Lenders and servicers continue to shift critical functions to third party service providers in order to lower costs and focus on core competencies. However, effectively managing third party service providers can be very challenging from a compliance, operational and technological perspective. While this has always been the case, it is about to become more important as federal regulators have indicated that they are going to increase their supervision of service providers.
While claims handling is often a small piece of the insurance partner selection process for servicers, the insurance partner’s performance of their obligations under the insurance policy is a direct reflection on the servicer and their relationship with the homeowner.
The mortgage market is transforming at breakneck pace, with bank and nonbank mortgage lenders investing heavily in digitizing their process, improving the customer experience, and speeding time to close.