The current environment in default servicing is complex. Frequent new regulatory and policy updates mean lenders and servicers of all sizes are struggling to keep up. Besides, growing customer expectations also pose unprecedented challenges for lenders and servicers alike. The large number of mortgage forbearances currently in place has added to the complexity.
Outperforming in this tough situation is a challenge for servicers. This means now is the time for them to engage with a servicing partner who can help navigate the difficult times with the help of the right people, technology, and processes. Servicers can achieve quite a lot of efficiencies and scale their operations by engaging with players who have deep expertise in the entire servicing value chain.
Here are a few areas in which servicers can benefit by approaching the right partner:
Technology and Automation
In the current mortgage landscape, servicers need to be nimble and agile to respond to borrower and investor demands. However, many of them rely on legacy software applications and IT infrastructure to run their core lending and servicing businesses. These systems that were once able to process high volumes are now costly to maintain and support, difficult to integrate with other applications, and unable to scale efficiently. When servicers operate with these applications, they continue to face problems such as difficulty in tracking data and customization in a constantly changing business environment.
As the residential lending space becomes increasingly competitive, it is important that servicers leverage leading-edge technology to help automate their workflows, optimize their workforce, and advance their digital transformation journey. A robust tech mechanism can go a long way in sorting through incoming requests and allocating them to relevant processors, based on the request. Also, time is of prime essence during this situation which means servicers benefit in the true sense if the technology solution can be onboarded fast.
Companies like Peoples Processing provide smart automation tools that offer improved compliance and ease of process management. Our support team covers all the back-office activities associated with default and loss mitigation. We implement strategic tools and process transformation to address the challenges that servicers face.
Strong Focus To Adhere to Compliance
Compliance in mortgage servicing is no more simply about holding current state licenses and registrations. It now demands a business-wide adoption of a compliance mindset and a paradigm shift towards regulation that encourages business compliance at every level. The Consumer Financial Protection Bureau (CFPB) has strict standards focused on process compliance which requires servicers to define and follow processes rigorously to eschew heavy penalties. Servicers are required to operate with a business framework that is centered around proper monitoring to demonstrate that their compliance management system (CMS) is consistent with actual business practices and is functioning effectively to meet all regulatory requirements.
At People’s Processing, we provide rigorous operations management and monitoring which will ensure compliance of processes with regulations. We help proactively monitor and identify risks. Along with expert loan servicing teams, we also have a robust platform for servicers that helps manage forbearance and other default-related requests with a high level of quality and consistency. Our solution rides on strong technology that tracks every request through to its logical closure as well as flags any compliance issues.
Increasing Operational Capacity
Now is the time when forward-thinking servicers will have to invest in people, processes, and technology to rapidly scale for spikes in defaults in order to meet demanding regulatory requirements, mitigate risk and preserve their reputations. Those that join hands with the right service partners can perform better. Regardless of default volumes, service partners have the experienced staff required that lets servicers easily scale up or down to meet their loan servicing needs.
As a large and scalable outsourced service provider, Peoples Processing offers both core and default servicing process support. This helps servicers to release capacity and acquire incremental work. We act as flexible partners who can scale operations within short timelines and we are equipped with over two decades of experience in handling servicing requirements. With our industry-leading servicing profile and customizable process models, we are also uniquely positioned to help servicers of all sizes transform and scale their operations.
Access to Domain Experts
The mortgage industry is prone to volatility in terms of volumes. Most servicers look to staff optimally and handle this variation without increasing the fixed costs proportionally. It helps to have access to proficient teams who are domain experts and who understand the mortgage industry really well.
At People’s Processing, we have deep domain expertise in mortgage services which comes from our decades of experience in delivering end-to-end default services to our clients. We have industry experts who possess experience across multiple mortgage default servicing scenarios and who ensure rigorous quality and governance through a milestone-based examination of mortgage loan servicing activities.
With its industry-leading servicing profile and customizable process models, Peoples Processing is uniquely positioned to help servicers of all sizes transform and scale their mortgage loan servicing operations. Our robust default mortgage servicing solutions combined with technology-based tools are designed to reduce costs and deliver exceptional customer experiences. To know more about our default processing services, get in touch with us at https://peoplesprocessing.com/streamlining-mortgage-default-servicing/