Top 10 Questions About Mortgage Subservicing
As a mortgage lender, your credit union has a lot on its plate from deal sourcing, new loan boarding and escrow administration to monthly billing and payment processing. There is, however, the option to outsource these and other mortgage servicing activities to a skilled subservicer. By taking these operations outside of your credit union you can free up valuable time and resources and instantly gain access to a broad range of mortgage experts, opening doors to take on a wider range of mortgage products and ultimately serve your members better.
Sounds pretty good at first glance, but we wanted all the facts. For a credit union that has never done any outsourcing of mortgage servicing, what are the key issues to consider in order to figure out whether it might be a good fit?
We turned to subservicing expert David Allison of Dovenmuehle Mortgage, Inc. to get the 4-1-1 on mortgage subservicing with these top ten most asked questions:
- What is the basic difference between servicing and subservicing?
- What specific services are provided under a subservicing arrangement?
- How much does all of this cost and how does this cost compare to typical in-house mortgage servicing costs?
- What are the other primary benefits of outsourced servicing?
- What functions are not included in a subservicing arrangement?
- Can our members continue to make their monthly mortgage payments at the credit unionâs branches?
- Do members also have on-line access to their mortgage loan information?
- What staff do we need to retain to support the subservicing relationship?
- How long is the typical subservicing contract?
- How long does it usually take to set-up a new subservicing relationship?
I guess youâre probably a little curious as to what the answers are now, right? Donât worry, we got âem all on tape (or mp3 rather)! Listen to the free podcast with David to get the lowdown.
Post written by Kirstin Hemsteger, Marketing Manager, NAFCU Services Corp.