The other element that urgently needs updating, Mobraten said, is how these servicing systems handle data.
“Those [servicers] who have the market share, [have] very antiquated, longtime systems that are what we call very flat, meaning they hold a ton of data and they’re very secure. They have great reporting generators but they have no workflow, they have no automation,” Mobraten said.
The end result: a loan gets shunted from one department to another, fragmenting how data is gathered in the application process. That, he said, has “helped create an opportunity for to reduce the fragmentation of processes around servicing and consolidate them into something cleaner and more efficient.
There’s also a corresponding push to streamline an area called “exception management” – when a loan or mortgage process gets stymied by delinquent payments or other snafus and a hoped-for linear process becomes more difficult.
“We want to give them the empowerment to manage and flow the processes they deal with,” Mobraten added.