Our Compass for 2023: How We’ll Go Beyond What’s Possible in Servicing
The servicing industry is in the middle of a long intersection, still navigating homeowner requests related to the lingering effects of the pandemic while providing (and anticipating) assistance to those who may need it in a potential economic downturn—all in an increasing rate environment. An expected uptick in delinquencies and foreclosures warrants creativity, flexibility and innovation in processes and technology from Servicers, who are also expected to provide consistent, reliable customer service in the face of market headwinds.
How we go beyond these challenges to find opportunities is critical for the ecosystem to remain nimble, listen to homeowners’ needs and work together to anticipate the unforeseen.
As we embark on a new year, we remain focused on our efforts to Reimagine Servicing® and are transforming the client experience through servicing solutions that leverage data, innovation and speed to market. In 2023, by collaborating with our clients and partners and improving our policies, programs and technology, we’ll go beyond what’s possible. Here’s how:
Strengthen Direct Integration of Our Technologies
Direct connection to our solutions via application programming interfaces (APIs) that integrate with organizations’ existing platforms is the fastest way to share data and remove risk. Implementation of our tools through APIs streamlines the workflow for borrower decisioning, provides easy interactions for tasks like filing claims and getting reimbursements and offers the opportunity to swiftly adopt innovative new programs and policies.
Moreover, APIs allow us to share information through data marts—subsets of a data warehouse focused on a particular line of business. This technology, which has been requested by our clients, reduces the cost of deriving the data from another source while empowering Servicers to make the best decisions for homeowners. We’re also exploring opportunities to modernize B2B integration for Loan Level Reporting, our core investor reporting process, and we will continue to seek ways to engage our business partners and the emerging technology firms transforming our industry.
Optimize Default Management
Later this year we plan to retire Workout Prospector®, our loss mitigation tool, and pursue our ongoing mission of enhancing default management through Resolve®. This robust solution provides speedy decisioning to the homeowner and quick, seamless implementation of updated loss mitigation policies and procedures. We’re aiming to add new workout options like Payment Deferral and other liquidations.
This year, full adoption of Resolve will provide us with greater insight into the reasons borrowers are ineligible for our programs, allowing us to work with Servicers to explore exceptions for homeowners on the margin that help address their delinquencies.
Beyond 2023, we’ll focus on other aspects of default management including foreclosure and bankruptcy management.
Hone the Synergy Between (MI) Companies and Servicers
We’ve already released two solutions in Total MISM, our cohesive suite of tools that enhances efficiencies around three key mortgage insurance (MI) processes. Total MI Claims ensures that claims are filed accurately and timely, reduces the operational level for Servicers and MI companies and provides greater payment certainty, which is impactful to our Credit Risk Transfer (CRT) partners, to Servicers and to us.
Total MI Reconciliations confirms that loans with MI are validated with the MI companies, Servicers and Freddie Mac, ensuring accurate tri-party tracking of data elements and providing downstream impacts to claim accuracy and our investors.
Coming later this year is Total MI Cancellations, which gives Servicers near real-time responses related to MI coverage cancellations, saving the borrower time and money while creating significant efficiencies and cost reductions for Servicers. Our objective with this solution is to leverage APIs and our valuation tools to make borrower-requested cancellation a simple transaction that allows for appropriate risk reduction.
Leverage Data in New Ways
The data we obtain from our Servicers is a key component to building models and predictive analytics. Our goal is to eliminate superfluous or duplicative requests for data or documentation, which are time-consuming and decrease efficiencies. In addition, we support the Mortgage Industry Standards Maintenance Organization (MISMO®) efforts around Transfers of Servicing data standardization, while acknowledging that more efforts are needed to help mitigate these borrower impacts.
In 2023, we continue to work with our clients, business partners and every part of the mortgage servicing ecosystem to produce the best outcomes.
Our collaboration with Servicers helps curate best practices for our solutions—PAID, Resolve, Total MISM, Investor Reporting and Servicing Gateway—which are shared broadly to maximize our collective investments. We are also augmenting our customer experience (CX) efforts to collect and share insights to fully understand our mutual priorities.
Learn more about how you can partner with us in providing solutions that create a seamless servicing life cycle while reducing risk, improving the borrower experience and promoting sustainable homeownership.