Minimizing Your Exposure to Mortgage Servicing Risk

In the September 2013 issue of "Servicing Management" magazine, an article was posted called; "Decreasing The Cost Of Servicing Timelines With Technology" by Chris Michaels
The "opening line" for this article states; "Servicers that haven't deployed technology to speed the servicing pipeline are at greater risk for losses and non-compliance."
When I read this article, I was intrigued. It touched on the messages I have been voicing to prospects for years. While Chris Michaels was writing this from a default perspective.  I look at it from an overall "savings from technology" perspective.  Todays servicers must have flexibility in personal deployment and the processes they follow must be compliant. "Everything a servicer does and every decision that it makes can be open to scrutiny", Chris mentions in his article.
While I agree with the need to have a complete software suite, I am taking the liberity to interpret the message as; "a servicer needs to consider the whole mortgage platform as well.

• Can the software be safely and quickly deployed?
• Is the user applying the software updates quickly to ensure compliance?
• Is the system (software and equipment infrastructure) compliant with current banking regulations?
• Is your mortgage department ready for an audit?  Is your mortgage technology testing and certifications current?
• Consider the entire servicing process from origination through servicing, Including feeding the core system.  Interfaces can provide solid data flow through these unique systems.  Eliminate hand-keying mistakes and speeding up the loan process.
• Are all of your control points in place and actively managed.  Is the system environment and client data safe from others?
• Does the entire system work together? or are you still using excel to complete the process.

The ABT Team