How are Mortgage Lenders Saving Money on Facilities?
Mortgage lenders are finding multiple ways to cut costs and increase the amount of revenue that comes in. One of the ways they are doing so is by saving money on their facilities.
"Movement Mortgage, for example, got a $660,000 grant from Virginia's Economic Development Partnership to support its effort to lease and renovate space in a former J.C. Penney storefront for its operations," according to National Mortgage News.
"And Embrace Home Loans got a $330,000 state grant in Rhode Island to partially pay for the $1 million installation of rooftop solar panels that will provide energy cost savings over time."
That's not all lenders are resorting to. The amount of underwriters who work remotely has increased creating what the report calls "the virtual office concept."
With the virtual office concept, lenders would save on fixtures, furniture and equipment. Though, some lenders could be reluctant due to natural concerns over work productivity.
"We're not spending a lot on technology, even with all the digital solutions coming," said Stratmor Group Senior Partner Garth Graham, according to the report.
"Roughly 30% of lenders have some form of digital point of sale technology in production and another 30% have some form of it in production, but the remaining 40% of the industry doesn't."
Companies are looking towards innovative ways to cut back on spending and increase overall profits. With using a virtual office concept, paired with information technology that is relatively cheaper, companies can attain much higher numbers of revenue.
To learn more about these innovative options for mortgage lenders, click on the image above.