The Rise of Self-Service Innovation in Mortgage Fintech
As uncertainty in the market persists and forbearances continue to be a key discussion topic, servicers are increasingly focused on delivering the best self-service technology, encouraged by the success and proliferation of self-service technology during the pandemic.
Sagent Senior Director of Product Management Jennifer Johnson and VP of Software Development Shelli Girard recently spoke with Inside Mortgage Finance about how pandemic-era self-service tools increased efficiency for servicers and resolution time for homeowners experiencing hardship — notably eliminating unnecessary calls and allowing servicers more time to focus on solving more complex challenges, enabling them to give homeowners seeking guidance more granular, comprehensive support.
“When customers can engage with the loan forbearance process themselves, they don’t need to call in and speak with a representative,” Jennifer explained.
“By our estimate, that eliminates tens of thousands of customer phone calls per month, which allows customer-facing teams to focus on more complex problems.”
“Self-service tools help remove uncertainty and improve customer care for borrowers as they navigate the forbearance process. Instead of dialing a 1-800 number, waiting on hold, explaining their situation, and hoping for help, they can manage the process themselves from their mobile device.”
Back in 2008, there was no such thing as borrower self-service. The idea of a digital channel was in its infancy. The iPhone was still a few years away from becoming the must-have accessory.
When the CARES Act went into effect to provide mortgage payment relief as the COVID-19 cases spiked in 2020, servicers powered by Sagent were ready with push-button forbearances on day one of the CARES relief effective date.
“Through Sagent’s consumer platform, CARE, servicers empower their borrowers to request forbearances from any device and upload necessary hardship documentation as well as communicate with the servicer to obtain information and status of the process using secure messages,” said Shelli.
She continued, “Sagent is continually working on improving our process to make it easier for borrowers to fully self-service most aspects of servicing including the forbearance process and loss mitigation processes.”
Sagent’s default platform Tempo also provides full lifecycle functionality, enabling homeowners and servicers to work together to create sustainable options for homeowners when they’re facing financial hardship.
A key component of this service is the servicer’s ability to establish the workflow that fits their processes and makes it intuitive for homeowners to self-serve from anywhere and on any device with the ability to get real-time help from a servicing expert when they need it.
Johnson added, “In the years since the pandemic we’ve continued to prioritize self-service capabilities as we enhance and upgrade our CARE platform.”
The benefits of this innovative programming are broad reaching in addressing all aspects of loan servicing. Homeowners, first and foremost, are provided relief and resolution. Servicers achieve improved efficiency and greater effectiveness in managing compliance throughout the process.
If market challenges endure into 2024, self-service technology will continue to play a critical role in helping servicers and their borrowers navigate what comes next. Sagent ensures delivery ahead of the curve, with no waiting and no elevated risk surrounding the next set of changes and challenges coming our way in the servicing industry.