Dara By Sagent, a GPS system for the $14 trillion mortgage servicing sector 

This article originally appeared in National Mortgage News

Many of you know Sagent has been building Dara, our future-of-mortgage servicing platform which will start going live soon with America’s largest servicer, Mr. Cooper, as the first customer. For those who couldn’t make our Dara launch event at the 2024 MBA Servicing conference, I want to talk about what servicing innovation means for our industry as a whole. Let’s start by defining what kind of innovation actually changes the game. 

One Innovation Changed The World for Consumers, Businesses, Military

Most innovation talk right now is about AI, and I’ll discuss that below. But first, I want to bring in some of my military background by looking at some innovations that changed warfare, and subsequently, the world. Three key innovations that fit in this category throughout military history have been gunpowder, tanks, and the use of aviation. In each of the eras they were introduced, these innovations changed the way warfare was conducted. 

However, the one innovation that changed not just warfare, but the daily lives of just about everyone worldwide, was Global Positioning Systems (GPS) technology. GPS has changed the world for consumers, businesses, and the military. 

When GPS was introduced, it changed everything by giving us a total geolocation and time view of all operations in real time. 

After GPS was mastered in the military, it also then changed everything in global consumer and business worlds. It began before the iPhone launched in June 2007, but that’s when it really took off and consumer “location-based services” exploded. 

Today, consumers can find and get to stores or restaurants in seconds because of GPS capabilities at everyone’s fingertips. And likewise, GPS capabilities are core to helping stores and restaurants find new customers, then stay in touch with them.

Now imagine how powerful this real-time, end-to-end concept is in our $14 trillion mortgage servicing sector where real-time navigation of customer, regulatory, and investor relationships has extremely high risks – and rewards. 

A GPS System For The $14 Trillion Mortgage Servicing Sector

This is why I sometimes call Dara by Sagent a GPS system for mortgage servicing – because it changes everything by providing a complete view of all operations in real time, whether you’re a servicer, consumer, regulator, or investor. 

Innovation in mortgage servicing has been stuck for a long time. The main culprit has been different solutions addressing different, smaller aspects of core, default, and consumer servicing.  

But you cannot address all servicer, consumer, regulator, and investor requirements in mortgage servicing without having it all. 

This is why Dara has 6 primary components that cover it all: 

  • Dara Core: All the essential tools for efficient, real-time daily servicing operations and compliance at any scale. 
  • Dara Consumer: A mobile-first consumer experience for homeowners to manage every mortgage detail, solve hardships fast, and get smart human advice anytime. 
  • Dara Default: Full default suite with decisioning, automated workflows, collections, loss mitigation, claims, foreclosure/bankruptcy, and a broad attorney network. 
  • Dara Movement: Servicing data standards and document management power lightning-fast onboarding, both flow and bulk, and comprehensive bidding due diligence. 
  • Dara Data: Comprehensive views into real-time data with robust analytics across every milestone in the lifecycle, with anytime auditability and compliance assessments. 
  • Dara AI: AI embedded into Dara for doc automation, real-time predictive insights driving workflow and agent experiences, and generative AI-based chat capabilities.

2 New Ways To Help Servicers Navigate (and use AI)

How do these Dara by Sagent components help servicers navigate?  Let’s look at two examples. 

First, we’ve rebuilt the loss mitigation process to make the application easy for distressed homeowners, and seamlessly connect them to the servicer’s process. 

One root system for servicers and consumers, not disparate systems. 

This means homeowners experiencing hardships get a straightforward Q&A they can do from any device to request hardship assistance, then provide the reason, property details, and income information. Next, that comes into a decision engine and the resulting to-do lists are returned to the homeowner to resolve their request in the same interface where they began. 

Second, we are making the promise of AI real for servicers with Dara AI Docs. 

Dara AI Docs transforms unstructured collateral into digitized records and extracts data (including stamps and signatures) to enable efficient loan movement through document- and data-related transactions. 

Key use cases for this include: 

  • Efficient loan boarding at scale where you know all errors and issues in hours, not days or weeks, and have resolutions identified for your teams. 
  • Digitizing income calculations with AI trained for salary income from W2s and paystubs.

  • Automation of claim filing using extracted data from invoices for reconciliation. 

What’s The ROI For Servicers? 

These are just two examples of the exciting ways Dara is starting to help servicers navigate, which is further validated by preliminary ROI figures.

We built a way for servicers to use their own data – even if they’re not Sagent customers – to identify how Dara provides value to them specifically. 

It’s like a pro-forma where we can analyze cost per loan (CPL) across all functional areas of any servicing operation. 

To illustrate this using modeling on a benchmark servicer, Dara by Sagent can potentially lower total operational cost (measured by CPL) by as much as ~40% across boarding, cash processing, escrows, statements, call center, IA/IR, collections, loss mitigation, foreclosure, bankruptcy, claims, QA/QC, and collateral management.  

Actual ROI – as a whole and by these individual operational areas – depends on how you operate, and we would love to do this with you using your data. 

Because Dara, much like GPS, provides a full view of how to navigate – and that includes ROI analysis.  

Which Innovations Actually Change The Game? 

Just like GPS proved to be an innovation that actually changed the world, I predict the same level of changes for the servicing industry with Dara. 

Why? Because it’s not a point solution addressing one or two challenges in the full lifecycle of servicing for servicers, consumers, regulators, and investors. 

It’s everything all at once. A full, sequential view of all operations in real time, all the time.

And as I noted above, there are key components available today, and Dara at scale will start going live soon with America’s largest servicer. 

We look forward to helping you navigate – and change the industry – this year.

This article originally appeared in National Mortgage News

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