Mortgage loan originators are feeling some distress as volumes continue to fall and interest rates threaten to rise further. In contrast, mortgage servicing has become more attractive. According to the Mortgage Bankers Association, net income related to mortgage servicing has nearly doubled. We wrote about this recently in Coforge business process solutions article in MReport.
In the article, we go into some detail on a number of challenges mortgage servicers still face in this market. Dealing with these challenges effectively will separate the best servicers from the rest of the industry. In all, we covered 4 key challenges professionals working in this area face today:
- Continuing Compliance Pressure
- The Cost Reduction Challenge
- Finding the Right Partners
- Accessing the Best Technology
Each of these challenges will require management to carefully assess available options and, from our perspective, find suitable partners to help them meet their objectives. In our continuing discussions with mortgage servicers, we are finding a number of ways to support their efforts.
While these are hurdles that servicers must overcome this year, they should also be viewed as opportunities. Servicers are looking forward to having the breathing room to do the work of transforming their businesses, whether they are pursuing operational efficiency or zero tolerance full compliance.
When servicers really look at the businesses they are in today, and the environment they must operate in, it doesn’t make sense for them to spend their resources simply seeking the lowest friction, lowest CAPEX, and lowest OPEX in the hope of driving value. Instead, they should be focused on what really drives value in our business: compliance, quality, and customer service.
Find out more by reading our article in the July issue of MReport, or find accessing the article about the challenges servicers face in 2018 online. To know more about Coforge BPS and our mortgage solutions, reach us at https://www.coforge.com/bps/.
