Responding swiftly to market fluctuations is key in mortgage servicing operations. This case outlines a five-year transformation of a top-five North American bank’s mortgage default servicing operations. The bank partnered with Sourcepoint to optimize operations, enhance cost efficiency, access global talent, and improve customer experience through a global delivery model and innovative solutions.
Challenges
- Cost Reduction: Reduce high operational costs across 40+ default servicing functions.
- Operational Efficiency: Centralize processes, design leaner processes, and improve satisfaction.
- Regulatory Compliance: Implement fast, accurate solutions for complex regulations.
- Team Transition: Successfully mobilize a skilled team supporting multiple activities and processes of varying degrees of complexity across default servicing within a tight timeline.
- Scalability and Flexibility: Enhance scalability to handle increased loan volumes.
How we made it happen
- Establish a structured, proactive approach to engaging customers in arrears through both traditional and digital channels, to improve unmet collection metrics and strained customer relationships.
- Deploy a CRM platform that improves customer service, enhances arrears management, boosts collections, and increases operational effiency.
How FSL made it happen
- Transformation and Quality Control: We established a dedicated transformation office to oversee communication, coordinate efforts, manage timelines, and ensure alignment with strategic objectives. We also embedded quality control to heighten compliance and achieve error-free operations.
- Global Delivery Model: Transitioned processes in waves, deployed 100+ resources, scaled to 300+ FTEs.
- Quick Solution Deployment: Strategically seeded 15% of resources from existing engagements and sourced the remaining from seasoned mortgage professionals, ensuring a risk-free transition and maintaining operational continuity.
- Process Improvements: Reduced costs through targeted process enhancements and digital interventions, including the automation of 28 processes across nine verticals to improve accuracy and consistently meet state and investor deadlines.
- Closed-Loop Feedback: Identified root causes of delays and errors, ensuring robust risk oversight and minimized operational loss
Client Testimonial: “Sourcepoint has been instrumental in transforming our default servicing operations. Their innovative solutions and commitment to excellence have enabled us to achieve our strategic objectives and deliver exceptional interactions with our customers.” – Head of Mortgage Servicing
