One of the reasons lenders are embracing the MortgageFlex mortgage loan servicing software is that they are under intense pressure to drive more revenue. Capturing the servicing income is one way to do that and our software makes that easy.
But beyond that, having a unified platform that allows the lender to make money on either side of the business makes the lender more competitive.
We wrote about it in some detail recently in an article that appeared in publication and a new White Paper you can get on our website now.
One of the reasons it’s been so difficult for lenders to compete is that the CFPB has been telling home loan borrowers to complete applications with at least three lenders to get a good deal.
But if you’re already servicing a borrower’s existing home mortgage and doing so well, they already trust you and won’t need to go to two other lenders for their next home loan.
This is how depositories have been so much more successful than Independent Mortgage Banks through this downturn and why they should be considering servicing in their future plans. Banks, community banks and credit unions lost out to the big independents during the refinance booms of the past, but that is all changing now. However, because they don’t treat mortgages like a standalone business, they rarely capitalize on this competitive advantage.
Even though the market is very competitive, the MBA released a new estimated loan volume for 2024 in November that is now calling for more than $2 trillion in new loan originations. This opens up the possibility for additional revenue, in the form of origination fees, discount points, closing costs and ultimately gains on the sale of the assets.
But here’s where it gets really exciting. If the lender holds onto the loan and services the mortgage, there is more money to be made, including monthly servicing fees, late payment fees, prepayment penalties, and interest earned on escrow accounts.
Here’s the problem that most lenders will have when aiming for this goal: Loan origination and servicing software haven’t worked well together in the past.
It’s no secret. STRATMOR Group mentioned it in a recent post in Rob Chrisman’s daily email:
“Let’s face it. The mortgage technology space is a complicated jumble of offerings from multiple providers with significant overlap as vendors move upstream, downstream and evolve into adjacent market segments. When lenders finally pull the trigger on a given solution, they are never sure they are getting a reasonable ROI if any ROI at all.”
Connecting the various platforms together has always been problematic and it’s prevented lenders from earning the revenue they could. But that has all changed now with the unified platform available from MortgageFlex.
Read more about it in our recent article or go right to the download page for our new White Paper.
Then, see the mortgage industry’s first and only unified platform for loan origination and mortgage servicing by visiting MortgageFlex online and scheduling a live demo today.