Special Report: Technology
When it comes to technology, many servicers must feel overwhelmed by the choices confronting them. From loan boarding to escrow analysis to cash management to investor reporting to default management and payoff administration, servicers rely on technology to make their shops more efficient than they could have imagined a decade ago. But the landscape keeps changing, and each evolution in technology presents a new quandary. Is now the right time to upgrade? Should we scrap a legacy system and migrate to something wholly new? Does a particular option pass cost-benefit scrutiny? Sometimes, it would be nice to just take a break and keep things as they are. But that's not what the competition is doing, and you can't afford to do it either if you want to stay on top of the game.
In today's challenging mortgage environment, lenders are particularly interested in systems that help them manage growing loan workout and modification workloads. Rising defaults always put a strain on servicers, and much of what makes default management effective requires plenty of human input. But systems that help assess a borrower's scenario and analyze likely outcomes for repayment plans, modifications, short sales and foreclosure all contribute to making the process smoother.
Another key concern for servicers is getting disparate systems to talk to each other. MISMO has gone a long way toward standardizing the industry's software systems, but we still exist in a world where systems often don't work together as well as they should. A key priority for the industry is reducing friction that requires re-entry of data or too many hands touching a loan file. The more we automate, the less we stumble. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/