Servicing Software.(technology to improve loan administration)(Brief Article)

With rates rising, the focus is finally coming off loan origination. And that means servicing managers have a better opportunity to persuade the powers that be within their companies to upgrade investments in technology to improve loan administration.

The timing couldn't be better, because with margins tightening up on the loan production side of the business, lenders are going to be under heavy pressure to squeeze more profitability from their loan servicing units. Impairment recovery may be nice, but over the long haul it's the companies that service loans most efficiently, maximize ancillary income and provide top-notch customer service that will perform the best. Operating profit margins, which have improved steadily if not spectacularly among mortgage servicers in recent years, are the key to making loan servicing a strong profit margin.

Operating profits have been helped by the housing markets, of course. Rising home values ...