June 12, 2015 Although the Standard & Poor’s/Experian Consumer Credit Default Indices have been reporting a decrease in default rates for first mortgages in recent months, the industry is still struggling to identify the best methods to effectively manage defaulted loans. Despite this decrease in the default rate, servicers need default servicing systems that deliver greater flexibility - without integration issues and without depleting their technology budgets. Increased scrutiny from federal agencies regarding the accuracy of borrower information means servicers have no choice but to embrace technology, as it is the only way to maintain efficiency while also monitoring compliance efforts.
Technology, to date, has been able to manage the requirements of each stakeholder in the servicing food chain, no matter what the volume. Nonetheless, there are certain features and capabilities that default servicing systems should deliver in order to help all parties in the process react to the ever-changing requirements. What follows are the top five things servicers should look for in a default servicing system that will help them navigate future change.