Outsourcing: Don't Do It All Yourself.

There's always the temptation to do things ourselves. After all, you can save a lot of money by cutting the kids' hair yourselves. But when it comes to mortgage servicing, sometimes it's best to outsource certain tasks and functions to an expert. Firms that provide outsourcing to the mortgage servicing industry generally add value in two ways.

First, they can build expertise and competency that is unique to a particular task or area of the business, such as default management, escrow management, lien releases, document services or technology. They can stay abreast of compliance requirements that come down from all levels of government and from investors that ultimately own the beneficial interest in the loans. That's a big advantage in today's compliance conscious world, and it is one reason why rating agencies increasingly smile upon lenders outsourcing functions to ...