GMAC Pioneers DSU
When GMAC Mortgage finishes implementing its Debt Servicing Utility project, it will be the industry's leading model, claims Tony Renzi, the executive vice president of servicing for GMAC. DSU is a single platform on which GMAC can service all types of loans from all brands.
Moving all of GMAC's servicing capabilities into DSU, said Mr. Renzi in a recent interview with Mortgage Servicing News, will be the largest ever conversion of servicing records onto a single platform. In all, three million records will be put onto the DSU platform, with everything from first mortgages to home equity lines of credit.
Still, he believes that the actual conversion will be a little anti-climactic. "Organizationally, we're already there," said Mr. Renzi. "We may be using different platforms, but the way we're structured, it's like a DSU."
With the framework already in place, the technology switch will not cause a big shock to GMAC's business. The final stages of the conversion will happen in two phases. GMAC will migrate mortgages and subprime loans, consisting of 75% of the portfolio, to the DSU platform by year's end, and home equity and consumer loans will be added by April 1, 2004.
But the project's earlier stages, in which GMAC has positioned its management to work with a DSU platform, has been the center of the transformation, according to Mr. Renzi. He describes the shift as one away from the traditional product-centric operational structure, where a servicer gains expertise in a certain type of loans. Currently, servicers may pick one type of loan and focus on being the expert in servicing that type of loan. There are limitations to this model, according to Mr. Renzi. For a companythat wants to service several types of loans, it is necessary to construct several parallel servicing operations, one dealing with, say, consumer loans, another with home equity, and still another with first lien mortgages. Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.mortgageservicingnews.com