3 Takeaways from MBA Servicing’s “Making Seamless Servicing Transfers Possible” Panel

Servicing transfers pose inherent risks to servicers and the homeowners they serve, which are amplified by the scattered, unstructured data that underpins our industry. That is why it is so encouraging to see industry leaders come together to solve these important issues, which is precisely what we saw during the “Making Seamless Servicing Transfers Possible” panel at MBA Servicing.

Sagent’s own Chief of Staff, Matt Tully, was featured on this fascinating panel, joined by:

  • John Bell, U.S. Department of Veterans Affairs
  • Adam Elaroussi, Federal Housing Finance Agency
  • Rachael Macaulay, Flagstar Bank
  • Joseph Prince, NewRez
  • Kim Weaver, Paradatec

Below are three quick highlights from the panel, including the key role data plays in the servicing industry, the importance of standardizing servicing data, and how Sagent is working to support the Mortgage Industry Standards Maintenance Organization (MISMO) workstream.

Recently, MISMO announced the creation of The Federal Housing Agency Servicing Dataset workgroup powered by Sagent. This exciting development, which came right before the MBA Servicing Conference, will see Sagent supporting MISMO to help the Federal Housing Agencies efficiently collect necessary servicing loan data to better serve borrowers experiencing financial difficulty, enable data-driven policy decisions, generate predictive analytics, and conduct oversight.

Data Is Central to Servicing

Data is the lifeblood of servicing, enabling accurate decision-making, efficient processes, and real-time customer service. Data provides critical insights into borrower behavior, market trends, and loan performance to mitigate risks and better serve homeowners. For this reason, the panelists argued, it is vital that shared data is accurate, up-to-date, and standardized.

As David Coleman, President of MISMO said when announcing the Federal Housing Agency Servicing Dataset workgroup:

“The Federal Housing Agencies recognize that data standardization is increasingly more important given that loan servicing is moving toward a fully digital model, and MISMO provides the industry-recognized forum for standards development.”

Sagent is excited to work with the Federal Housing Agencies to take an important step towards more efficient data collection, allowing federal agencies to better serve borrowers in financial difficulty, enable data-driven policy decisions, and better conduct oversight.  

Why Standardizing Servicing Data Is Important

Whether onboarding or offboarding a portfolio of hundreds or thousands of loans, verifying each loan’s underlying data is a labor-intensive process that is ripe for automation. However, without a standardized dataset, automation will be of little use as there is no common “language” for them to speak. 

In order to create industry standards for data, MISMO released a Servicing Standards Transfer Catalog (MSTC) in 2023, creating the first playbook available free to all stakeholders. The MSTC will be instrumental in ensuring compliance with changing regulations, supporting accurate data transfers, and facilitating uninterrupted loan servicing. This has led to the development of The Federal Housing Agency Servicing Dataset, announced the week before the MBA conference. As John Bell explained:

“Sharing of a servicing dataset across the Federal Housing Agencies will benefit servicers and servicing technology providers by reducing the cost and timeline to implement.”

Sagent Support of MISMO Workstream

As a leading company in fintech innovation, Sagent is dedicated to supporting the efforts of MISMO as they attempt to create new standards that will help all stakeholders in the servicing industry. Sagent’s data-driven approach to technological innovation places us in a unique position to accelerate the development of this dataset standard by supporting the workstream. 

As Chief of Staff Matt Tully described it:

“The creation of a servicing-focused data standard will help the Federal Housing Agencies to efficiently collect necessary servicing loan data to better serve borrowers in financial difficulty, enable data driven policy decisions, generate predictive analytics, and conduct oversight.”

Sagent remains committed to solving industry-wide problems through servicing fintech innovation aimed at simplifying the servicing process. By powering The Federal Housing Agency Servicing Dataset, Sagent is dedicated to ensuring greater standardization of servicing data and making the jobs of all stakeholders in the industry easier.

Next Steps

Ongoing efforts to standardize servicing data involve developing a playbook to establish clear guidelines for data ownership, location, timing, and usage. Currently, the workgroup is focused on defining the specific data elements and devising protocols for effectively sharing that data in MISMO-based formats.

The goal will be to create and maintain an Industry Transfers of Servicing Dataset (ITSD) file that:

  • Supports loan boarding and servicer-to-servicer data transfers
  • Does not become overly large and difficult to use and maintain
  • Does not become difficult to implement due to breadth and scope over-creep
  • Is a companion document to the MISMO Servicing Transfers Catalog

After this insightful panel discussion with key insights provided by some of the most impressive leaders in the servicing industry, Sagent is more energized than ever to begin work to make the goals of the ITSD file a reality and continue building the future of servicing.

 

 

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