Having been a journalist focusing on technology for so long, I always think of it first when the goal is to streamline operations. But increasingly, lenders are finding that the right outsourcer can be a great solution that requires a much lower investment.
A case in point can be found in St. Louis-based TALX, a provider of payroll-related and human resources services. The company provides automated employment and income verification via The Work Number and unemployment tax management via its UC eXpress.
The company recently reported 54 percent growth in third-quarter earnings from continuing operations to $7.4 million from the year-ago $4.8 million.
Revenues from The Work Number, an employment verification service used by many lenders during the origination process, rose 41 percent, and revenues for the tax management services business increased 27 percent from year-ago levels.
VOE/VOI may be a small part of the mortgage transaction, but many lenders are finding it expedient to outsource it and TALX is finding it profitable to do it.
We recently spoke with Steve Kropper, a consultant for Equinox, for our Executive Podcasts program. He told us how lenders intent on outsourcing are starting small, sending out non-mission-critical processes before delving deeper into outsourced solutions. TALX is one company that has capitalized on that trend.