About lender
Paradigm Quest is a Business Process Outsourcing company serving Canadian homeowners and the Canadian mortgage industry. Founded in 2004, the company has provided lenders with cost-effective mortgage solutions for 18 years. Today, Paradigm Quest delivers services for 17 mortgage brands and manages more than $25 billion in residential mortgages in Canada. The annual amount of mortgages underwritten by Paradigm Quest exceeds $10 Billion.
The services provided by Paradigm Quest include outsourced adjudication, advancing/closing, and servicing and reporting of residential mortgages on behalf of lenders. The company offers the following products and solutions:
Fixed and adjustable-rate mortgage terms
50/50 mortgage product
Home equity line of credit
No frills mortgage
Private label brands for mortgage originators
Outbound/inbound call center services for any industry
Collection services for any financial institution
Paradigm Quest claims to be a leader in business process outsourcing within the Canadian Financial Services sector. As stated on the website, Paradigm’s top priorities include:
Providing lenders with cost-effective mortgage solutions that are in line with market conditions
Leading the financial market in innovation
Improving the mortgage experience of the customers by offering a greater choice of solutions
Features
Paradigm Quest is the company to whom lenders delegate handling mortgage servicing and operation solutions. It is the first Canadian pure BPO dedicated to mortgages.
Paradigm has created service-oriented operations teams within its Operations Department to ensure a superior level of customer service. These teams provide dedicated client relationship management and, according to the website, ensure the best turnaround times in the industry.
In 2011, Paradigm Quest launched a customized end-to-end processing system called Revolutionary Universal Business Innovator (RUBI). To address the business needs of their clients, Paradigm Quest delivers automated and instant pre-approval turnarounds with RUBI. The company makes improvements to the system where necessary based on constant analysis of vast amounts of data. As stated on the website, Paradigm’s brand and mortgage broker partners are getting a more consistent level of service with RUBI. Besides, RUBI has great delicensing opportunities in Canada.
Pros and cons
For financial institutions, outsourcing activities (such as mortgage servicing and operation solutions) can benefit from cost reduction and service quality improvement. Here are the advantages of partnering with Paradigm Quest for lenders.
Pros
Cost-effective mortgage operating solutions for any lending organization in any industry.
Risk management procedures are designed to ensure business functionality in the event of a failure.
Service-oriented operations teams provide dedicated client relationship management.
A high-tech integrated lender underwriting and servicing platform already highly rated by Paradigm’s partners.
An opportunity to outsource not only mortgage operating solutions but also other activities – such as call center and collections services.
As for advantages for homeowners, Canadian families get access to various mortgage solutions tailored to meet their needs.
Cons
Homeowners, though, need to check loan conditions with the lenders carefully to ensure they are in line with their needs.
For lenders, there are no apparent disadvantages as such.
Loan conditions
Paradigm Quest offers both fixed-rate and adjustable-rate mortgages.
With Paradigm's 50/50 mortgage product, borrowers can take 50% of the mortgage at a 5-year fixed rate and the rest 50% — at a 5-year adjustable rate. In addition, there is an option to lock the adjustable rate to a fixed rate at any time for the rest of the mortgage term.
For borrowers looking for more significant amounts, Paradigm Quest offers a home equity line of credit (HELOC). With a HELOC, your home serves as collateral for your line of credit.
Borrowers searching for lower interest rates without the extra features in the mortgage product can apply for a no-frills mortgage. With this type of mortgage, you can count on a 5-year fixed-rate term with reduced cost. However, while you benefit from a lower interest rate, beware of the potentially limited prepayment privileges and penalties for early payoff.
Methods of loan funding
Paradigm Quest doesn’t provide any information on the loan funding methods on the website. However, since they are a BPO company, you can check this information with the lenders that Paradigm partners with.
