A Blueprint For The Future of America’s $13.9 Trillion Servicing Industry

This article originally appeared in MortgagePoint Magazine

Over the last three decades, I’ve been fortunate to have the opportunity to build and lead large-scale mortgage servicing and origination operations in bank and nonbank organizations. So when the prospect to join Sagent presented itself in early 2023, it felt like a very natural next step: to bring servicing operations expertise to the software space and help deliver on Sagent’s vision to build the future of America’s $13.9T mortgage servicing ecosystem. Powering the future with sophisticated yet simple software must start with these 3 principles that servicers of all sizes care about most: 

  • Creating a world-class Customer Experience for the entire life of the loan.
  • Driving Cost Control, not just in the price of software, but through tools that lower overall operational cost. 
  • Strong Compliance in an ever-evolving and real-time regulatory environment.  

And there are 2 critical areas of functionality that make these 3 principles a reality:  

  • A Single User-Experience (UX) and Data Architecture providing a consistent interface for all users and unified data across the entire system. 
  • A Cloud-Native, Open-API ecosystem giving servicers operational flexibility to manage easy and inexpensive integrations.  

This is the blueprint guiding Sagent’s strategy to transform our industry, and here’s how we’re making that happen.

Single UX/Data Architecture

The idea of – and demand for – a single UX/data architecture platform in the mortgage industry is not new. A unified platform means end-to-end operability, unified maintenance, and configuration. And a single solution is, by nature, better suited and configured for real-time compliance with real-time policymaking.

So what does this really mean? 

  • End-to-end data for the entire loan lifecycle all at the user’s fingertips
  • Comprehensive data analytics that provide real-time visibility for homeowners and associates
  • Change Management that deploys more rapidly and with greater effectiveness aligning with customer expectations and the continually evolving regulatory landscape

This is technological change that creates a world-class experience for the homeowners throughout the life of their loan, and drives stronger retention and greater recapture. 

Our vision for a completely end-to-end servicing platform is essential to our industry, and is what drives our actions to realize this vision.

A Cloud-Native, Open-API Ecosystem

We know change of this magnitude is not easy, but delivering for our servicing customers on customer experience, cost efficiency, and compliance — today and tomorrow — is our mission and commitment. 

And that’s where an open ecosystem comes into play.

Sustainable innovation becomes nearly impossible if you’re working with legacy technology that is not cloud-native and API-friendly.

The most topical example of this is Artificial Intelligence (AI) and large Language Learning Models (LLMs). AI and LLMs have the potential to supercharge servicing operations, but taking those ideas from theory into practice can’t happen without cloud extensibility and interoperability to power it.

Sagent is mortgage servicing’s first and only cloud-native software platform. So, what does that mean for servicers?

More Powerful, Cost-Effective Technology and Operations

Servicing technology should make your tech investments go farther and generate greater cost control in IT and operations.

Sagent’s systems emphasize optimizing efficiency for the day-to-day user, and also for the system administrator who can react to changes in real time:

  • More efficient operations with fewer ancillary apps to manage
  • End-to-end, real-time data makes it easier to configure (rather than code for) real-time compliance
  • Configure your processes to fit your team’s unique needs across core, default, and consumer servicing
  • Intuitive UI/UX which reduces employee onboarding ramp time and significantly increases customer retention

This can drive significant operational efficiencies, with certain Sagent-powered servicers seeing cost-per loan well below MBA industry averages last year – with the most efficient customers seeing as much as 39% lower cost per non-performing loan and 67% lower cost per performing loan. 

All of this means lower cost across the operation and throughout IT, where the former truly drives competitive advantage.  

Better Homeowner Engagement, Retention, and Satisfaction

A better homeowner experience begins and ends with a simplified process. One that is intuitive and provides for effective self service. This means applying all the do-it-on-your-phone activities that consumers already experience in many other industries and falls right in line with what Sagent offers today with CARE, our mobile-first consumer platform. 

It means providing the homeowner with tools to handle things quickly on their own when it’s most convenient for them, with the option of real-time human support when a little more expertise is required. This is the type of interaction that facilitates long term customer relationships, nurtured, grown and retained thanks to a world-class experience.  

This is another reason why some Sagent customers report retention rates that are multiples higher than MBA’s industry average of 15% last year.

Real-Time Innovation for Real-Time Policymaking and Compliance

Real-time data across all platforms is foundational to aligning and keeping pace with today’s compliance and policy changes. With built-in control features and open API, cloud-based platforms, access can be available to everyone: customers, associates, investors, and examiners at the touch of a button.

We’re in the trenches every day with some of the biggest servicers in the U.S. collaborating to streamline old processes, iterate, and augment to create efficiencies that drive down operational costs and provide an exceptional experience for homeowners — all while staying on top of every compliance detail.

A unified servicing platform in an open ecosystem is how Sagent is building the future of mortgage servicing. This also optimizes loan movement and easier onboarding and offboarding. 

It’s how we’re driving better retention and delivering a remarkable, intuitive customer experience for homeowners. It’s also how we’re empowering our customers to engage their trusted third-party integrations to customize their servicing tech. 

And it’s how we’re powering real-time compliance in step with real-time policymaking.

Sagent Makes Sustainable Innovation Easier

Improving servicing technology is no small task. Scalable, sustainable innovation is difficult to implement. 

But staying put is not an option. And what price do you pay if you don’t adapt?

Troubleshooting pain points and inventing workarounds across legacy infrastructure and ancillary systems is hard. Losing 3 out of 4 servicing customers to a competitor is unacceptable.

That’s why Sagent offers this blueprint for the future of servicing. A future where we do the difficult and hard for you, so you can focus on today’s wins knowing you’re also prepared to win tomorrow.

This article originally appeared in MortgagePoint Magazine

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