On June 19, 27 members of our Mortgage Servicing Collaborative (MSC) met in person for the third time in Washington, DC, to discuss the focus and framing of our next body of research on data standardization, hear from guest speakers on key challenges in servicing and Ginnie Mae’s 2020 plans, and to discuss ideas for the fifth work stream on the future of mortgage servicing.
To frame the discussion for the day, MSC members heard from FHFA on the results of their recent Mortgage Market Survey. The survey was the first step in a multi-year effort to improve liquidity, efficiency, and the borrower experience in the servicing industry. Overall, there were no huge surprises in the results. There was a strong desire among participants to see alignment around federal, state, and investor servicing guidelines.
HFPC staff updated MSC members on the framework for the fourth work stream focused on data standardization. MSC members decided to form a subcommittee to work stream 4 to review and address:
- What are current data standards, if any, that exist today?
- What problems and gaps exist in today’s framework?
- What common terminology and data definitions should be explored?
- How do errors during servicing transfers impact borrowers
Over lunch, MSC members heard from Michael Bright, EVP and Chief Operations Officer with Ginnie Mae. Mr. Bright previewed the Ginnie Mae 2020 goals of complete agency modernization and offered an overview of efforts to bring foreign capital to the U.S. housing market, a part of Ginnie’s charter.
Finally, we discussed the framework for the fifth work stream which will look at mortgage servicing’s future. Ideas were solicited and brainstorming among MSC members included:
- Looking at the issue of borrowers lacking the ability to choose who services their loan.
- Reexamining the servicing compensation model particularly for non-performing loans.
- The role of FinTech in servicing and whether there are best practices for efficiency in the system.
- Doing a 10-year review of servicing and identifying key pain points in the system that harmed consumers and what lessons were learned.
The MSC convening concluded at 2pm ET