Lenders in Motion, at Least on the Servicing Side
After months of holding steady, lenders are coming back to the tech table.
Jacksonville, FL — February 8, 2024 — Executives at MortgageFlex, one of the industry’s original mortgage technology developers and creator of the MortgageFlexONE LOS and its companion industry’s first cloud-native mortgage servicing system, said today that January has started off much better than anticipated in terms of new closed deals with mortgage servicers. After many months of holding off on new technology investments, lenders who want to start earning mortgage servicing revenue are signing deals.
“In all the years I’ve been selling technology in the mortgage industry, I’ve never seen this many deals consummated this close to the beginning of a new year,” said John McCrea, Vice President of Sales for MortgageFlex. “The deals are mostly happening with mortgage servicers who are either tired of using outdated technology or new servicers ready to increase revenues.”
At the end of last year, the Fed was sending market signals that seemed to indicate interest rates would fall in 2024, but with the latest inflation numbers that no longer seems certain. This means that mortgage originators will have to wait longer or take more significant cost-cutting measures to be profitable. The other option is to start servicing their own loans.
“Servicing income doesn’t seem as significant when loan volumes are high, but everything changes when interest rates rise,” said Craig Bechtle, COO of MortgageFlex Systems. “Our goal with the new servicing platform was to give every servicer the power to disrupt outdated processes and succeed on their own terms. The industry is responding well to this opportunity.”
For many years, the servicing space has been supported by a single, dominant provider that has not delivered significant innovation to its technology in decades. The MortgageFlex servicing platform uses an open, modern SQL database that provides the servicer access to their data at any time at no extra cost. The system includes simple-to-use industry-standard reporting tools. The servicer may also access their data with third-party tools. Further, MortgageFlex has succeeded in simplifying the conversion of the servicer’s existing data through automated tools and other modern advanced technologies.
The platform is easy for both users and mortgage borrowers. It includes Multilingual consumer facing tools that drive over 80% of all customer service inquiries to the web, saving servicers time and money. For users, it moves away from the 1960’s era green screens that still lie behind most servicing software and works exactly like the modern web apps in use today. There are no transaction codes to memorize to navigate the system. It’s all very intuitive, and work que based, significantly reducing training time and errors.
Perhaps best of all, the updated servicing platform is built on the same intuitive user interface that has made MortgageFlexONE LOS so successful. The flexible design allows services to tailor the solution to meet data consistency and accuracy requirements while enhancing productivity. New implementations come with dedicated production, test, and report servers at the closest Microsoft data center.
MortgageFlex Systems develops smart software solutions for the mortgage industry, offering the most cost-effective mortgage loan origination system and servicing software for retail, wholesale, and correspondent channels. The company offers the industry’s only tightly integrated single database, origination and servicing software, along with 24/7 support, hosting, managed services, and implementation.
MortgageFlex Systems looks to cultivate a strong partnership and is dedicated to helping reach your optimal potential with our MortgageFlexONE platform.