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72 I N D U S T R Y I N S I G H T / S U S A N G R A H A M As the new year gains steam, many mortgage ser- vicers may be looking to fulfill their resolution to find new servicing opportunities to generate more income and grow their business. Expanding the scope of the servicer's business by increasing the types of loans ser- viced or types of borrower markets served might seem to be the best approach. But in fact, it may actually be more lucrative for servicers to narrow the scope of their business by finding a niche. Identify- ing a niche in the mortgage industry that's a natural fit enables the servicer to focus on and excel in a particular area of business, better catering to particular needs than if they were spreading their re- sources across multiple verticals. WHY FIND A NICHE? Today's consumers are looking for more personalized service from their financial institutions. Finding a niche often creates a more personally relevant experience for borrowers, as resources and staff expertise are specialized to those borrowers' specific needs. is introduces a positive point of differentiation that can attract more customers and open up further business opportunities for the servicer. Borrowers have the freedom to select who they use for their mortgage financing; however, many lenders do not service the loans they originate. is results in the servicing of the loans being transferred to someone else with no preference from the borrowers. In this case, a company (or lender) that originates loans and retains the servicing allows the borrower to control who they interact with from application through the life of the loan. Retaining the servicing also allows the servicer to provide the same level of personalized service their company may be known for, instead of handing the borrower off to another servicing company in which the borrower is one of many, and the call center staff relies on scripts for canned responses to customer inquiries. Furthermore, catering to a specific need can also result in more operational efficiency and cost savings for the servicer as the company is able to focus its resources on a particular area of Identifying a niche in the mortgage industry that's a natural fit, such as default servicing, enables servicers to better utilize resources,while catering to particular needs.