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In a technology dependent industry like mortgage lending, software is too big a topic for one special report. Just about everything you do in your business requires some level of automation to make it more efficient. In fact, the field of loan administration as it exists today would not be possible without technology. Can you imagine trying to manage the monthly payment and remittance process on a mega-portfolio in the days before computer power was brought to the industry?
For years, the biggest lenders have been betting that economies of scale will give them an advantage in the business. The theory goes like this: The "marginal" cost of servicing a loan is lower than the average cost. In other words, you can always add one more loan without hiring more staff or taking on new costs. So why not keep adding loans until you are at full capacity, making sure to get as much bang for the buck as you can from your servicing ...