General World News

Opinion: Use data to scale your mortgage servicing business

Mortgage servicing is a scale business, meaning the economics of scale can be achieved with larger servicing portfolio by spreading the fixed costs among more loans being serviced. Such scaling; however, hasn’t achieved the expected results as indicated by both the increase of servicing cost on a per-loan basis and on loans serviced on a per-employee, basis according to the research for the past decades by the Mortgage Bankers Association.

This trend is more distinct for the non-performing loans whose servicing costs quadruple from below $500 before the housing crisis in 2008 details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com