This blog features excerpts from an article about the future of mortgage servicing by R. Christopher Whalen interviewing Sagent CEO Dan Sogorka. The full article originally appeared here in The Institutional Risk Analyst.
On the heels of a very busy Q1, Sagent is poised to continue to make waves as we get deeper into 2022. Dan Sogorka, Sagent’s CEO, recently sat down with R. Christopher Whalen for an interview published in The Institutional Risk Analyst to dig into what’s next for Sagent and the future of mortgage servicing writ large.
In case you missed the interview, here are a few key highlights:
On the Future of Mortgage Servicing and the Industry Impact of Sagent’s Deal with Mr. Cooper:
Dan Sogorka: “The COOP transaction did generate a lot of inquiry from Buy Side investors about Sagent and the servicing sector more broadly.”
Sagent is all about the cloud-native, open-API model giving servicers optionality and cost control. That fintech development mindset is still new for our industry, but it’s the future. It’s how we deliver ongoing, fast innovation at a lower cost without surprises, and without charging customers for tools they do not use.
“Also, It’s worth noting here that the new technology that powers the Sagent-Cooper vision for servicing is already proven in the market. Mr. Cooper generates customer retention that’s two times the industry average. This clear performance doesn’t just lead to a better experience, it also has significant implications for cost savings by not having to re-acquire lost customers.”
What’s Next for Sagent?
As Dan explained to Mr. Whalen, Sagent is focused on two things (1) executing alongside our customers in the trenches every day to build stable, future-proof platforms for them, (2) staying in the lead on homeowner-first innovation for our industry.
Our vision for data-first, cloud-native platforms that connect consumers and servicers in real time across the performing and non-performing loan lifecycles is accelerating each week.
“As we integrate 200 new Mr. Cooper mortgage fintech specialists into Sagent’s 600-strong team of mortgage innovation experts, we have the best team in the industry.”
“With the recent transaction with COOP, we have a lot more tools to talk about with clients, tools that are highly relevant to an environment where credit and compliance only grow in importance. We’ve also brought on a lot of deep industry talent in the servicing space to support client implementation and execution. We are not going to hand you a proprietary tool and tell you to figure it out yourself.”
“As I’ve said, we’re in the trenches with you to help you redefine how you perform servicing and actually make it a profitable business for your organization. We have found that consultative approach is what the industry wants and it is central to how we approach the market.”
How Is Sagent Pushing Servicing Tech Innovation?
According to Sogorka:
Sagent is all about being in the trenches with our customers to do the precise work of innovating in this complex sector – which is as much about smart technology as it is about intimately knowing the needs and challenges of servicing operators and their customers. Marrying modern fintech with in-the-weeds operational expertise is Sagent’s special sauce, and it’s our unwavering commitment to servicers.
“This is how banks and lenders thrive even in acute market cycle adjustments like this. And the more we help them thrive – and operate in a way they see fit rather than forcing them into black-box solutions – the more they can seize on market consolidation opportunities as this cycle plays out.”
How Sagent Is Driving the Servicing Shift to Focus More on Homeowner Needs
Sogorka: “We will continue to talk about the need to change the paradigm from merely servicing a loan as a debt collector into something that is more sympathetic and responsive to the consumer – again, it’s all about a customer retention mindset. We think that the need to manage expenses and better interact with consumers will make the industry ask whether they have the right technology for that job and the right technology partners.”
“It is not just about efficiently dealing with troubled mortgages and offering the best options for consumers, but how do we get ahead of the process to give servicers and consumers more time to consider options.”
We’ll show you what is possible today, what new products we’re delivering shortly and how you, the customer, can decide how to create your servicing and loss mitigation process to your specifications.
“The industry hasn’t had this before, and with Sagent, now they do. We start with a very different perspective, which is to listen to the client and tell them how we can build and maintain the platform that they want today and tomorrow to be cost-effective and compliant. If they want a certain set of third-party tools added to the mix that they believe are best-in-class, we make it happen in a cost-effective way.”
On How Smart Servicing Tech Can Help Struggling Homeowners:
Sogorka: “No one wants extended foreclosures. Giving consumers options earlier in the process and making sure these are the right options is, to us, the key to effective loss mitigation.”
If you don’t have digital tools that can effectively engage with consumers, then you lose precious time. These are human beings that are going through difficult circumstances. Being able to engage with them, understand their situation and intent, is the key. Doing this via the web or a smartphone is mandatory.
“Sagent was the first to enable digital hardship care as the CARES Act rolled out, and it’s because of our digital-native, cloud-native platform. This lets our servicers maintain real-time compliance and customer care during rapidly evolving market and policy changes – this is the world we live in, and Sagent is meeting the moment.”
How Warburg Pincus Accelerates Sagent’s Innovation
Sogorka: “Fiserv is still a partner for Sagent, but Warburg Pincus is the primary capital partner. As you know, they’re one of the world’s elite investment organizations, and an ideal partner because they understand the scale and speed required to power America’s $12 trillion housing market. They enable us to think big and execute on our visions to lead innovation in this space.”
We often say modernizing servicing is the last frontier of the fintech era because it’s the biggest, most complex operationally, and the most regulated. Having a lead partner like Warburg Pincus who truly understands this means we can keep going fast on making innovation a reality.
This blog features excerpts from an article about the future of mortgage servicing by R. Christopher Whalen interviewing Sagent CEO Dan Sogorka which originally appeared here in The Institutional Risk Analyst.