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Servicers face a myriad of obstacles, both familiar and new. They face portfolio churning generated by rate-induced refinancing. At the same time, they face an unprecedented default management burden, much of it driven by underwriting innovation that has left many borrowers with loans they cannot afford to repay amid declining home values. And every day, someone is pitching a new technology designed to make navigating through this environment a little easier.
You can forgive servicing executives for feeling like they have to relearn the rules of the road, because essentially they do each time the industry evolves. Fortunately, lenders don't have to do this on their own. They can benefit from companies that provide outsourcing, capitalizing on the expertise of a third party just as drivers on the road today benefit from GPS systems and a host of other new technologies to make driving easier. Some of what you learned in driving school 20 years ago may be outdated. Fortunately, ...