Bringing Order During Times of Chaos.(Viewpoint essay)

Byline: Lynn Hatfield

Ms. Hatfield is senior vice president, Professional Services, at LPS (Lender Processing Services), which was formerly Fidelity National Information Services.

The chaotic environment in the mortgage industry continues to challenge mortgage lenders and servicers across the country. Mortgage loan default and foreclosure volumes are still on the rise, the pressure to get loans modified or refinanced is intense, and it's all happening while regulatory and investor changes are coming fast and furious. Many servicing operations are already taxed to the breaking point while others are barely keeping up with the frantic pace.

Certainly, these conditions have been in play for many long months now. Unfortunately, for most servicers, the difficulties have continued to escalate rather than improve. Like ocean waves that come in rapid succession, servicing organizations are faced with volumes that are surging more rapidly than their ability to manage them. Employees are caught up in the undertow, customers are desperate to get help and no one can say when things will get better.

At times like these, it seems impossible to do anything but just keep plowing ahead. Servicing managers may know that operational improvements could help the situation, but the thought of trying to tackle new initiatives in the midst of unrelenting volume is one they quickly dismiss. They correctly believe that they cannot afford to lose any ground right now, even if it is for the long-term good of the organization.

But, there is a way to continue processing ballooning default volumes and keep operations on track even while undertaking significant improvements. In fact, right now is absolutely the best time to address underlying processes that could be streamlined to make servicing operations more efficient than ever.

High Stakes Gamble