How the Right Technology Can Lower Servicing Costs
Indeed, most servicing technologies actually do help reduce costs. However, they vary enormously in terms of capabilities and features, which inevitably impacts ROI. If you’re looking to maximize cost savings, your servicing platform absolutely must have the features outlined below.
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It Must Be Customizable
All mortgage servicers generally do the same thing, yet every servicer has different business needs depending on the type of loans they service and where they do business.
For instance, every state has different rules and regulations affecting servicers, including rules about how to communicate with borrowers, how a borrower’s personal information can be used, and rules about fees, forced-place insurance, collections, and foreclosure processes. A servicer’s portfolio also has a major impact on costs, as servicing adjustable-rate mortgages, DSCR loans and non-QM products are inherently different than servicing the typical conforming loan.
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This means servicers need technology that can be easily customized to meet their unique business requirements and their future needs, too. Unfortunately, the vast majority of mortgage servicing software are one-size-fits-all solutions. In other words, none of them actually fit, and servicers have to spend extra to cover their shortcomings.
It Must Have Robust Self-Service Capabilities
Call centers are by far one of a servicer’s largest expenses, which is why most servicers now offer online help to borrowers through websites and customer portals. In fact, according to a recent Fannie Mae Mortgage Lender Sentiment Survey, 62% of servicers said such tools helped them reduce call center volume.
A borrower at home logs into her mortgage company’s online borrower portal to set up a recurring mortgage payment.However, not all mortgage servicing platforms provide all the self-service options borrowers need. Self-service is more than just letting borrowers make payments and request assistance online. They should also allow borrowers to upload documents, track the status of their request and communicate with customer representatives online through secure messaging.
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These capabilities will be essential in the months and years ahead. With forbearance plans and federal moratoriums ending and higher rates and inflation slowing the pace of home prices, most servicers are bracing for a steady increase in defaults. As organizations shift their focus to keeping people in their homes, they are going to need self-service technology that provides both their customers and their call centers with relief.
It Must Be Simple
One of our core philosophies at MCC Mortgage Solutions is simplicity, which is why we never stop improving and enhancing our solutions to make them as easy to implement and use as possible.
Related: How Borrower Communication Preferences Are Evolving
In the past, it was impossible for servicers to leverage software unless they had it installed on their premises. This is no longer the case. These days, a servicing platform like ours can be hosted on the cloud and equipped with government-level security. It can also enable a wide breadth of internal controls to ensure data integrity yet require very little input coding—which helps keeps a service’s IT costs and staff resources to a minimum.
Related: Is Your Servicing Technology Hacker-Proof?
Of course, there are other factors that factor into how well technology can help servicers save money, such as a servicing platform’s pricing structure. Solutions that are paid for on a per-loan basis make it much easier to manage costs while providing excellent scalability. Customer service plays a role, too. When you reach out with a question or need assistance, your technology vendor should always be available.
Learn more about MCC’s servicing functionality here.
If you’d like to learn how MCC Mortgage Solutions can help you lower the costs of your servicing business, give us a ring at 248-350-9290 or email us at info@mccmortgagesolutions.com.