MortgageOrb interviewed Dahiwadkar to learn more about how technology can help servicers improve their operations and meet increasingly stringent regulatory compliance mandates.
Q: How do you see the use of technology increasing among servicers in 2014?
Dahiwadkar: Servicers should take a good, hard look at their technology infrastructure and determine where they may need to make internal changes to meet various upcoming regulatory compliance requirements, such as those required by the Consumer Financial Protection Bureau (CFPB) and other Dodd-Frank-related regulations, and get those changes set in place soon. This is an unprecedented time in the mortgage industry when mortgage servicers are or will be regulated as much as originators. The effective use of technology, such as workflow systems, is the most effective way for servicers to manage additional compliance requirements, as well as core business processes. Compliance enforcement is not possible without the help of technology. The historic approach of throwing extra bodies at the problem is no longer going to work.
Q: Why do you believe it has taken the servicing industry this long to embrace technology?
Dahiwadkar: The mortgage industry has faced many short-term, belt-tightening situations that were solved by adding extra people. It worked in the past because problems had a short life. Initially, many managers in the mortgage industry were addressing the current changes as short-term problems. Now, they have come to the realization that what has changed in last few years is the new norm. Along with the restraints of some new regulations, there are new quality control measures and more focus on managing vendor relationships that lenders and servicers will be responsible for monitoring. The use of technology will be key in all of these efforts.
The concept of how to effectively use technology has been overwhelming for many companies’ management teams. They often view technology integrations as multi-level, lengthy and expensive projects that will have a negative effect on their current company processes. Many companies do not want internal system disruptions; on top of that, employees are comfortable with the way they handle their daily routines and fear change. Read full article