Challenges of the mortgage servicing landscape continue to evolve into a borrower-focused experience. While borrowers have always been at the center of loan servicing, it is critical to ensure you’re doing everything you can to retain your customers.
All lenders and servicers alike should consider loan servicing from a playbook perspective. Servicing loans is more than simply retaining your portfolio and collecting payments according to a predefined schedule. It’s now about delivering an improved borrower experience to meet the evolving needs of your customers. The customer journey now requires multiple plays to be successful and it’s important to leverage evolving technology to achieve your loan servicing goals.
Here are three plays from the modern mortgage servicing playbook worth investing in to achieve optimal success:
Incorporate analytics into your portfolio retention strategy
Now is the time for lenders to increase customer lifetime value and conduct a data-driven analysis of their portfolio. By leveraging data analytics, servicers can identify at-risk customers who have shopped for new rates with competing lenders and others who simply qualify for a lower interest rate. Lenders who leverage this analytical process can expect a higher rate of customer retention, satisfaction, and increased lifetime value across their entire portfolio.
Use RPA to perform processes throughout the lifecycle of a loan
Mortgage servicers have tremendous opportunity to improve the speed of processing documents throughout the lifecycle of a loan. Today’s most innovative processors are improving processing speeds by leveraging robotic process automation (RPA) in their daily activities. Eliminating manual steps enables RPA to handle repetitive, checklist-driven tasks at faster speeds and at a lower margin of error, netting an improvement in customer experience.
We conducted a time-in-motion study with a top-10 U.S. mortgage lender and expedited processes by 20 percent. The lender needed to increase efficiency of a quality control checklist containing 300 items. Sutherland reviewed the checklist and automated 20 percent of the tasks, ultimately expediting the process and enabling their team members to spend time focusing on more meaningful tasks.
Streamline communications with borrowers via a mobile app
Today’s consumers prefer instant communication through mobile devices. Why not communicate with them through their preferred means of communication? Sutherland has developed an app to handle communications during the loan modification and loss mitigation processes for mortgage companies. This app facilitates bi-directional communication between the borrower and the servicer, while enabling the borrower to provide necessary information and documents during the loan modification process. Leveraging the app makes it easier for customers to share information with their servicers, eliminating unnecessary stress that comes from refinancing, updating terms of the loan, and more.
The time to leverage digital methods to enhance mortgage servicing processes is now. From better retaining your portfolio to automating mundane tasks, to improving communications with your borrowers, digital applications can drive significant results for your business.