What should lenders look for in service solutions?
With interest rates rising and margins compressed, many lenders are looking
their maintenance business to increase sales. However, work out with borrowers
Forbearance programs add another layer to an already complex process that
could increase costs. Rental companies who want to thread the needle between them
Different interests of borrowers, investors and regulators need to be smart and efficient
Mortgage software solutions to meet their maintenance goals.
New investor guidelines
Borrowers exiting forbearance plans have a number of options, all of which are required
Service providers a seamless, flexible process for communicating and placing borrowers
in appropriate training plans. At the same time, these options trigger specifically
additional investor requirements, including reporting of principal and interest
Collection activities, underwriting funds due to the investor, handling reports or
Creation of discrepancies and reconciliation of custody accounts.
To complicate matters further, the two largest investors – Fannie Mae
and Freddie Mac — continue to adjust their policies amid the unpredictable
nature of the global pandemic. And the stakes are high. The regulator is finished
some of the flexibilities they have introduced and have introduced during the pandemic
Service providers note that they will look at how to deal with their dual
Responsibility to borrowers and investors.
In this environment, lenders need mortgage management software that appropriately automates operations from payment processing to investor reporting
To increase maintenance efficiency, choose mortgage maintenance software that:
Automates maintenance operations
Automation is essential for an efficient service. According to Craig Martin, a mortgage
Practice Director at JD Power and Associates, “More interaction with clients
Being more efficient – and more effective – can reduce costs and increase profits for service providers
regardless of business model, with the added bonus of improvement
Servicers can interact with borrowers more efficiently by automating payment processing, escrow management, and other service tasks with cutting-edge technology
Mortgage servicing software and APIs that enable scheduling of recurring tasks. this
allows service providers to provide accurate information quickly and gives them more time
to respond promptly to the individual needs of borrowers.
Also leading mortgage administration software that integrates with systems
such as the lending system (LOS) and the core system of a financial institution
allows lenders to sell loans to the government sponsored enterprises (GSEs).
maintain maintenance. The in-house service generates service fee income, offers comprehensive
opportunities to sell and allows lenders to provide better and more personalized offers
For nearly four decades, FICS has been delivering state-of-the-art mortgages
Maintenance software that meets the needs of service providers, investors and borrowers.
Mortgage Administration Software by FICS—Mortgage Servicer and Commercial Servicer—
automates maintenance operations, improves efficiency and borrower experience.
Mortgage Servicer, our home maintenance software, simplifies payment
allows greater flexibility in escrow management and facilitates follow-up
and preparing reports and accounts for investors in the secondary market.
Commercial Servicer provides full automation and seamless data flow for
Management of complex structured loans such as commercial real estate, apartment buildings,
equipment and building loans. The flexible commercial maintenance software
provides comprehensive accounting and investor reporting, trusteeship and
more to simplify the complexity of commercial maintenance.
Includes web applications
According to John Cabell, financial services practice lead at JD Power, “The
The mortgage market is changing rapidly, with traditional players and new digital ones
domestic market players are expanding their digital and mobile offerings.” In today’s digital age
Borrowers – particularly millennials – expect the mortgage process to be quick, easy and
and transparent. Accordingly, mobile or online services are important for borrowers
when accessing credit information or making mortgage payments.
According to the JD Power 2021 US Primary Mortgage Servicer Satisfaction Study,
Only 38 percent of customers said they found the information they wanted on theirs
Servicer website on the first two pages. Overall happiness dropped by 55
Points where customers had to visit more than two pages. Customers who have specified
They would switch lenders if given the opportunity, gave these main reasons (in
in addition to better rates): “better/improved customer service” and “easier access to
helps me get information about my loan.”
Web applications provide convenient, paperless access to mortgage information.
Using web application APIs to integrate mortgage services with a financial administration
Home banking or the institution’s mobile application expands the services provided
available to borrowers, providing convenient access to their mortgage loan while they
also engage in other credit or deposit products and assist in the promotion of a
Provision of mortgage information, bank statements and payment options
The servicer’s website increases efficiency for borrowers and servicers. A good
Marketing campaign can significantly discourage borrowers from approaching employees directly
for simple requests for convenient 24/7 online access to this information.
In addition, borrowers should be encouraged to refuse to receive paper statements
reduces service providers’ costs associated with postage, printing supplies and equipment and
employee time. We’ve all seen costs escalate due to the pandemic, so take this
easy step can further reduce expenses. Also, the use of mortgage management software
and web applications to implement paperless service add to the appeal
environmentally conscious borrowers.
Web app based account notifications are an underutilized way to deliver exceptional performance
customer service and promote borrower satisfaction. Account notifications can also be used to encourage borrowers to adopt web applications and be more active.
According to a survey, it’s safe to receive account notifications via SMS
Messages on the service provider’s website or email have been associated with high customer numbers
FICS’ web applications, eStatus Connect and LoanStat, provide borrowers with 24/7 online access
Access their loan information and allow them to make online payments. These
Web applications also allow service providers to send customized email messages to borrowers,
such as the encouragement to refuse to receive paper statements.
Application programming interfaces (APIs) streamline and automate the mortgage
Processes for lenders and borrowers from origination to funding, then expand
this efficiency in the maintenance for
APIs save time and reduce errors by providing and giving more accurate information
service providers more time to respond to the individual needs of borrowers.
Used with a planning tool, the Mortgage Servicer API, and the Commercial Servicer API
service providers to plan and automate system programs, reports (e.g.
end of day and end of month) and interfaces, eliminating rework.
Mortgage management software that automates maintenance operations and spans the Internet
Applications and APIs increases efficiency, saves time and money and improves
the borrower’s experience. Learn more about FICS software at www.fics.com.