Article Summary: Top 4 Planning Questions for Mortgage Servicers Before 2025
As leaders in the mortgage industry, Sagent team members know the importance of preparation. In a recent HousingWire article, Sagent’s EVP of Servicing Perry Hilzendeger discussed what mortgage servicers need to consider ahead of 2025.?
How prepared are servicers for the next hardship???
Perry’s first response centers around the lessons absorbed from 2020, and how servicers learned from that experience to face future disruptions to the economy. He compares today’s consumers to those of January 2020, noting that then, as now, many predict a downturn is just around the corner.?
“Mortgage delinquencies spiked above 8% briefly but then quickly reversed thanks to smart, fast policy responses and strong execution from mortgage servicers. Technology also played a significant role in readiness, delivering hardship relief to consumers through an efficient and effective experience.”?
Can servicers deliver effective responses to – and performances during – future hardships??
Perry then outlines the three lessons learned from the last housing crisis: Response Time, Execution, and Rapid Technology. All three reinforce that the industry will be able to handle the next downturn successfully.?
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Will the next hardship be isolated or longer lasting??
To best prepare for the industry’s next downturn, Perry points to the fact that current economic factors suggest it will be limited. Low unemployment and delinquency rates, for example, support this theory.??
“So far, a sharp or protracted hardship cycle doesn’t seem likely. However, as discussed above, we must be prepared for all likely outcomes. One way our Sagent customers are doing this is by proactively contacting customers who’ve experienced strain in recent years.”?
How do lenders promote loyalty among borrowers in good times and bad??
Lenders must not only nurture homeowners who will face struggles or delinquencies during an economic downturn, but also the borrowers who will remain current with their payments. Perry outlines how servicers can best serve these customers to build lifetime relationships, and you can get his complete perspective in the full blog post.?