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It’s been an exciting three months since we launched LoanLogics IDEA™ for MSR Transfer, a new solution that automates document processing and data extraction for mortgage servicers and banks when acquiring mortgage servicing rights (MSR).
Since then, we have been busy bringing on new clients to help minimize some of their operational challenges managing the receipt of data and documents from their sellers. President and Founder for Marlin, Andrew T. Weber, spoke with me about the challenges present in MSR acquisition as a whole, during a February LoanLogics podcast series titled “Friction Free B2B Mortgage Commerce.” You can listen to it on the LoanLogics website.
Because of the great need for automation in MSR transfer, our sales team has been active talking with buyers of all sizes about how IDEA for MSR Transfer can bring the speed, standardization and accuracy that has been absent from most current acquisition workflows.
To amplify the message that LoanLogics is here to help with new technology, I recently caught up with Tony Garritano, industry journalist, researcher, speaker and founder of The Progress in Lending Association & its daily newsletter. In his latest podcast, The Lending Buzz, he and I spoke in detail about the:
Current landscape of the MSR market
- Refinancing activity and the cyclical nature of the market are triggering originators, particularly smaller ones, to sell MSRs as a means to gain more access to capital.
Obstacles buyers and sellers face during the transaction
- Sellers generally want to optimize the value of MSRs but this becomes increasingly complex as the number of buyers with different requirements for document types, taxonomy and stacking orders and such grows. Sellers have a tight window of time to deliver these files in a way the buyer wants to receive them, delays and errors can impact seller profits.
- Buyers, unfortunately, are used to the inconsistency and lack of sophistication of sellers. They too lack tools to complete the tasks using automaton. Instead, they add staff to manage the volume and complete the transfer, which again adds to the errors and delays that impact the borrower experience.
General strategy to improve the process
- There is an overall lack of standardization and technology in MSR acquisition, which creates a tremendous amount of friction. It is the job of industry vendors, like LoanLogics, who have experience and automated solutions in this space to make sure the commerce between counterparties is as friction free as possible.
Ways LoanLogics is addressing these pain points with new technology
- LoanLogics IDEA™ for MSR Transfer helps buyers perform critical document checks, configures the loan file into the right stacking order and taxonomy, then performs data extraction on the key data points required for accurately onboarding and servicing the loan.
- For sellers, IDEA for MSR Transfer has an intuitive interface to drag and drop files to the buyer without the need for a lot of up-front labor-intensive work.
LoanLogics MSR market experience
- For over ten years we have been an industry leader in mortgage doc processing, now working with a large percentage of the industry’s top MSR buyers and their sellers through an integrated, automated network that facilitates a reliable, high quality transfer process..
Goal to eliminate delays, improve the borrower experience & reduce labor costs
- By adding automation to MSR acquisition, it eliminates delays and errors instantly. With tools like IDEA for MSR Transfer, human operators are only needed to manage exceptions. It is straight through automation where you can track the process from inception through delivery to support acquisition.
Checkout this important 12-minute audio conversation between the two of us here.
And, in case you missed it last week, we announced an affiliate of Sun Capital Partners has acquired LoanLogics. By partnering with a leading private investment firm such as this, we are poised for growth. Part of that includes additional investments we’ll be making to create the premier investor network ecosystem for digital loan commerce,
After you have a listen to the podcast, reach out to LoanLogics to talk with our team further about our exciting new acquisition and IDEA for MSR transfer at loanlogicsinfo@loanlogics.com
