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66 I N D U S T R Y I N S I G H T / T R A V I S R U L L E Broad economic indicators suggest that the economy will be- gin to cool in 2019. e Mortgage Bankers Association's an- nual forecast predicts that Real GDP is likely to fall by nearly one-third. Unemployment should remain low, but interest rates are expected to rise to 5 percent. Lenders are likely to struggle with building and maintaining origination volume, as well as keeping costs in check. What will this mean for mortgage servicers? e good news is that economic growth should yield a continuation of the low delinquency rates we've experienced in recent years. Black Knight's latest First Look report revealed that mortgage delinquencies fell another 18 percent in October (year-over-year). Fannie Mae and Freddie Mac both report that serious delinquencies (90 or more days past due) are below 1 percent. Ad- ditionally, wage growth topped 3 percent this year, and with home prices sky-high, this trend should continue in 2019. Exceptions will be regional: think GM plant closings, or areas hit particularly hard by tariff activity. For mortgage servicers, the challenge will be to maintain a palatable cost per loan in a shrinking margin environment, while also preparing for future market corrections by improving processes (particularly loss mitigation) and integrating technology to serve borrowers better. BETTER DATA + BETTER TECHNOLOGY = BETTER DECISIONS Lenders and servicers of all sizes and types are investing heavily in technology, and there is a hyper-focus on the issue of data—the quality of data, analytics, and its practical application. e next generation of successful companies will find ways to best leverage technology to make that data actionable. Spending millions on new software or mountains of data is useless if it's not utilized to the benefit of the company and its borrowers. Better data and better use of data not only improve current performance but also act as a hedge against future market corrections. But how do you get to that actionable data? In past years, working with a variety of tech- nology/software vendors was a bit like trying to hammer a round peg into a square hole. You could make it happen, but the different systems never seemed to work or communicate smoothly or efficiently. at's all changed, however, with the advent and proliferation of API infra- structure, which has allowed tech partners to seamlessly weave two separate systems together with minimal hassle and with maximum effec- tiveness. Having systems work together allows servicers to collect quality, real-time data, help customers by better anticipating problems, and to spot and respond quickly to consumer trends. is is particularly helpful when it comes to loss mitigation. ose in the servicing space can learn quite a bit from the lessons and experi- ences of their colleagues on the origination side. ey have been the trailblazers when it comes If and when the current economic boom takes a downward turn, servicers will need to rely on three critical elements to help support their loss mitigation efforts: data, technology, and people.

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