Special Report: Assignments, Releases & Title Services
For lenders, the last couple of years must feel like they've found the best fishing hole in the lake. They've been reeling in business at a record pace. But that has put a strain on the lien release department for most shops. Most of the loans being made are used to refinance an existing loan. That means for most loans boarded onto the servicing platform, some other loan is being paid off and has to be released.
The high portfolio turnover rate has also burdened lenders with heavy volume title searches and assignments. All together, the combined workload has forced some servicers that may have resisted outsourcing to take a second look.
Mortgage lending is a cyclical business, as everyone knows, and each aspect of mortgage servicing is cyclical. But a refinancing boom puts stress on just about every aspect of a lender's business - from loan origination right through lien releases.
These days, technology is helping lenders manage the ups and downs of the business workload better than ever before. And specialists who focus on lien release and title work are playing a more important role than ever in the industry. In many cases, they can do the work less expensively than a lender could do in house. They bring the expertise needed to keep track of the requirements of 3,700 counties nationwide, each of which has its own rules for recording of documents such as lien releases. And with stiff penalties for failing to record payoffs on a timely basis, lenders cannot afford to let payoff requests pile up.
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