Investor Delivery Solution “Turns” Your Warehouse Line 1.5 x’s Faster

Speed up the “turn” of your warehouse line and drive a 272% ROI doing it – the loan origination to investor delivery process can be burdensome, and delays at the end of the loan cycle can cost you your profit margins. By more efficiently gathering loan documents and completing supporting tasks, with the help of our SaaS enabled lending solution, can help turn your warehouse line 1 1/2 times more per month. 

Contact us today and ask about the USA-ONE Investor Delivery System

More and more lenders are adopting the e-mortgage mantra, but today even with web based loan origination, few are fully functional end-to-end including Investor Deliver. There are significant reasons why lenders are investigating this paperless solution. The benefits were quantified in 2004 when CC Pace and The STRATMOR Group conducted a time-and-motion study on behalf of the Mortgage Bankers Association (MBA) showing that lenders could save about $250 per loan by getting rid of the paper. This is interesting to mortgage lenders, but even more interesting to the investors. Today, buyers of at least 70 percent of the non-agency paper sold into the secondary market today are ready to take an electronic deal, the majority of main street brokers are not set-up to send them though. 

Benefits of the USA-ONE Investor Delivery System

• Reduce Settlement Times – Lenders using Investor Delivery products experience a 1/3 reduction in settlement time, allowing for additional “turns” in their warehouse lines.
  • Clients have shaved dozens of days off their closed loan back end processing; allowing clients to do $25 million worth of business using a $18 million line of credit.
• Secure - Loans are delivered to Investors directly from the desktop through SSL secure protocols.
• Release Loan Packets Directly From Your Desktop - Select an Investor, identify the loans for delivery, and send it. No hand copies, no FedEx.
• Real-Time Delivery - Present loans within minutes - no overnight couriers are required. Eliminate investor mailroom processes, eliminate Investor scanning; maximize your lock expirations.
• We Manage the Investor Imaging Specifications – USA-ONE Investor Delivery is tested and approved by our investor partners.
• The 5 Largest Investors Have A Specific Stacking Order and Document Index Specification - We electronically re-stack and re-name your imaged documents upon delivery based on the investor’s requirements.
• Eliminate or Reduce Your Shipping Costs – Our electronic Investor Delivery system provides significant reductions in overnight shipping costs.
• Eliminate Lost Files – Because everything resides within a secure, backed-up Document Management System [DMS], there’s no chance of lost files.

Though lenders want to get the paper out of their process, the Investor does not care whether it originates from the point of sale or is imaged at the closing table and run through optical character recognition (OCR) software before delivery. So long as the Investors can see the loan quickly and without imaging mistakes, they are glad to provide discounts in costs and time.
 
Saving $250 per loan may be enough to get the largest lenders to submit to a CapEx acquisition, the vast majority of the nation's loan originators cannot invest in on-site technology taking servers and man-power to run. This is why USA-ONE offers its 3 prong product approach via a Enterprise Class SaaS service. With just a one week set-up:

•  Your ability to reduce your delivery time by three days can mean saving an additional 3 basis points in fees on the loan.
• To make the point, on a $5 million trade, which is about 27 loans on average, the interest savings can result in a $3,000.00 increase in profits. That savings times 12 months in the year – you are looking at approximately a 272% ROI. This does not include the additional number of times you can “turn” your warehouse line now that you can cut down on the time it takes to actually sell off your loans and reuse your line.

Here is a very basic equation for calculating the ROI: ROI = [(Payback - Investment)/Investment)]*100

Documents, Documents, Documents . . .

The processes associated with loan processing and Investor Delivery are very paper-intensive today.

For mortgage originators, the ambition of generating an Investor formatted package immediately available for submission is an enigma filled with inefficiencies and costs.

Inefficient processes

• Multiple copies made by the originator cause a confusion in itself, the average loan package has over 100 pages in it
• Difficult to safeguard the loan submission
• Approvals take at best 72 hours and then conditions are then sent
• Lots of handling and moving parts

Costs

• Overnight/courier charges for submission packages
• Lender handling, scanning, sorting and registering

For post-closing and archiving, the concerns related with the paper loan proliferate, as the Mortgage post closing/disbursement coordinator concentrates on producing a complete loan folder with Investor submission package consistency.

Inefficient processes

• Investor-specific sort (stacking) order
• Clearing document defects are time-consuming
• Dawdling off-site recovery from remote locations and closings

       
Costs

• Multiple copies and expensive shipping costs
• Expensive off-site storage
• Longer interest carry” on warehouse credit lines

The cost of creating and managing the paper loan folder can be well in excess of $150 per loan over the first two years of the life of the loan.

USA-ONE’s Investor Delivery System is designed from the ground up with the particular needs of the correspondent and wholesale lender in mind.

USA-ONE Investor Delivery packages are fully XML indexed if it is requested by the Investor. Deliveries conform to investor’s loan specifications facilitating immediate purchase review and eliminating delays associated with non-indexed or non-conforming deliveries.

Contact us today to learn how you can:

• Increase post closing and shipping productivity by 50% or more
• Trim down loan file suspensions
• Improve funding turn times by 30%-60%
• Enhance warehouse line management
• Reduce the hassle of multiple investor stacking orders and delivery processes

Contact us today via phone or email and we’ll gladly take you through an online demo:

USA-ONE Investor Delivery Department

investor@usa-one.com
or call us at 303-814-6088