In the mortgaging industry, the homeowner should be the utmost priority. Good service is about more than avoiding negative experiences. It’s about more than forbearances during COVID-19. It's more than pleasant and knowledgeable customer service. It’s about building the mortgaging experience around the homeowner. Providing open communication between the servicer and payment system. Giving clear and prompt answers to inquiries. Convenience.
All financial institutions servicers want their homeowners to have a pleasant experience working with them.
Especially in the age of COVID-19 and remote work, that means adapting to the times. The homeowners of today won’t be impressed with a mortgage experience from 20 years ago. People want access to everything at their fingertips.
Escrow compliance is a high risk, low reward venture. Keeping up with evolving regulations takes time and effort. And after all of that work getting up to speed? Another change in regulations could come along that sends you back to square one.
Listen to the podcast episode
The subtitle for this podcast should be All You Wanted to Know About Mortgage Servicing But Were Afraid to Ask. Most mortgages are passed off to third party servicers for two reasons. The servicers know the government regs and how to comply and they also are skilled at cutting costs. Most see mortgage servicing as commoditized and the only difference between companies is price. Enter Valon (formerly Peach Street), which puts a focus on consumer experience, customer experience, and technology.
Why do mortgages matter?
At a high level, mortgages are one of the key levers in the real estate market and integral to the homeownership dream for Americans. Whenever the majority of Americans look to buy a home, they go through the mortgage application process and continue to interact with their mortgage servicer until they payoff their loan. It’s also the largest piece of debt and obligation that the majority of consumers take out in their lifetime. So at a minimum, you can say that one of the biggest decisions a consumer makes in his or her life is taking out a mortgage and thus, is core to the American Dream.