With production volumes leveling off and non-QM originations on the rise, lenders’ desire to concentrate resources and costs on the front end of the business may lead to additional subservicing opportunities. Midsize lenders are ideal candidates for subservicing while offering servicing control to a subservicer with the infrastructure and ability to manage the flow of originations in the lending market.
As loans come out of forbearance and non-QM originations increase, another subservicing growth area will be special servicing. A separate subservicer will manage delinquent loans with portfolio management infrastructure to control credit risk, which servicers and originators will be on the lookout for.
When it comes to subservicing, lenders and servicers require transparency, experience, and a human touch in their portfolios. Interaction with borrowers, compliance, and credit risk management has never been more important. The lender or servicer can give oversight while setting performance indicators to monitor by using a subservicer. This will place the loans in the hands of a well-established subservicer with the necessary infrastructure to manage the portfolio successfully.
The right partner will ensure that the lender is comfortable with its strategy to retain the borrower while meeting its performance targets. As a result, lenders and servicers are looking for partners willing to manage loans as if they were their own.
Originations, borrower retention, loss mitigation, and regulatory compliance are priorities for lenders and servicers. Unfortunately, the infrastructure required to do so efficiently can be costly, resource-intensive, and sophisticated. However, with the help of sub-servicers, this may be done quickly and cheaply. To read more about subservicers and the opportunities presented to lenders, click here.
https://www.housingwire.com/articles/why-2022-could-open-more-opportunities-for-subservicing/
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