowing for clear, consistent communication. For specific loan types like federal loans, SitusAMC offers advisory and consulting services for originators offering federal loan products, subject to frequent changes over time. These services also include an operational readiness assessment.
Overall, component services allow internal loan processors to focus on relationship building. Most processors handle a pipeline of 25 to 30 loans. However, outsourcing can bump that load up to 50 loans and beyond.
Licensed underwriting services and tools for commercial mortgage originators
Commercial real estate originators or investors would relish the opportunity to utilize SitusAMC’s licensed underwriting services and corresponding digital tools. Before underwriting, mortgage originators begin the process with loan sizing — when they estimate the maximum loan amount they can offer a borrower. Loan sizing may add another complication to the loan process, which is why SitusAMC handles that step for originators. Beyond that, underwriting will be more flexible and robust as SitusAMC outsources underwriting to subject matter experts, depending on the loan type an originator faces. Whether it be a GSE-backed loan or a debt service coverage ratio (DSCR) loan, SitusAMC has it covered. Outsourced underwriting also mitigates risk for originators regarding staff turnover risk and retention.
Digital tools also sit among valuable solutions for mortgage originators. SitusAMC employs the BRES Automated Underwriting System (AUS). The BRES AUS can be integrated with a mortgage originator’s LOS for better connectivity. The platform automates decision-making and consolidates workflows with full customization and auditable results.
SitusAMC covers all bases for primary market originators
As residential mortgage originators face increased workloads, partnering with a company that can prepare mortgage originators to succeed with primary market originations is vital to future success. Outsourcing tasks to component service providers makes originators nimble in the market, leading to more success in the secondary market as originators retain clientele for servicing and other processes. SitusAMC covers both bases, helping originators avoid staffing risks and suffering turnaround times. Onboarding can take a few weeks for mortgage originators who choose SitusAMC. As such, the path toward greater efficiency and risk-averse origination is open for residential originators looking to set themselves apart from the competition.
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