In today’s market, servicers are turning to technology as a means for simplifying operations across many lines of business.
While there is no shortage of technology available today, partnering with the wrong solution provider could spell disaster for an institution, and potentially jeopardize future business processes.
However, when a servicer is able to find the right technology provider, the results can significantly improve future business opportunities with greater operational efficiencies, lower costs, and enhanced product innovation.
In order to reap these benefits and establish a successful partnership, servicers should look to partner with technology vendors focused on three key components.
1. Constant Innovation
As new technologies and regulations are continually being introduced to the mortgage industry, servicers need to be well-equipped to handle those changes both quickly and efficiently. Servicers often look to the vendors they partner with for constant innovation; driving greater efficiency within the organization, and ensuring they remain up-to-date on the latest regulatory changes within the industry.
In addition, servicers also favor vendors whose innovations positively impact other areas of business, such as customer management through new technology offerings, or improved functionality among existing solutions. Getzville, N.Y.-based Largo Real Estate Advisors credits their current technology provider’s dedication to continual innovation as one of several major factors in their successful relationship. Jordan Mikula, vice president of loan administration, cites the solution’s wide range of functionality as a defining aspect of their success since implementing the technology.
“We not only benefit from the primary uses of the software in processing payments, security holder remittances, and generating reports, but additional functionality, such as the memo alerts, help our staff spend less time tracking down extra information needed to work with our customers.”
In the end, technology vendors will remain a good fit for servicers as long as its solutions continue to stay current and innovate to address any key movements within the industry before they become an issue. While not all changes in the industry will warrant a system change by a vendor, access to the tools and resources required to incorporate user-specific changes where possible allows the servicer to comply on their own timelines. As servicers have experienced, use of the tools and flexibility within a system to be able to implement changes to business practices, investor requirements, or regulatory changes, remains a source of significant value.
2. Superior Customer Service
Although continual innovation is a key factor in a successful vendor relationship, without a helpful team of experts available to support the user, the relationship could become a headache for a servicer.
In order to combat this issue, servicers should look to technology vendors offering a hands-on approach to customer communication, providing support from day one as well as throughout their relationship. Ideally, a solution provider will have multiple resources available to not only ensure customer questions are addressed in a timely manner, but also resolved with as little turn-around time as possible.
Houston-based Cornerstone Mortgage Co. cites service as a key reason that they have worked with their mortgage servicing software provider for over two decades. Vice president of loan servicing, Lisa Haynes, reports that every time her staff calls the support desk, a customer service representative helps them immediately.
“Our servicing software provider’s employees have proven to be very knowledgeable, courteous, and ready to work with us,” said Haynes. “The personalized level of service they provide shows us that they truly care about our success.”
Overall, vendors providing a clear line of communication for their customers, as well as premium support services whenever needed, will maintain substantial relationships much longer than those who do not.
3. Seamless Integration
Within a given financial institution, there can be multiple technology solutions in place to help manage operations for each individual division of the organization. In order for the institution to operate successfully, each department must be able to communicate and work together without issue.
For this reason, servicers seek technology offerings that can successfully integrate with all existing solutions, allowing for a simpler on-boarding process, sharing of information, and greater operational efficiency moving forward. For mortgage servicers, this not only eliminates duplicate data entry and associated errors during the on-boarding process, but broadens the access of data to other departments that are on the front lines assisting customers. The integration can also provide greater cost savings and an improved bottom line.
While price and solution capabilities should factor into a servicer’s decision to partner with a technology provider, these additional factors are equally important to consider prior to signing on the dotted line. By partnering with a vendor with more robust and proven areas of focus, such as continual innovation, superior customer service and seamless integration capabilities, servicers can more clearly define ROI, as well as ensure continued success far beyond the initial implementation.
Susan Graham is president and COO of Dallas-based Financial Industry Computer Systems Inc. For more information, visit
