There are a lot of options when it comes to servicing technology, and with every option comes multiple claims about how much time and money you can save transferring MSRs and managing loan portfolios. And certainly, efficiency is the goal of every servicer, particularly when it comes to handling the inevitable ups and downs of the market.
However, if your technology is vulnerable to a cyberattack, all those efficiency gains go right out the window. In fact, any technology that fails to protect borrower information can be far more expensive than you ever realized.
Related: 4 Things Your Mortgage Loan Servicing Software Must Have
From the point of view of a hacker looking for personal consumer information, there are few targets as appetizing as mortgage servicers. Think about all the personally identifiable information (PII) that rests within your systems of record: not just the names, addresses and emails of your customers, but social security numbers, bank route numbers, employment information—the list goes on and on.
It’s no wonder then, that over the past year no less than three servicers have been victims of cyberattacks. Two of those servicers are now facing class action lawsuits from borrowers who believe these companies did not do enough to protect their personal information.
One of the biggest data breaches exposed the names, addresses, loan numbers and Social Security numbers of more than 2.5 million borrowers. The full scope of the attack wasn’t determined until months after it began. That servicer is now facing more than a dozen lawsuits from borrowers who claim its failure to protect borrower data was the result of negligence.
Related: How The Right Technology Can Lower Servicing Costs
By the way, these are just attacks that we know about – there could be many more attempts that servicers aren’t even aware of because they simply haven’t been detected.
Earlier this year, the U.S. financial services industry was put on alert by federal officials to be aware of potential cyberattacks from Russian hackers. The Mortgage Bankers Association (MBA) even issued a warning that third-party vendors and contractors could be particularly susceptible to foreign attacks.
Related: Are You Paying Too Much for Outdated Technology?
And while loan default rates are currently near historic lows, that’s likely to change in the coming months, as a brewing recession means more Americans may have trouble making their mortgage payments. In other words, servicers are likely to have their hands full very soon, which is going to making servicing operations more costly. And if your servicing technology isn’t secure, those costs can get out of hand very, very fast.
The reality is that no system in the world is truly hacker-proof. But there are some basic measures that your technology partners should have in place to reduce the risk.
One is being SOC 1 Type 2 certified, which requires a yearly audit to make sure companies have strong internal controls Another is having end point detection and response (EDR) and 24/7 threat hunting protections in place, which indicate your technology provider is actively monitoring and searching for security breaches and suspicious activities.
Related: What the CFPB’s Servicing Metrics Mean for Your Business
At MCC Mortgage Solutions, the security of our servicing technology has always been a top priority. In addition to taking the above measures, our technology is delivered through the Amazon Government Cloud, which touts the highest levels of security available. Our system is also compliant with the Federal Information Systems Management Act (FISMA), which means it meets the same security standards as federal systems to guard data against any threat.
By the way, in addition to safeguarding borrower data, we also help servicers operate more efficiently. Our platform has been used to service more than 10 million loans and is backed by decades of constant functionality improvements that empower any bank, mortgage servicer, credit union or investor to boost productivity and save money, too.
To learn more, just give us a call at 248-350-9290 or drop us a note to: email@example.com.