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60 I N D U S T R Y I N S I G H T / M A T T E A S L E R Technological innovations can be key to more effective servicing strategies, but the bottom line for maximizing efficiency and customer service comes down to one thing: communication. Despite mixed reviews for what 2019 has in store for the housing market, the combination of a strong economy, low unemployment, and rising wages are motivating consumers to buy, and a significantly greater number of those buyers are poised for long-term success as mortgage loan default and delinquency rates continue to fall. Delinquency rates haven't just fallen—the Mortgage Bankers Association's recently released National Delinquency Survey reported that they had dropped to an 18-year low in Q4 2018. A report from CoreLogic looked at how today's delinquency rates are influenced by the timeframe of their loan origination. Approximately 67 percent of conventional loans that were seriously delinquent in September 2018 were originated between 2003 and 2009, compared to just 23 percent of seriously delinquent conventional loans originated between 2010 and 2018. is data points to the significance of market conditions surrounding the 2008 housing crash and its impact on delinquency rates. e mortgage industry has made great strides since that crisis—investing in technology, enhancing existing tools and platforms, and increasing communication efforts to fortify sound, practical residential loan servicing practices to help better manage risks, maximize cash flows, and minimize defaults. ese efforts have been deliberate and specific, focusing on early intervention and better ways to bring technology into the fold. e evolution of those practices is, of course, continuous. Today, banks and mortgage servicers are faced with a landscape characterized by changing regulations and increasing investor demands for transparency and accountability. ese new expectations require mortgage industry stakeholders to seek multiple levels of communication and accountability. is includes ensuring that operations are compliant with regulations to avoid legal and headline risk as well as assurances that investment values and returns are maximized. To do that, servicers need both information transparency—What is the borrower's loan schedule? What is the loan's history? What possible escrow changes would affect the loan?—and technology to improve both the servicer and borrower experience. Communication also needs to happen between mortgage professionals and borrowers in clear and understandable terms. is, in turn, will enhance both the borrower experience and the likelihood of loan repayment. USING TECHNOLOGY In their infancy, servicing platforms were primarily designed as accounting systems for receiving funds and calculating loan and principal balances. Today, in addition to the accounting aspects of servicing platforms, new, more automated technologies can spot changes in loan and transaction performance sooner, ultimately providing earlier intervention for proper issue resolution and risk avoidance. Risk surveillance analysts are required to monitor a breadth of mortgage activity to identify potential problems and risks before they happen. With proprietary technology platforms, analysts have been able to provide clients with independent, third-party assessments of asset