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Remember the car from the movie Back to the Future? From an
aesthetics standpoint, the DMC DeLorean was the perfect centerpiece for
one of the most successful franchises in Hollywood history. For true car
fanatics, however, it was kind of a dud.
Despite its stunning lines and overall
"coolness," the DeLorean was massively
overweight for a sports car. It also housed a
modest 130-horsepower V6 engine capable of
doing 0 to 60 in rather pedestrian 9.5 seconds.
In fact, its top speed was just 110 mph—only
slightly faster than the 88 mph Marty McFly
needed to travel back to 1955.
e mortgage industry is a little like
the DeLorean these days. Much of the
technological sophistication in recent years has
taken place on the front end of transactions and
in eClosing technologies, both of which are
highly visible within the borrower experience.
If you lift up the hood, however, much
of our industry is still being powered by
technology built more than a decade ago—
creating downstream impacts to the secondary
market, especially when it comes to the
trading of mortgage servicing rights (MSRs).
ankfully, however, this is starting to change.
RIFE WITH BOTTLENECKS
Currently, originators that sell servicing
rights have extraordinary trouble meeting the
multiplicity of buyer delivery requirements. As
a result, buyers often have to key in information
and process documents manually when
transferring loans into their servicing systems
or delivering loan file packages to subservicers.
is creates extra costs and delays, which
ultimately can make it challenging to comply
with the required timely communications to
Feature By: Dave Parker
DRIVING MSR
TRADES INTO
THE FUTURE
If you look under the hood, our industry is still being powered by technology built
more than a decade ago—creating downstream impacts to the secondary market.
