The Headwinds Worrying Servicers

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Eric Wilson, a mortgage industry veteran with over 20 years of experience, serves as SVP Business Leader – Mortgage for SLK Global. Tagged with: Borrowers default loans Operating Costs Servicers Servicing Technology Sign up for DS News Daily About Author: Eric Wilson Home / Daily Dose / The Headwinds Worrying Servicers Previous: Housing Deficits in the Silver State Next: Foreclosure Trends by the Numbers Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post in Daily Dose, Featured, News, Servicing The Headwinds Worrying Servicers Demand Propels Home Prices Upward 2 days ago Now that the first quarter is behind us, which is traditionally slower on the origination side of the house, lenders and servicers are shifting their attention back to the servicing side. While overall bank profitability was down over the past year, according to the MBA, net income related to mortgage servicing nearly doubled.With originations expected to fall by the end of the year, as predicted by the MBA and more recently by Fannie Mae as well, lenders are now looking at bold new ways to solve servicing challenges to reduce costs and increase profits.Having been a part of the mortgage industry for more than a decade now, we jotted down some of the biggest concerns that servicers are facing today and the solution that can help them mitigate these challenges. Continuing Compliance PressureThere is no part of the mortgage lending business that is not subject to the continuing pressure from federal and state regulators. Even with the recent Dodd-Frank rollback legislation signed by President Trump in May, compliance will likely remain a top concern for the industry. It is anticipated that any regulatory slack offered by the federal government will be taken up by state regulators. This is especially true on the servicing side, where consumers are captive to the servicer and have no choice in how these firms operate. State regulators are likely to start paying more attention as the nation’s largest banks continue to ease away from mortgage servicing to better comply with Basel III, as reported by Fitch Ratings. This has shifted portfolios to many nonbank servicers, in a big way.In fact, Bloomberg recently reported that nonbank servicers now hold 51 percent of the nation’s mortgages in their portfolio. This is a concern for state regulators. as banks have been more heavily regulated in the past. The industry expects more scrutiny especially on nonbank servicers, which is likely to impact everyone on the servicing side.The Cost Reduction ChallengeAs operating costs continue to rise across the industry, it’s largely been the loan originator who has received most of the sympathy. With the cost to originate a mortgage loan nearing the $8,500 mark, it’s easy to see why. But servicers are also subject to increasing costs.At a recent servicer roundtable hosted by Fitch Ratings, servicers in attendance pointed to four primary reasons for their rising costs: (1) compliance expenditures impacting performance; (2) compliance costs; (3) more state servicer reviews; and (4) trouble transitioning out of HAMP to other modification strategies.Today, servicers are looking for ways to cut their operating costs without impacting their performance. It’s hard to do so on their own as these companies are typically not staffed to innovate in a manner that will help them overcome these challenges on their own. That’s why they are reaching out to third-party partners, but even that is a challenge.Finding the Right PartnersA number of servicers have expressed difficulty in finding the right third-party outsourcing partners that understand both technology and process. Some companies specialize in putting more people on tasks that would cost the servicer too much to handle on their own and some firms offer automation to ease the servicer’s workload. There are very few that understand both.Today’s servicing business is too complex to risk working with partners that don’t have the experience to know what the servicer really needs. Due diligence has never been more important, to create more opportunity for servicers that choose the right partners.The smart servicer will look to leverage the right partners to help transform and grow their business during this optimal time. Their years of experience in the servicing business has given them the ability to choose technology that works for the mortgage servicing industry. This makes every interaction between the servicer and the third-party partner more efficient, lowering costs, and improving the servicer’s bottom line. Finding them will involve extensive due diligence, effective risk mitigation, and the will to settle for nothing less than full transparency and high efficiency. Accessing the Best TechnologyIf there is one truth in the modern home finance business it’s that servicers and lenders cannot take technology out of their process. The lending operations are built on good technology, but with the fast pace of technological innovation, it can be difficult and expensive to keep up with the latest tools. Failure to do so can quickly put the servicer at a competitive disadvantage.The high-tech software is a mission-critical tool for driving the advanced mortgage servicing machine. Whether its customer service, process automation, or analytics and data intelligence, employing the best technology is not optional in 2018. It hasn’t been for a long time.Finding the right technology is a full-time job. Once the right tools are located, financial challenges become the critical consideration. Balancing capital expenditures (CAPEX) with operational ones (OPEX) (which will provide the lowest total cost of ownership) while ensuring a viable return on investment (ROI) once the implementation is complete is a massive undertaking. So many things can go wrong that many experienced executives shudder at the thought of installing new technology. By the time most companies figure it all out, they’re already behind.RegTech is a special class of technology that more regulators and investors are finding important for the servicers they work with or oversee. This has made it critically important in this space and servicers know it. Everyone we have spoken with seems to be prepared to make the technology investments required to succeed, while at the same time lower their operating costs if they can find the right tools.Servicing Success in 2018While these challenges are expected to constitute the theme for servicers for the remainder of 2018, they are also the doorways to opportunity. Servicers are looking forward to having the breathing room to do the work of transforming their businesses, whether they are pursuing operational efficiency or zero tolerance full compliance.When servicers really look at the businesses they are in today, and the environment they must operate in, it doesn’t make sense for them to spend their resources simply seeking the lowest friction, lowest CAPEX, and lowest OPEX in the hope of driving value. Instead, they should be focused on what really drives value in our business: compliance, quality, and customer service.This is the time to seek out the expert partners that they can plug and play with to share that load. Borrowers default loans Operating Costs Servicers Servicing Technology 2018-07-12 Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago July 12, 2018 1,621 Views Related Articleslast_img read more

Rowe’s set to grow Asda concessions

first_imgCornish craft bakery chain Rowe’s has announced it is set to open a further two concessions in Asda stores in the south west.“On the back of the success of our Rowe’s branded concession within Asda, St Austell, we are set to open two new concessions at the Asda stores in Plymouth and Falmouth,” confirmed Paul Pearce, director of marketing.Rowe’s first concession opened in July this year, and was Asda’s first in-store savoury bakery concession. “We will be recruiting approximately 20 new staff members in total and we anticipate opening in the Plymouth and Falmouth Asda stores in the early part of 2010,” added Pearce. “Rowe’s is delighted to be continuing to expand our partnership with Asda and we’re looking forward to working together at both new locations.”Rowe’s has supplied breads, cakes and pastries to Asda in the West Country for the past 15 years. It also supplies frozen unbaked savouries nationally for the retailer’s in-store bakeries and cafés.last_img read more

With multiple scenarios in play, Dodgers’ pitching plans are up in the air

first_img Fire danger is on Dave Roberts’ mind as Dodgers head to San Francisco But all of that could change.The Dodgers have scheduled rookie right-hander Walker Buehler to start Sunday against the San Francisco Giants. But Dodgers manager Dave Roberts would not commit to that if Sunday is not an elimination game for the Dodgers.“Obviously these next two games, things can change,” Roberts said. “Leading into Sunday, we have Walker slated. Then it gets to Monday or Tuesday – we’ve got some options. But right now, we’re just not prepared to say who and when we’re going to use Rich.“We have some options and we don’t have to make a decision right now. Things change. Going forward, we’ve got to think through every option.”Ross Stripling lasted only 1-2/3 innings and 47 pitches in his start Wednesday in Arizona. He could be available to pitch out of the bullpen on Sunday, Roberts said. Left-hander Alex Wood has not started a game since Sept. 10, making four relief appearances each under an inning in length since then. But either could be used as an “opener” in a bullpen game Sunday in San Francisco if the Dodgers decide Buehler should be saved for a play-in game or wild-card game. Newsroom GuidelinesNews TipsContact UsReport an Error Dodgers’ Max Muncy trying to work his way out of slow start Dodgers hit seven home runs, sweep Colorado Rockies How Dodgers pitcher Ross Stripling topped the baseball podcast empire Cody Bellinger homer gives Dodgers their first walkoff win of season SAN FRANCISCO — Rich Hill hasn’t thrown a pitch since last Saturday. But he looms larger for the Dodgers with each passing day.The Dodgers skipped Hill in the rotation this week so that he would be available for a potential Game 163 play-in game on Monday or a wild-card game if that’s where the Dodgers land.“The mindset is like if you were at home and somebody picked up the phone and said, “Hey, you gotta pitch today,’” Hill said. “You stay ready. And if you always stay ready, you don’t have to get ready.”Hill said he threw his bullpen session earlier this week and did a shoulder workout Friday. He’ll do some more throwing Saturday if a Monday start looks likely. That would leave Hill waiting even longer for his next assignment.“Of course, it’s exciting,” Hill said of the prospect of play-in games. “You have to look at it as a positive. You can’t take it as a negative. You can play the ‘coulda,’ ‘shoulda,’ ‘woulda’ – ‘shoulda’ beat the Reds, ‘shoulda’ won this game in the middle of August, ‘shoulda’ beat the Phillies in extra innings. Whatever you want to say. But you can’t change it so you have to make the best of it.“There’s obviously a lot of teams that would like to be in that situation. Teams that are going home are like, ‘Man, I’d play a game 163 right now if we get a chance to compete.’”STRIP DOWNStripling rescued the Dodgers’ starting rotation in the first half of the season, going 8-2 with a 2.08 ERA and earning a trip to the All-Star Game.Things haven’t gone as well in the second half.Stripling failed to complete five innings in his first two starts after the break, went to the DL with a questionable toe injury and then went to the DL again in August with an actual back injury.Since returning, Stripling has made four starts with a 6.94 ERA, failing to complete four innings in any of the starts.“It’s been really tough,” Stripling said. “I think about the All-Star break and it kind of went down there. Coming off two DL stints. I’m not going to make any excuses. But you’re right, I haven’t been able to have a lot of traction. I haven’t had any outings where I was able to kind of build confidence going into another outing. They’ve all just kind of been a battle.“Normally, you want to throw a Day Two bullpen where you’re going through the flow, getting things right. It seems like all my bullpens I’m working on stuff. Kind of tough when you’re trying to help a team win and trying to help a team that’s battling for playoff implications and you go out there and you don’t get through two innings (Wednesday). That stinks. Hopefully, it’s not the last time I take the mound this year.”ALSOThird baseman Justin Turner was in the starting lineup Friday after taking a ground ball off his left thumb during Wednesday’s game in Arizona. X-rays taken Wednesday night were negative and Roberts joked that he had not checked in on Turner before Friday’s game because he didn’t want to hear any bad news. “Hopefully, no news is good news,” Roberts said. “He’s in the lineup.”UP NEXTDodgers (LHP Clayton Kershaw, 9-5, 2.53 ERA) at Giants (RHP Dereck Rodriguez, 6-4, 2.50 ERA), Saturday, 1:05 p.m., SportsNet LA (where available), MLB Network (out of market only)Related Articleslast_img read more

Rams RB Todd Gurley denies his knee is still injured

first_imgTodd Gurley’s performance in the NFC championship game against the Saints was underwhelming, but he’s not willing to place any blame on his knee.Gurley, coming off a knee injury that caused him to miss the Rams’ final two regular-season games with inflammation, insisted he just had a substandard game and denied there are any lingering issues with his knee. Coach Sean McVay indicated earlier this week Gurley would receive more opportunities in the Super Bowl against the Patriots, but Gurley insisted he doesn’t care about any of the speculation or how many carries he gets. He said he’s focused instead on doing what’s best for the team. Gurley had a career-low five touches and gained 13 yards in the Rams’ 26-23 overtime win over the Saints. While there was some speculation Gurley aggravated his knee, the 24-year-old put those rumors to rest.“I’m good. If there was an issue on my knee, it would be on the injury report,” Gurley told reporters Friday. “Come on now. I’m at practice. I’m playing.” Related News “I don’t ask no questions. I just do my job,” Gurley said. “We got the win. That’s all that matters. I can not play one snap. I don’t care if [long snapper] Jake McQuaide is the Super Bowl MVP. I’ve got one more game left. I don’t care what nobody’s talking about. Y’all can call me hurt. Y’all can call me whatever, but we’re going to the Super Bowl.“What do y’all not understand? It’s not about me. This sport has never been about me. It’s never been about one player. Todd’s only going to be with the Rams so much longer. It’s going to be another dude that comes in just like me. This whole game is bigger than me. It’s not just about me. Why is Todd not getting the ball? Why is that? Because there’s only one football, and there’s 11 guys. Only one guy can touch the ball each time. It’s way bigger than me.”The Rams will face the Patriots in Super Bowl 53 on Feb. 3 with kickoff set for 6:30 p.m. ET. (CBS). Patrick Mahomes reveals what Tom Brady told him after AFC championship gamelast_img read more