3 ways to tackle mortgage servicing pain points

It has not been easy for the mortgage servicing industry to recover and navigate the economic climate in the aftermath of the Great Recession. In addition to the surge of regulations and sky-rocketing operational costs, servicers now have to contend with the changing expectations of borrowers.

The best thing you can do is to take strategic steps that not only enhance the borrower experience, but also reduce operational costs. However, that can be difficult to do with so many challenges that stand in your way.

3 challenges

Let’s take a look at three pain points that dominate the mortgage servicing industry that you can solve with technology.

1. Manual and sluggish processes
Oftentimes, you receive large volumes of documents in a variety of formats and types to be manually sorted, which can be overwhelming. And, it doesn’t help when manual and sluggish processes lead to slower transaction times, which makes borrowers unhappy.

2. Tedious and time-consuming workloads
Your staff is often bogged down by tedious administrative tasks, resulting in data entry errors and duplications. In addition, having to bounce between various devices or logins while attending to borrowers’ queries can seriously affect job efficiency as well as your service reputation.

3. High compliance risks and fragmented account management
Labor-intensive verification processes often lead to high incidences of errors and incomplete loan packages due to missing or lost information during data transfer. And with more stringent regulations, this often results in financial penalties.

Manual processes also cause inefficiencies and can negatively impact of fragmented account management on borrowers.

3 solutions

Thanks to innovative mortgage lending solutions, you can now address these, and other, industry pain points.

This means streamlined processes, faster transaction times, better compliance and increased data accuracy. More importantly, with the right solution, you increase your ability to provide a positive borrower experience, reduce operational costs and increase growth opportunities.

Here’s how:

1. Capture, manage and use data intelligently
With intelligent capture technology, you separate, classify and extract the right data directly from documents. You draw key information from paper – as well as scanned documentation – in a fast and accurate manner, as the solution validates all data before sharing it with other systems.

Coupling this with advanced document management capabilities empowers you with almost instant access to documents, so you offer borrowers quicker, more knowledgeable service.

2. Apply automated workflow for higher productivity and efficiency
A robust mortgage lending solution will also include automated workflow capabilities. Workflow helps you streamline tasks and timelines, create digital checklists and automate validation processes to verify information as it is being imported into the database. Thus, ensuring minimal incidences of errors or duplications.

From sending payment reminder notifications to tying borrowers’ accounts to loss mitigation and loan management records, you enhance your service efficiency. Automating these processes frees resources, saves time and allows staff to focus on critical tasks like ensuring positive customer experiences and producing innovative products to attract new borrowers.

3. Provide a complete and compliant account management solution
Utilizing a solution that ensures compliance with today’s mortgage industry regulations is the icing on the cake. You no longer have to be plagued by worries whenever there is new information added to a loan account. The right solution completes and validates individual loan packages and larger loan bundles fast and efficiently, with features like electronic signatures, compliance checkers and automated validation processes.

Of course, the right solution will have the ability to extend beyond your immediate needs. Aside from intelligent capture, document management and workflow automation, advanced solutions with capabilities like case management tools also empower employees to manage cases efficiently with better problem solving and decision-making abilities.

3 ways to win

Leveraging mortgage loan processing software is the most effective way to:

  1. Improve relationships with borrowers
  2. Increase productivity in employees
  3. Create growth opportunities for your organization

This will not only help you solve the industry pain points referenced above, but also help you become better positioned as an industry leader.

For more information on how you can use technology to resolve major pain points in the mortgage servicing industry, download the eBook The tech revolution in mortgage servicing.

Steve Comer

Steve Comer

Steve Comer is Hyland's director of sales for financial services.

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