By: Kelly O’Bannon | EVP, Business Development

Date: June 11, 2024

Lenders and loan originators, including community banks and credit unions, can significantly benefit from partnering with mortgage subservicers to outsource their loan servicing operations. Here are the key advantages of partnering with a subservicer like Midwest Loan Services:
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Expertise and Technology

Subservicers specialize in loan servicing, leveraging their extensive experience and dedicated resources to help lenders efficiently manage their loan portfolios. They employ advanced technology platforms that streamline loan administration processes, ensuring accuracy and compliance. For example, Midwest Loan Services has invested in a state-of-the-art mortgage servicing platform that integrates automated payment processing and real-time reporting. This technological edge allows community banks and credit unions to offer their clients cutting-edge services without the hefty investment in technology infrastructure.

Cost Savings

By outsourcing loan servicing operations, lenders can reduce internal operational expenses. Loan servicing can be resource-intensive, requiring various staffing, training, and technology investments. Subservicers offer a cost-effective alternative while providing high-quality service. For instance, a small community bank partnered with Midwest Loan Services and was able to cut its servicing costs by 20%, allowing the bank to reallocate those funds towards marketing and expanding their loan origination team. Our only focus is servicing your loans and providing exceptional customer service to your borrowers, which significantly eases the financial burden on smaller institutions.

Regulatory Compliance

Subservicers are well-versed in the constantly evolving regulatory landscape. They continuously monitor changes in guidelines and ensure compliance with industry standards. By entrusting servicing responsibilities to subservicers, lenders can mitigate compliance risks and focus on their core competencies, such as originating new loans. For example, Midwest Loan Services has a dedicated compliance team that keeps up-to-date with the latest regulations and ensures all processes adhere to federal and state guidelines. This is crucial for credit unions and community banks, which may not have the resources to stay updated with every regulatory change. We stay on top of regulatory change management, ensuring your operations remain compliant and risk-free.

Scalability and Flexibility

Subservicers have the flexibility to manage the changing needs of lending operations. Whether it’s managing a few loans or a large portfolio, subservicers have the economy of scale to handle varying volumes efficiently, ensuring prompt and accurate loan servicing. This scalability allows community banks and credit unions to grow their loan portfolios without worrying about the increased burden on their servicing operations. We service over 300 community banks and credit unions, leveraging our scale to bring costs down for our clients while maintaining high service standards.

Enhanced Customer Experience

Partnering with a subservicer like Midwest Loan Services ensures that borrowers receive top-notch service throughout the life of their loan. With over 30 years of experience, Midwest Loan Services is committed to delivering an outstanding loan servicing experience, built on trust, reliability, and unmatched customer service. For example, a borrower with a mortgage serviced by Midwest Loan Services can easily access their account, make payments online, and receive prompt assistance with any inquiries. This level of service helps community banks and credit unions maintain strong relationships with their members and customers, enhancing loyalty and satisfaction.

Focus on Core Competencies

By outsourcing loan servicing, lenders can focus more on their core activities such as loan origination and customer relationship management. This focus is particularly beneficial for community banks and credit unions, which often pride themselves on their personalized service and community involvement. Outsourcing allows these institutions to continue delivering exceptional personalized experiences without being bogged down by the complexities of loan servicing.

Risk Management and Mitigation

Subservicers help in identifying, assessing, and managing potential risks associated with loan servicing. This includes delinquency management, default prevention, and effective loss mitigation strategies. For instance, Midwest Loan Services provides detailed risk assessments and proactive loss mitigation solutions, ensuring lenders can minimize potential losses and maintain a healthy loan portfolio.

Improved Cash Flow Management

Outsourcing to a subservicer can enhance cash flow management by ensuring timely and accurate processing of loan payments. This results in better liquidity for lenders and a more stable financial environment. For example, Midwest Loan Services implements efficient cash flow management systems that ensure lenders receive payments on time, improving their financial stability and operational efficiency.

Take Action Today

In summary, mortgage subservicing offers lenders, especially community banks and credit unions, access to expertise, cost savings, regulatory compliance, scalability, an enhanced customer experience, risk management, and improved cash flow. By partnering with a subservicer like Midwest Loan Services, lenders can streamline their operations, improve efficiency, and concentrate on growing their business and serving their communities.

Ready to experience the benefits of mortgage subservicing? Contact Midwest Loan Services today to learn how we can help you streamline your operations and enhance your borrower experience.