Summary
Mortgage servicers - Cover Story
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Extract
Surviving '98 as a small servicer.
Medium-sized and smaller servicers often seek to operate contrary to conventional wisdom. Finding overlooked pockets of opportunity - especially if they are too small to be invaded by large firms - enables experienced mortgage bankers to create valuable companies. By adhering to their unique business plan, they in effect are not directly competing with others in the business. They are visionaries and opportunists, and so their success would be difficult for another firm to copy. Operating in a way that makes sense for them, rather than comparing themselves with larger firms, helps the servicers profiled here to respond to all kinds of market conditions.
Yet they still must find a way to deliver as much value as national companies do. Experience and knowledge of the local market become at least as important as capital to such mortgage servicing firms. Servicing portfolios at small- and medium-sized mortgage firms typically reflect the companies' histories and their regions' changes. Although their managers use automation and keep a close watch on the bottom line, they don't talk much about concepts such as "employees per loan." Each firm has its quirks: For example, one subservices reverse mortgages on a proprietary software system, while another avoids jumbos because its investors do...See the full content of this document
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