Ginger Ellis, Members Mortgage Services, Vice President of Sales and Marketing
gingere@mms.coop | 1.866.441.4447 ext. 273 | mms.coop
Your Credit Union has originated the mortgage, and whether you’ve chosen to portfolio the loan or sell it on the secondary market, the work has just begun. Servicing a mortgage correctly is complex. Credit Unions who service loans internally continually face the challenge of managing mortgage portfolios efficiently while maintaining staff and administration required for mortgage servicing standards.
In January 2022, the Mortgage Bankers Association (MBA) estimated that the average cost to service a mortgage loan was around $163 per loan per month, with technology costs and other fixed expenses accounting for 55% of that expense. What if you could take those fixed expenses, plus the daily tasks of collecting payments, managing escrow accounts, troubleshooting customer inquiries, handling loss mitigation, and ensuring compliance with regulatory requirements and give them to a sub-servicer? Better yet, a servicing CUSO that relieves you of the fear of member poaching? Sounds pretty good, doesn’t it?
Here are the top five reasons your Credit Union should consider a sub-servicing partner.
- Allows your Credit Union to focus on core competencies.
By entrusting mortgage servicing to a dedicated mortgage servicing staff, your Credit Union can redirect resources and expertise toward core competencies such as member engagement, community outreach, and innovative financial solutions. This allows you to focus efforts on growing mortgage originations and managing relationships with your members.
- Whether your Credit Union has a handful of loans or a vast portfolio, sub-servicing can be very cost efficient.
Rather than investing in the infrastructure and technology required for mortgage servicing, your Credit Union can leverage economies of scale offered by sub-servicing your mortgages with a trusted CUSO. This can result in lower operational costs and improved profitability while maintaining a high-level of member service.
- It is a scalable, flexible solution.
As mortgage portfolios grow, it can be challenging to scale servicing operations accordingly. Sub-servicing provides the flexibility to adapt to changing volumes without the need for substantial shifts in staffing and infrastructure. By partnering with a Credit Union focused servicer, you can leverage cutting-edge technology and analytics to streamline operations and enhance the borrower experience without bearing the full cost of development and maintenance.
- Regulatory compliance and risk management are at the core of what the sub-servicers do.
Sub-servicers specialize in navigating the complex regulatory landscape of CFPB, RESPA, and the GSEs, ensuring loans are serviced in accordance with applicable laws and regulations. This reduces the risk of compliance violations and associated penalties for your Credit Union.
- Dedicated mortgage staff offer unmatched knowledge base.
Mortgage specific sub-servicers know the mortgage business. They can readily assist your members with complex questions and special circumstances that might arise. When payment assistance is needed, a sub-servicer can expertly educate borrowers on various options to help preserve home ownership. When you partner with a mortgage CUSO for sub-servicing, you can relax knowing your members are taken care of by knowledgeable mortgage professionals dedicated to delivering the Credit Union cooperative principles.
Credit Unions must continually explore opportunities to optimize operations and enhance member value. Sub-servicing mortgage loans offers a compelling avenue for achieving these objectives, enabling Credit Unions to streamline processes, reduce costs, and mitigate risk. Freed from the burdens of day-to-day servicing tasks, Credit Union staff can devote more time and attention to understanding members’ needs, providing personalized guidance, and delivering exceptional service at every touchpoint. Ultimately, mortgage sub-servicing with a CUSO allows Credit Unions to concentrate on what matters most: building strong relationships with their members.
Members Mortgage Services helps you maintain the relationship with your members through the loan process and after closing, while providing a full array of mortgage products; a customized, best-in-class mortgage origination experience; access to the secondary market with co-branded servicing; and protected portfolio loan sub-servicing.
Members Mortgage Services, LLC is a Midwest mortgage CUSO licensed and authorized in Nebraska, Kansas, Missouri, Iowa, Oklahoma, Arkansas, Colorado, Illinois and Texas. NMLS #760008. Equal Housing Lender.
