Sagent & Bizzy Labs Regtech Deal Delivers Automated Compliance & Customer Care for Mortgage Servicers
At Sagent, we’re committed to modernizing the mortgage and consumer loan servicing process for America’s top banks and lenders. That’s why we’re so thrilled to announce our new regtech partnership with Bizzy Labs.
We have partnered with Bizzy to jointly offer Libretto, an AI-powered compliance engine that empowers servicers to automate the complex and expensive compliance process for more accurate and compliant servicing and MSR transfers — all while lowering operational costs, reducing compliance risk, increasing loan valuations, and improving the borrower experience.
“Servicer errors can erode profitability, rattle customers, and lower retention. Sagent’s Bizzy Labs partnership ensures servicers get the experience right for their customers and their bottom line.”
— David Doyle, EVP of Business Development at Sagent
Right from the start, Libretto powers faster, more accurate loan boarding. From there, Libretto runs your entire portfolio against a comprehensive database of more than 600 business rules sourced directly from clients, regulators, and investors to flag data anomalies.
These checks are performed on a daily basis (with the ability to run compliance checks on-demand as desired), and servicers can configure the business rules within Libretto, adding or removing rules as needed to meet specific organizational requirements.
Libretto then creates a definitive checklist for resolving data issues that, if left unchecked, could generate borrower complaints and heighten compliance risk. Servicers can be more thoughtful and methodical about managing risk because they have better controls in place and can do more (and do it better).
“This new automated compliance engine accelerates Sagent’s consumer-first modernization of mortgage servicing,” said David Doyle, EVP of Business Development at Sagent. “Clean onboarding and continuous portfolio surveillance mean fewer errors and happier customers.”
Servicer profitability is already eroding, even more so as compliance costs rise as COVID-driven forbearances mature into loss mitigation scenarios. Most of these costs come from hiring additional audit and QC employees to monitor portfolios, as well as additional customer service support to field error inquiries from borrowers. This problem compounds when regulatory measures tighten with political cycles.
Libretto’s AI-powered compliance engine is the right servicer solution at the right time, powering an increase in loans serviced per employee (LPE) by as much as 30%.
“We’ve been refining our AI to solve data integrity issues for the last 9 years as a prominent servicer/subservicer,” said Gagan Sharma, CEO of both Bizzy Labs and servicer/subservicer BSI.
“The result is Libretto, a digital approach to loan file perfection that’s reduced error rates by 80% and borrower complaints by 50%. It runs 600+ investor and regulator rules on portfolios to deliver precise department-specific checklists for resolving customer loan issues daily.”
After Sharma’s team refined Libretto using BSI’s own portfolio plus portfolios they service for lenders throughout the U.S., they spun off Bizzy Labs as an independent big data regtech company to serve America’s top servicers and investors.
Partnering with Sagent makes Bizzy’s cloud-based Libretto immediately available for the millions of loans Sagent powers for servicers, and its full APIs make it easy to integrate to all platforms.