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In the last two years, the housing market has shifted dramatically.
e refi boom has been replaced by a purchase market. A fixed-rate
mortgage that was once at bargain-basement low interest rates is
above 6%. On top of that, the regulatory environment remains ever-
changing. It is a challenging time for many financial institutions that
are now focusing on a purchase money market and putting new efforts
toward ramping up their Adjustable-Rate Mortgage (ARM) products,
buydowns, home equity loans, and Home Equity Lines of Credit
(HELOC) loans.
Now is the time to consider outsourcing
your mortgage portfolio, and here's why.
1. REGULATORY KNOWHOW
e scrutiny of this regulatory environment
has resulted in more work for financial
institutions that are either originating loans,
servicing loans, or doing both. ese companies
need to think about how to offer new products
in order to retain their place in the market.
e quality of a servicer's regulatory change
management process and compliance is important
as financial institutions begin to promote products
like HELOCs, for example, to customers as
interest rates continue to rise. So while a company
is focusing on how to market a HELOC to
its customer base, using a partner that has
the expertise to manage the regulatory and
compliance requirements is undeniably the most
critical factor to consider when selecting a servicer.
THE TIME IS RIGHT
With the market shifting, here's why financial institutions should consider
partnering with a mortgage servicer now.
Feature By: Lori J. Pinto
