Why servicing will be key for lenders even if rates fall

Source: National Mortgage News

As mortgage rates may continue to decrease, retaining servicing rights is becoming increasingly crucial for lenders. Failing to hold onto servicing or secure recapture agreements will make it difficult to keep customers in a highly competitive market. While interest rates may fluctuate, the biggest risk lies in losing customers, not in the economic model itself.

Originators without a strategy to retain servicing will face significant challenges in navigating the competitive mortgage landscape.?

Additionally, automation and AI-driven solutions are becoming essential for improving servicing operations, especially as delinquencies rise in specific loan types and prepayments increase. The trend towards more automated functions, such as AI-powered due diligence and enhanced borrower visibility, is growing. Lenders need to adopt these technologies to stay competitive and maintain customer relationships. Retaining servicing rights remains a key strategy for lenders.

Techniecode can support lenders by providing digital mortgage solutions designed to enhance customer retention, streamline operations, and leverage the latest in automation.