While technology has made many aspects of our professional and personal lives more efficient, technologies also become outdated quickly. Flip phones and MP3 players are just a couple of technologiesm that were commonplace 20 years ago but would absolutely mystify today’s younger generation.
Servicing technology is no different. Unfortunately, the vast majority of lenders and servicers today are relying on technology platforms that have been outdated for years, either because the platforms could not be easily converted to a cloud environment or because they haven’t been consistently updated to address new market conditions.
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Over time, this often results in servicers spending much more money than they expected for their technology. But how do you know if you’re using an outdated platform? More importantly, what can you do about it?
Servicing loans is certainly not a glamorous business, but helping borrowers better manage their mortgage loans is important work that can be very profitable. That’s particularly true when mortgage interest rates rise, which increases servicing margins and makes loan portfolios more valuable.
But the limitations of most current servicing platforms not only prevent servicers from maximizing profits, they can also make it more difficult to keep up with changing borrower needs or stay compliant with new regulations like the CARES Act. Often, these limitations will prompt servicers to create manual workarounds or even replace their technology with another platform, only to later find that it too cannot do all the things the servicer needs it to do.
Related: How the Right Technology Can Lower Servicing Costs
Yet another costly risk of using outdated servicing platforms is they often lack strong security protocols, which places borrowers’ personally identifiable information (PII) at risk for cyberattack. In fact, over the past two years, multiple mortgage servicers have experienced data breaches that affected millions of borrowers and resulted in several class action lawsuits.
One major reason why mortgage servicers end up paying too much for outdated technology is that they aren’t fully aware of other options. Many are also convinced that switching technologies involves too much time and effort, even if a new platform could save them money over the long term.
However, secure, modern servicing technology is available that can help servicers streamline their operations, lower costs and better serve customers. And while it’s true that switching platforms can be challenging, technologies that are outfitted with application programming interfaces, or APIs, can make implementation much smoother and easier than you might think.
Related: 4 Things Your Mortgage Loan Servicing Software Must Have
MCC Mortgage Solutions’ servicing platform is a perfect example. Our cloud-based servicing software enables banks, credit unions and mortgage servicers to manage any size lending portfolio with ease and can be configured to handle any servicing strategy. But that’s not all.
For over 40 years, MCC Mortgage Solutions has continually enhanced its servicing software with IT upgrades and new features and functionalities designed specifically to help servicers stay compliant while creating a rewarding experience for borrowers. The system is currently built on the latest technologies and cloud infrastructures—plus MCC Mortgage Solutions uses AWS’ government cloud and employs the highest level of internal controls, as evidenced by our annual SOC I Type 2 audits.
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Servicers can also save costs with MCC Mortgage Solutions’ robust borrower self-service loan portal that lets mortgagors manage their loans online without having to call their servicer for help. Our borrower loan portal is customizable and can be configured to mirror your company’s brand, look and feel, too.
Because of the cost structures of other servicing platforms, many servicers end up paying for more than they really need. But with MCC Mortgage Solutions, servicers only pay for the products and services they use and are charged based on the size of their portfolios. And all clients receive the benefits of our continuous core platform enhancements.
If you’re beginning to think your current technology is preventing your servicing business from reaching its full potential, give us a call at 248-350-9290 or email us at: firstname.lastname@example.org. We’d be happy to set you on the right track.