Why Outsourcing Contract Processing is a Game-Changer for Mortgage Lenders in 2026
As we kick off 2026, the mortgage industry shows signs of modest recovery. According to the Mortgage Bankers Association (MBA), single-family origination volume is projected to reach $2.2 trillion this year, up from 2025 levels, with purchase originations driving much of the growth amid stabilizing interest rates around 6.3-6.5%. However, challenges persist: origination costs remain elevated at approximately $11,000-$12,000 per loan, affordability constraints limit first-time buyer activity, and regulatory compliance demands continue to intensify. In this environment, outsourcing back-office functions—especially contract processing—has become a strategic imperative for lenders seeking to control costs, improve efficiency, and maintain competitiveness without sacrificing quality.
The Power of Contract Processing/Outsourcing Contract processing is the backbone of mortgage origination, involving document collection, verification, appraisal coordination, title work, and pre-underwriting preparation. It's labor-intensive and prone to bottlenecks, yet critical for fast turn times and high pull-through rates. Outsourcing this function allows lenders to:
Reduce Costs Significantly: Convert fixed staffing expenses to variable costs, potentially saving 30-50% on processing overhead.
Scale Effortlessly: Handle volume fluctuations without the delays of hiring or layoffs.
Accelerate Turn Times: Leverage specialized teams for quicker, more accurate file preparation.
Enhance Compliance and Accuracy: Minimize errors and rework in a highly regulated landscape.
But not all outsourcing is created equal. While offshoring offers deeper cost cuts, many lenders are prioritizing US-based partners for superior quality, security, and alignment. Why The Commonwealth Group Stands Out: Key Differentiators in a Crowded Market At The Commonwealth Group, we differentiate ourselves through a commitment to excellence that goes beyond cost savings:
100% US-Based Workforce – No Offshoring: All operations are handled domestically, ensuring better communication, cultural alignment, data security, and compliance with US privacy laws. This reduces risks associated with offshore models, such as time zone differences, language barriers, or geopolitical concerns, while delivering higher accuracy and borrower satisfaction.
Dedicated Staff: Unlike shared resource models, our clients benefit from assigned teams focused exclusively on their loans, fostering consistency, accountability, and deeper partnership.
Small Company Mindset: We maintain agility, personalized service, and quick decision-making—traits often lost in larger providers—while delivering enterprise-level expertise.
Deep Experience in Consulting and Compliance: Backed by years of industry consulting, our team brings proactive insights into regulatory changes, best practices, and risk mitigation, helping
For more information on our services and how we can help your company to excel, contact Martin Luplow (The Commonwealth Group) or Nick De Santis (CondoAnalytics) at [email protected].
Martin Luplow
Sales Director
The Commonwealth Group Companies