As a mortgage lender, you know customer experience is key. This becomes infinitely more challenging with interim servicing. In a world where online reviews and referrals are everything, interim servicing can present some difficulties that might be impacting your business growth.
The biggest challenge? You’re being punished for something you have no control over. You’re held accountable for the actions of a third-party servicer, despite having limited influence over their processes and communication.
But, it doesn’t have to be this way. You can take control and here is how!
The Interim Servicing Struggle Is Real
Borrowers get frustrated when they get bounced around between different companies and struggle to make their payments. Let’s be honest: Nobody loves inconsistent communication, hidden fees, or struggling to set up automatic payments, especially regarding their mortgage loan. Unfortunately, this can become a common theme with interim servicing.
This frustration often translates to negative reviews and a hesitation to refer friends. It can feel like a lose-lose situation for everyone involved.
Interim Servicing and Lost Referrals Go Hand in Hand
Think about it: a smooth and positive mortgage experience makes a borrower much more likely to recommend your services. On the other hand, a frustrating experience with something as critical as interim servicing will send them running to the competition next time. In such a competitive market, you can’t afford to lose a single referral or positive review.
Let’s examine some of the challenges associated with the often-dreaded interim servicing period:
- Multiple Transfers and Confusion: Borrowers might find their mortgage loans transferred multiple times, leading to confusion about whom to contact for help.
- Difficulty Setting Up Autopay: Establishing consistent auto-pay can be tricky with multiple servicers, potentially causing missed payments and late fees.
- Lack of Personalization and Communication Gaps: Borrowers may not receive timely information regarding rate changes or other vital loan details during the interim servicing agreement.
- Negative Brand Association: Borrowers may associate the frustrations of servicing transfer with your brand, impacting future business and referrals.
The good news is that you can address these issues and transform interim servicing from a potential pitfall into a positive brand experience.
A Branded Payment Hub
What if you offered a branded payment platform that borrowers could use from day one? This platform, integrated seamlessly into your closing process, would become a central hub for all things mortgage.
Benefits of a Branded Payment Hub
Here’s a breakdown of how a dedicated payment platform helps both borrowers and lenders navigate interim servicing smoothly:
- Seamless Transition: Borrowers would continue using the same platform and login even when servicing is transferred.
- Stronger Brand Identity: The branded platform creates consistency for the borrower, reinforcing your company’s commitment to a positive customer journey.
- Convenient Features for a Better Experience: Features like mobile payment options, personalized dashboards, in-app support, and communication features would all be accessible through the platform.
- Opportunity to Build Loyalty: Providing consistent value throughout the loan’s life cycle helps retain clients and solidify your position as a trusted financial partner, leading to increased referrals.
Benefits for Your Interim Servicers & Mortgage Lenders
Now that we have explored the many benefits for borrowers, let’s talk about why this matters to you and how a payment hub empowers your business:
- Early ACH Enrollment: Offering borrowers the opportunity to set up recurring monthly ACH payments during closing is a game-changer for your business. This feature ensures timely payments and provides peace of mind for both you and your clients. This helps your business:
- Reduce risk of late or missed payments.
- Improve cash flow predictability.
- Lower administrative costs associated with payment processing.
- Decrease likelihood of Early Payment Default (EPD).
How It Works:
During the closing process, guide borrowers through a simple ACH enrollment procedure. This proactive approach sets the tone for a smooth, hassle-free loan repayment experience from day one.
- Highlight Loan Officer Value: Showcasing the loan officer’s expertise and personalized service within the hub keeps borrowers engaged and reinforces the value you bring to the table. By maintaining this personal touch, you differentiate your service from impersonal, automated alternatives and foster long-term client relationships. Using this strategy you can:
- Create personalized profiles for each loan officer, highlighting their expertise and achievements.
- Include a direct communication channel within the hub for borrowers to reach their assigned loan officer.
- Offer customized financial insights and recommendations based on the loan officer’s analysis of the borrower’s situation.
- Proactive Communication: Sending timely reminders about rate changes, refinancing opportunities, and other important information via dynamic push notifications keeps your business at the forefront of your clients’ minds.This can impact your business with:
- Increased client retention through ongoing engagement.
- Higher likelihood of repeat business and referrals.
- Opportunities for cross-selling and upselling additional financial products or services.
By providing real solutions and exceeding expectations during the interim servicing phase, you can transform borrower frustrations into positive experiences that benefit everyone.
Conclusion
Implementing a comprehensive solution that empowers borrowers, lenders, and servicers with enhanced transparency and efficient communication will improve the interim servicing experience. You’ll also increase efficiency within your organization while remaining compliant with evolving industry regulations. Remember, every interaction is a chance to make a positive impression. It’s time to change the narrative around interim servicing, transform potential pitfalls into positive brand experiences, and cultivate valuable long-term relationships.
FAQs About Interim Servicing
What is an Interim Servicer?
An interim servicer steps in to manage a mortgage loan temporarily. They handle all loan aspects until a permanent servicer is assigned, usually after a loan purchase or transfer. Their role involves receiving payments, disbursing funds for property taxes and insurance, and addressing borrower inquiries.
What is the Difference Between Interim Service and Full Service?
Interim service, in a nutshell, means “temporary,” while “full service” indicates permanence. Think of it this way; you hire someone for a short-term project (interim service) versus a full-time position (full service).
What Does Interim Mean in a Mortgage?
In the mortgage world, interim typically describes a period where a different servicer steps in to manage your loan temporarily. For instance, an “interim servicing fee” might apply.
