That’s
where
mortgage
subservicers
come
in.
Subservicers
take
over
administrative
tasks,
leaving
you
and
your
organization
time
to
focus
on
client
relationships,
portfolio
building
and
long-term
organizational
growth.
Partnering
with
the
right
mortgage
subservicer
can
enhance
operational
effectiveness
while
reducing
expenses,
ensuring
regulatory

compliance
and
focusing
on
company-wide
expansion.

The
benefits
of
a
subservicer

Subservicers
are
crucial
to
cost-saving
by
handling
the
complex
and
costly
processes
of
loan
servicing.
By
outsourcing
operational
duties,
businesses
are
uniquely
positioned
to
reap
the
benefits
of
specialized
subservicers.

Improve
cost
and
time
efficiency.
Subservicers
can
reduce
overhead
costs
and
training
time
by
taking
responsibility
for
a
wide
range
of
tasks.
In-house
servicing
requires
significant
investments
in
staff,
technology,
and
training.
By
outsourcing
to
a
subservicer,
lenders
can
limit
their
expenditures
while
maintaining
service
quality.
These
savings
can
be
redirected
to
priorities
like
marketing
or
team
expansion,
fueling
long-term
growth.

Access
specialized
industry
expertise.
Subservicers
are
well-equipped
to
manage
loan
portfolios
and
navigate
the
complexities
of
loan
servicing.
From
overseeing

escrow
accounts
to
payment
processing,
subservicers
are
experts
in
providing
efficient
and
high-quality
experience.
Partnering
with
a
specialized
subservicer
ensures
that
loan
portfolios
are
managed
accurately
while
meeting
the
unique
needs
of
borrowers.

Ensure
compliance.
The
regulatory
landscape
is
constantly
evolving,
making
compliance
a
complex
task
for

lenders.
Subservicers
are
equipped
with
compliance
monitoring
tools
to
stay
ahead
of
these
changes,
ensuring
that
loan
servicing
complies
with
new
industry
standards.

Maximize
portfolio
with
flexibility
and
proficiency.
Subservicers
offer
flexibility
to
manage
shifting
loan
volumes,
ensuring
operations
remain
efficient
regardless
of
portfolio
size.
Subservicers
can
easily
scale
operations
to
accommodate
an
increase
or
decrease
in
loan
servicing
demand,
providing
lenders
with
the
flexibility
necessary
to
adapt
to
market
changes.
Inside
Mortgage
Finance
found
in
2021
that,
despite
a
severe
drop
in
origination
volume,
subservicing
volume
rose
to
$4.16
trillion.
Scalability
capacity
is
vital,
as
it
allows
lenders
to
focus
exclusively
on
growing
a
portfolio
without
having
to
expand
their
operation
team
simultaneously.

Gain
a
competitive
advantage.
As
subservicers
handle
day-to-day
tasks
in
managing
loans,
they
provide
lenders
with
access
to
programs
and
operations
that
may
not
otherwise
be
available
in-house.
They
use
sophisticated
platforms
with
real-time
reporting
and
analytics,
offering
lenders
a
technological
advantage.
By
leveraging
a
subservicer’s
technology,
lenders
can
provide
seamless
borrower
experience
without
having
to
invest
time
and
resources
into
a
system
of
their
own.

Asking
the
right
questions

When
deciding
on
a
subservicer
to
partner
with,
choosing
the
right
fit
is
essential
to
an
organization’s
long-term
vitality.
Lenders
considering
a
subservicer
collaboration
must
ensure
there
is
a
strong
cultural
alignment,
as
well
as
a
plan
for
growth
to
remain
competitive.
Lenders
should
consider
the
following
questions
when
selecting
a
subservicer:

• 
  Evaluate
  their
  industry
  experience.
  What
  is
  their
  track
  record?
  Do
  they
  have
  success
  in
  managing
  a
  diverse
  portfolio,
  as
  well
  as
  servicing
  the
  types
  of
  loans
  in
  your
  portfolio?
• 
  Assess
  technological
  capabilities.
  Do
  they
  leverage
  user-friendly
  technologies
  for
  both
  borrowers
  and
  lenders?
  Can
  they
  be
  integrated
  into
  your
  existing
  systems
  seamlessly?
• 
  Audit
  compliance
  support.
  What
  kind
  of
  experience
  does
  the
  subservicer
  have
  in
  monitoring
  regulations
  on
  the
  federal,
  state
  and
  local
  levels?
  Can
  they
  provide
  transparent
  reporting?
• 
  Understand
  their
  scalability.
  Do
  they
  have
  the
  infrastructure
  and
  capacity
  to
  meet
  the
  needs
  of
  your
  lenders
  and
  your
  borrowers?
  Can
  they
  adapt
  to
  the
  market
  conditions
  without
  sacrificing
  the
  quality
  of
  service?
• 
  Review
  customer
  service
  approach.
  What
  kind
  of
  customer
  service
  competencies
  does
  the
  subservicer
  offer?
  Do
  they
  provide
  performance
  metrics?

The
subservicer
advantage

Building
and
leveraging
partnerships
with
the
right
mortgage
subservicer
allows
lenders
to
streamline
their
operations,
reduce
costs,
and
stay
compliant
in
today’s
complex
regulatory
environment.
Lenders
seeking
to
optimize
their
strategies
and
maintain
a
competitive
edge
have
an
opportunity
to
benefit
from
a
partnership
with
a
specialized
subservicer.
These
collaborations
not
only
ensure
high-quality
service,
but
also
free
up
resources
for
core
business
growth.

Morgan
Wise
CPA
is
the
Chief
Financial
Officer
at
Atlantic
Bay
Mortgage
Group.This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece:



[email protected].