From smartphones and tablets to social networking, technology advances have happened so quickly and infiltrated the way we live so immensely, it’s hard to imagine not having these life-changing tools and services constantly at our fingertips.
So why don’t we embrace those changes as fervently everywhere in business?
When it comes to the mortgage industry in particular, why aren’t more residential and commercial servicers implementing the latest technology advances, many of which provide dramatic productivity efficiencies and lower the cost of servicing?
The answer is not hard to consider.
Many mortgage servicers (or servicing units) operate with limited staff, budget, and many do not have processes in place to support new initiatives.
Although the retail (origination) world—particularly before 2008—drove advances like automated credit scoring and underwriting, today far too many servicers still lack an automated servicing solution that coordinates and elevates the sourcing, preparing and recording of data and documents critical in maintaining each loan file.
Collecting and reviewing loan servicing files, documents and information is increasingly complex, inefficient and labor intensive. Beyond no two mortgages are exactly alike, there are disparate additional jurisdictional requirements and fees to consider and reconcile. And the lack of controls from templates in Word, numerous rejections, tracking thousands of checks or sourcing data for incomplete reports drains time and resources.
Certainly there has to be a better way. And there is.
By leveraging the Web-based technology and service expertise of a provider to offload ancillary workflows, integrate with legacy systems and create Web-based repositories of easy-to-access data and documents, those servicers who are embracing the "latest and greatest" solutions are reducing foreclosure backlogs, addressing compliance and transparency needs and most importantly, no longer fighting just to keep up with the paperwork.
They also offer the benefit of accessibility.
For example, there’s often a need to share or access documentation with other servicing units, special or subsubservicers and outside counsel. Today, fax, phone or even in-person meetings are the solutions of choice. Seem like progress?
Particularly technology/service hybrid model solution providers who speed and simplify post-close document management aren’t “in beta”—they’re here today. These (primarily) Web-enabled workflow tools will result in tremendous cost savings, reduced portfolio risk and improved quality control. Without heavy IT involvement or changing workflows.
Just like outside of the office, embracing the "latest and greatest" often does give an edge. With servicing, that edge is all about profitability, assessing portfolio value and maintaining a servicing center of excellence that internal and external regulators increasingly demand.
And unlike My Space, dial-up connections and Betamax, those solutions are advancing and won’t be going away anytime soon.
Michelle Rowley is mortgage servicing advisor for CT Lien Solutions, a lien search, recording services and life of loan service provider under Wolters Kluwer Corporate Legal Services.
