Subservicing Special Report.(Brief Article)

The subservicing industry continues to grow, as more and more mortgage lenders opt to outsource loan administration while continuing to own and control the ongoing relationship with home loan borrowers. The industry is on a fast track to even more growth. And it's not just true on the residential lending side of the business. In commercial mortgage servicing, increasing attention is being paid to the cost of loan servicing. The rise of commercial mortgage backed securities has helped to generate a new breed of servicers who can service loans for others as well as for their own portfolios. And life insurance companies, traditionally big holders of commercial mortgage loans, find themselves under more pressure than ever before to manage their costs. In some cases, that means making a decision about whether or not servicing is a core competency. If it's not, then maybe it's time to outsource it.

There is no doubt that "private-label" service has helped generate more demand for subservicing. Most ...