Today’s constantly changing economic landscape has the mortgage industry on pins and needles. As the industry faces regulatory changes, higher delinquency rates, and generally longer timelines, finding a qualified servicing partner to navigate and stay ahead of updates is essential.
“As with any business, our industry strives to drive revenue, mitigate risk and reduce costs,” says Eric Murphy, Senior Vice President, ServiceLink Servicing Valuations and Process Solutions. “The mortgage business is even more complex because of all the regulations, the increasing movement of portfolios, and the potential losses incurred if key milestones are not hit. Given the rise in defaults, we believe the best way to help our clients is to help drive down their expenses to maximize their margins.”
As the mortgage industry continues to ride the rollercoaster, these three trends emerge for servicers who are looking to reduce cost and risk.
Proactively Managing Loss Mitigation
As default numbers rise, loss mitigation is crucial. Mortgage servicers must proactively try different loss mitigation approaches to avoid foreclosures and keep borrowers in their homes.
“We pride ourselves on leaving no stone unturned when it comes to default,” says Amy Daniel, Senior Vice President, Title & Close for ServiceLink. “Using our entire suite of products, we do everything we can to help our clients and their borrowers find the best solution for everyone. We provide a variety of loss mitigation services including loan modification title and document generation, short sale title and deed-in lieu-fulfillment services. With our expertise in this space, we can help make a very stressful situation as seamless as possible for borrowers.”
Leveraging Technology to Manage Default Complexities
Technology is nothing new to the mortgage industry, but today automation takes on greater importance as a means to efficiently manage default complexities. The right technology partner can also bring greater transparency and help to scale to meet the business that’s coming in the door.
“Technology is key to staying ahead at this time of uncertainty,” says Steve Crocker, Senior Vice President, Pre-foreclosure Title Services and Loan Modification Solutions for ServiceLink. “Our partners want to help their customers get through the process as smoothly as possible. There have been a lot of moving parts over the course of the last several years, following all of the investor and statutory guidelines that continue to change and adapt to the market, particularly in the loan modification area. We asked them how we can help, and we’ve continued filling in the gaps with our technological solutions where they need support. Solutions for title impediments, fully customized document generation packages, borrower outreach and document execution solutions that include both Remote Online Notarization (RON) and traditional signing services, plus recordation services, can make workflows and closings virtually effortless.”
Maintaining Compliance Through Regulatory Updates
In 2023 regulatory changes are expected to continue and could directly impact risk management. Falling out of compliance is an expensive error that can be avoided through a partnership with a vendor who has a solid pulse on the industry.
“We are thinking outside the box for our clients,” says Eva Marin-Tapia, Senior Vice President of ServiceLink Auction. “It’s not only ensuring that all of their processes are compliant and within statutory guidelines, but also understanding how we can save them costs since assets are sitting a lot longer in their pipeline. Our full suite of default services helps to address whatever may come up. Our integrated services help us maintain quick turn times for our clients.”
Investing in the right technology and rising to the challenge of regulatory changes all while delivering exceptional service to borrowers is the key to keeping costs down while pushing through this time of uncertainty. Solid partnerships that can deliver on these critical needs ensure success in the industry.