Technology has changed dramatically over the past decade in the mortgage servicing news. When MSN was founded, one of the big debates in the industry was whether or not economies of scale could still be achieved when a portfolio of loans exceeded $100 billion in size. Now the top two servicers in the U.S. manage servicing rights on over $1 trillion of home loans each, and both are still growing.
A $100 billion portfolio isn't even enough to crack the top ten firms in terms of servicing size.
Back when MSN was founded, the big trend in technology was client-server architecture, as networks of linked computers were replacing giant mainframe machines. Now, we hear about Web-based technology, object oriented architecture and a host of newer ideas that are making servicing systems more efficient and helping servicing managers become more productive.
But while cost has long been the key factor driving the adoption of servicing technology, now lenders want more from their servicing systems. Increasingly, servicers want systems that will help them enhance the servicing revenue stream as well.
From maximizing float and escrow income to generating new cross-sell and ancillary income opportunities, lenders want a system that helps them mine their portfolio for value at every stage of the loan life cycle. That, more than anything, may help to drive technology decision-making going forward.
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