Outsourcing.

Its no secret that with delinquency and default rates rising, servicing costs are going up as well. Some lenders are reporting that their cost per loan to service is up as much as 30% year-over-year.

That rising workload highlights the need for servicers to focus on their core competencies. Activities that fall outside mortgage servicers core capabilities might be best farmed out to an expert.

Many firms offer outsourcing of specialized tasks to the mortgage industry. Because these vendors focus on a specific area, they are able to accumulate the intellectual capital and technology edge needed to perform their specialized functions rapidly and efficiently. In many cases, this creates a lower-cost option than keeping the tasks in-house for a mortgage servicer.

Just about any aspect of the servicing business has outsourcing ...