How to manage quality in a hot MSR market

Abstract

The combination of MSR demand, a challenging economic environment and the fact that CFPB is considering whether to propose amendments to Regulation X means MSR sellers and buyers must manage the exchange of high volumes of information in record time, without affecting quality. These circumstances are driving MSR sellers and buyers to complete bulk transfers of servicing portfolios at speeds approaching flow MSR transfers, which enables both sides to differentiate themselves in this competitive market. The key to any effective MSR transfer process is the exchange of accurate loan file information that is collected and stored in the seller's servicing system, borrower portal, reporting warehouse and document repositories. That's because most MSR sellers and buyers often spend hours having human teams review documents and reconcile data, which makes transfers slow and costly. During bulk MSR transfers, loan data is typically exchanged through data tapes, spreadsheets and documents-which make data reconciliation not only difficult, but prone to delays as well-especially when issues aren't caught early. With advanced AI-powered document automation, MSR buyers can ingest thousands of loan files, audit them for required documents, identify the most current document versions and reindex the documents to their own taxonomy. AI-based document analysis enables MSR buyers to extract key data elements during the document ingestion process to quickly compare that data to the prior lender's data extract or servicing system export.