Summary
Mortgage banks - Cover Report: Servicing
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Extract
A brand new model.
Old ways and tired concepts need to be tossed out if servicers are to make breakthroughs in productivity and customer service. Outdated models of how the business is done must be traded in for new ones that open up new opportunities.
The mortgage industry is in the midst of considerable change. Consolidations, strategic alliances, technology, heightened customer expectations and awareness, alternative business sources and new ownership structure are driving the new industry dynamics. Beyond that, rising interest rates and a resulting production slowdown are accelerating the change. To survive in this environment and find sustained profitability requires finding new and different approaches to doing business. And these innovative approaches will have to be deployed simultaneously through all aspects of the mortgage business. This article explores strategies for enhanced profit and success in the business of mortgage servicing. There are three distinct facets of mortgage servicing: * Servicing management - the transactional, operational and task-management aspects of servicing; * Asset management - both servicing assets (for mortgage bankers) and portfolio assets (for portfolio lenders); and * Revenue enhancement and management. To increase profitability and future viability, mortgage servicers must employ strategic thinking and tactical execution in all three of these areas. Servicing management Mortgage servicing is characterized by a variety of attributes including its service-intensity, volume processing (with the resulting economies of scale), external deadlines, predictable - but uneven - work...See the full content of this document
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