Cost Benefits

 

Add 80% Back to Your Bottom Line With ATLOS

There are several factors that influence your overall cost of creating a paper loan file. The most obvious cost is the production of the file. You typically have costs for paper, folders, file fasteners, dividers, and toner. The average loan file is 250 pages, and is produced on legal paper. The average mortgage company spends around $13 dollars to create a single loan file.

Now let’s factor in the cost of storing a paper loan file within your office space. The average monthly cost per square foot of office space in the United States is roughly $15-20 dollars. A four drawer legal file cabinet has a footprint of roughly 2.6 square feet, and can store around 48 legal loan files. On the low end, that file cabinet in your office costs around $39 dollars per month. So to store a single loan file in that file cabinet is roughly 0.81 cents per month. The average mortgage company retains their loan files for 3 years (36 months) which means you will spend another $29 dollars to store that paper loan file (36 months x 0.81 cents per file).

Most ATLOS clients save an average of $37.00 per loan file that they produce electronically. For the average mortgage company that processes 10 mortgage loan files per month, the cost savings are nearly $4,500 per year.

Additional Benefits of Eliminating Paper Loan Files

ATLOS clients realize additional savings by eliminating the cost of purchasing file cabinets, the cost of purchasing or leasing printers and copiers, along with maintenance. Some mortgage companies may also incur offsite storage costs, shredding services costs, courier fees for shipping paper files, and duplicate copy fees.

What about costs associated with time spent searching for loans and documents. Suppose it takes an employee making $20 an hour ten minutes to walk to a records room, discover a specific document in a file cabinet, make a duplicate of the file, deliver the copy to the intended recipient, re-file the unique document and return to his or her desk. If this employee has to perform that function only six times a day, that’s an hour of lost productivity per day or about $5,200 dollars per year in wages.

What about the costs associated with the complete loss of your loan files in the event of a natural disaster? This could equate to hundreds to thousands of dollars in an attempt to restore your paper files, lost productivity, and potential fines.

Not only does ATLOS mitigate all of the risks mentioned above, it can also help mortgage companies and banks realize significant cost savings in the process.

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