Achieve efficiencies in mortgage servicing with the right partnership
It's really an opportune time for discussing US Mortgage Servicing Industry as we participate in the Servicer's conference by Mortgage Banker's Association from 17th to 20th February 2014. As an operations service provider, I believe servicers and banks can achieve quite a lot of efficiencies by engaging in a partnership with players like us with deep expertise in the entire servicing value chain. Some of the key trends and how servicers can leverage an outsourced service provider like Infosys effectively are shared herewith:
A) Basel III norms suggesting caps for MSRs as a percentage of common equity to 10% from existing 50% seen Banks offloading MSRs to servicers. As Servicers are acquiring MSRs in the markets, they look at increasing operational capacity: As a large and scalable outsourced service provider, Infosys can perform both core and default servicing process value chain thru its onshore and offshore delivery centers. This helps servicers to release capacity and acquire incremental work. With us, you will find a flexible partner who can scale operations within short-timelines & at the same time bring the necessary experience of handling servicing requirements for about 2 decades.
B) Strong focus on Compliance:
- CFPB: Redefining Servicing standards effective from this year focused on process compliance, defined norms of communications and transparency in dealing with the customers. This requires servicers to define and follow process rigorously. 3rd party service provider like us can provide rigorous operations management and monitoring which will ensure compliance of processes with regulations.
- OCC Consent Order: Setting overall guidance & baseline for default servicing and foreclosure processes specifically under broad themes of Foreclosure compliance, dual tracking mechanism, affidavit and notarization, document custody and retrieval mechanism, legal compliance and 3rd party vendor management. This invigorates appropriate tracking of data, documents and process compliance. As an operational partner Infosys can help to consultatively baseline the processes and metrics that are compliant with regulations.
C) Technology & Automation: Servicers continue to operate with legacy applications and they continue to face the problems such as difficulty of tracking data and difficulty of customization in constantly changing business environment. We provide tools of smart automation which provides improved compliance and ease of process management for the servicers.
At Infosys BPO, we have 2000+ Mortgage processors working with various Banks and Servicers helping to transform their processes by cost arbitrage and significant productivity gains. We look forward to interact with servicers and understand some of their challenges to provide and evolve our solutions in this space further.