Posted by 101livescan on 11/12/13 1:17pm
Msg #492408
Lending Staffing Model will focus on higher educated LOs
From the National Mortgage News 11/12/2013 (LIKE 11,12,13. It's a breeze to date stuff today!)
The servicing industry has witnessed unprecedented changes during the past several years and there is much more to come. While noble in seeking to improve outcomes for homeowners, the new CFPB regulations being implemented in January 2014 have yet to be tested and interpreted in a real world setting.
These new requirements and potential penalties will leave no servicer untouched. Servicers must find ways (and fast) to prepare their businesses for these changes. One solution is for servicers to capitalize on the slowdown in loan originations and adjust their staffing models to focus on college-educated originators and transition them into successful careers in the servicing field.
Employees with previous mortgage origination experience are well-versed in the state of the industry as well as compliance procedures, current regulations and bankruptcy code. The lending space is full of ever-changing rules and laws that differ state to state. An experienced originator will be able to leverage their previous job experience and training to keep within the rules.
Further, servicers who can utilize numerical skills to calculate yield and ROI as they essentially re-underwrite delinquent loans can better analyze resolution strategies such as modifications and refinances and how they affect both the borrower and the investor. Every loan is different and every borrower faces specific circumstances that are unique. This reality means that the best course of action may not be output of a complicated decision matrix or algorithm; it may require practical consideration of situational nuances that only an experienced professional can apply.
Heavily investing in ex-originator staff provides resources to build the strong relationships with borrowers needed to reach productive and compliant resolutions from seemingly impossible financial situations. We believe that end of the refinance boom could prove to be a blessing in disguise for many origination employees and servicing firms that are open to making meaningful changes to survive and thrive in the mortgage environment of 2014 and beyond.
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