BSI Starts Subservicing
Mortgage subservicing is traditionally a business dominated by a handful of well-established firms, but now one off-shoring entrepreneur sees an opportunity to make inroads into the market with a new entrant.
BSI Financial Services, a mortgage originator and approved servicer, has decided to refocus its business on mortgage outsourcing and subservicing under the leadership of new owner Gagan Sharma, who purchased the firm from an Indiana community bank. Mr. Sharma, who previously was a founder of an outsource provider based in India, believes that a spectrum of mortgage services lend themselves to his vision of outsourcing, which will rely on both domestic and international support sites.
As a service provider, BSI plans to focus on subservicing, due diligence, quality control and back-office outsourcing services to the U.S. residential mortgage industry.
The company will provide domestic operations based in Pennsylvania coupled with offshore operations in India. BSI has already signed up clients, including Investor Savings Bank, Atlantic Pacific Mortgage and Allied Mortgage Group.
Mr. Sharma, a veteran of the global outsourcing business, has purchased BSI and taken the position of President and CEO. Prior to buying BSI, Mr. Sharma was founder, CEO and vice president of sales at a global business process outsourcing company.
Mr. Sharma told MSN he's excited to be leading the company in a new direction. He said BSI combines the best of a domestic outsourcing operation with a global delivery center that will expand access to international outsourcing with minimal risk.
"The smaller guys have a harder time going offshore on their own. We can help those small to midsized bankers," Mr. Sharma said.
He said that BSI has "unbundled" the subservicing component, allowing clients to outsource components of loan servicing while keeping other functions in their own control.
And Mr. Sharma views subservicing as just part of a range of outsource services that a lender may need. BSI is also focusing on quality control and due diligence services. Additional scanning and shipping services may be added as well.
"We view these as operational activities and we see them as a continuum once the loan has closed," he said.
BSI Financial Services has a 20-year record in the industry. Currently, the firm has about 20 employees, with corporate headquarters in Texas and an operational site in Pennsylvania in addition to a presence in India. Mr. Sharma said clients can choose which functions to outsource overseas for cost advantages and which functions they want performed at the U.S. site.
The company is an approved servicer with Fannie Mae, Freddie Mac, Ginnie Mae, HUD, VA, Federal Home Loan Banks and several private investors. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com