*Provide A Competitive Edge*
**By Joe Dombrowski**
***Technology that separates loans into distinct silos can be a barrier to driving down operational costs. With today’s fierce competition, deploying a more efficient servicing software strategy can mean the difference between growing the portfolio and just surviving. In fact, Fiserv has seen several financial institutions reduce up to 60 percent of their loan servicing-related software by replacing disparate technology with a consolidated servicing solution.
****One very large servicer had a vision several years ago to consolidate its debt utility technology on a system that could support all mortgage and consumer loans. The first step was migrating several million mortgage loans onto LoanServ. After this initial migration, the company purchased and converted additional portfolios consisting of another million-plus mortgage and home equity lines. Today, it supports all mortgage, consumer and outsourced loans on the Fiserv servicing solution.
****Because the system enables one workflow and one workforce for all its retail loan portfolios, the institution was able to reduce its cost of servicing by 37 percent and increased loans serviced per FTE by 36 percent. The integrated default management functionality also enabled the institution to reduce the overall timeline to qualify borrowers and set them up for loan modifications. By using the system’s embedded workflow automation, the servicer is handling 1,200 files a day and has cut the work time per file by 50 percent.
****Consolidated servicing provides a distinct advantage and allows you to do much more than “maintain the current situation.” No matter what loan products look like in the future or how many loans are being serviced, forward-thinking servicers can implement a consolidated model that will reduce costs, increase productivity and create opportunity.
Joe Dombrowski is Chief Mortgage Strategist at Fiserv. He is a seasoned executive with over 25 years of experience in the loan servicing industry. With his broad background in servicing and systems management, Mr. Dombrowski has helped servicing and default organizations to streamline business processes and find real savings and productivity. Mr. Dombrowski is a sought-after speaker at technology and lending conferences. He graduated St. Joseph Seminary College, Los Altos CA, with a degree in philosophy. He can be reached at email@example.com and welcomes your tweets at @joedombrowski.