For subservicers, an uptick in transfers next year as lenders release more servicing or consolidate could make their work more complex, and costly.
Subservicing work might be more complicated because clients that retained historically, and are starting to sell, will only need subservicers to handle their servicing in the short-term, from after origination until it is sold.
“A transfer, depending on where you sit, may or may not be good for your business,” said David Vida, executive vice president at Specialized Loan Servicing, a subsidiary of Computershare.
So can companies make money as an interim servicer?
“People need to pay you the right amount of money to board and de-board a loan. That’s where automation, technology, and a smart process make a huge difference,” said Vida. “It’s a thin-margin business. Our challenge is how to provide a strong customer experience while spending less money.”