Some Ways Lenders Might Stay Competitive | Topouzis & Associates, P.C.


September 23, 2019

Some Ways Lenders Might Stay Competitive

Some Ways Lenders Might Stay Competitive

In a January report on the loan servicer industry, Altisource (a company specializing in providing mortgage, real estate, and technology services) revealed a number of results from its Default Servicing Survey, which gauges the input of more than 200 professionals in the mortgage default servicing sector. It brought to bear the general state of the industry, given the decline in inventory in the previous five years. This decline has resulted in servicers expressing a desire to work in tandem with larger service providers which are capable of offering “end-to-end capabilities.” Indeed, the majority of servicing professionals who evaluated vendors in search of one to manage their default portfolio considered it very important that the vendors had capability to engage in end-to-end default disposition (at 93 percent) and REO asset management (93 percent). They considered these elements key to staying competitive.

The biggest challenge these professionals perceive in the landscape—as related by 29 percent of them—is increased purchase competition. The automation innovations they perceive among their competitors ranks high in their list of risks, as does cost of regulatory compliance, and, of course, rising rates.

The report revealed areas of potential utility to lenders when composing their strategies to remain competitive. Among these were:

  • They could outsource operations—either in part or in whole—to achieve a cost model with more variability.
  • They could join peer networks, which increase means by which to save money, develop partnerships, and obtain further knowledge.
  • They could focus on retaining top performers, but simultaneously continue to seek out new talent.
  • They could consider implementing pilot programs—for example shifting a portion of their business over to variable-cost models as a way to start increasing savings.

Meanwhile, the competitiveness of lenders goes a long way toward making the market more amenable to homebuyers. Whether you’re looking to buy in Westchester, Massachusetts; West Palm, Florida; or Newport, Rhode Island, you’ll need to make sure your new home is not threatened by defects in your ownership of title. At Topouzis & Associates, P.C., we delve deeply into the history of your properties—including foreclosures—in order to ensure that your property ownership will not be hindered by past issues; and we provide the Title Insurance to back our assessments. Contact us to ensure that you are covered in case of surprise.