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What Is an ASP?
The mortgage industry is ripe for a host of new outsourcing relationships. The need for increasingly sophisticated technology and personnel with deep expertise has pumped up demand for expert firms that do one function very well. While the application service provider (ASP) is not yet a household term, it could become one in the mortgage business.
AS THE COSTS OF ORIGINATING and servicing residential loans continue to rise, mortgage bankers and investors alike strive to retain profit margins. They have traditionally looked to their vendors to lower their prices or extend more services for the same fee. While that may sound like a winning formula, only those vendors who continually reinvent themselves to achieve a technological edge can succeed at that game. Such vendors can provide the required levels of support to the mortgage industry at prices that allow lenders and servicers to maintain acceptable levels of profitability. This is a striking example of the interdependence that exists in the mortgage industry, as well as the industry's current deep dependence on technological ...See the full content of this document
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