A Model for Efficient Mortgage Servicing

After nearly a decade of Herculean efforts and difficult decisions, mortgage servicing leaders are reaping their reward: another round of hard decisions. This time the battle is for efficiency.

On the one hand, it is clear that the industry cannot afford to support the servicing model it put in place to respond to the financial crisis. On the other hand, almost no one likes the idea of cutting back processes, standards, and controls—basically re-creating the dangerous status quo of 2007. What is a servicer supposed to do?

In A Model for Efficient Mortgage Servicing we explore how to reduce servicing expenses without jeopardizing stability. The journey begins with the development of a cost fact base that allows servicing leaders to tackle their largest cost types—workforce and technology—and improve their performance in critical servicing activities that tend to be cost hot spots—quality assurance and customer service. The payoff for servicers? A sustainable model for mortgage servicing that frees resources for other investments including origination growth.

A Model for Efficient Mortgage Servicing