What does customer for life mean when loans come out of forbearance?
Since March, mortgage forbearances have reached around 8.5% of all loans outstanding, had a brief reprieve in mid-June and now the COVID economy is once again posing risks.
A smart policy response (12-month forbearance trail, missed payments added to loan, etc.) has unquestionably eased forbearance and pressure on housing, but lingering jobless claims and COVID cases will impact on mortgage owners and managers through 2021.
This puts repairers in pole position to take care of customers during one of the most difficult times in their homeownership journey. It is also a catalyst for service modernization from a customer service, retention and engagement perspective. What works to help customers in times of difficulty also works for the rest of their ownership life.
Since Sagent makes it all right for repairers for owners, I’m sharing below answers to the questions repairers are asking us the most right now. I hope this helps you improve your customer service while remaining efficient, compliant, and increasing your MSR values in this complex business.
What is Sagent’s place in the mortgage services ecosystem?
Sagent is the technology provider powering the homeownership and consumer lending experience for 12 million borrowers and growing.
As the second largest loan management software company in the United States, we fully understand the complexities of managing mortgages at scale. We believe the time has come for repairers to show owners what real-time engagement means.
Owners, especially when stressed, need accurate, quality information and the ability to take action or get help using any device.
How can loan servicers provide homeowners with real-time engagement and a modern experience?
We all watch TV and shop seamlessly across all of our devices. We stop a program on our television and start it again on our tablet. We buy new vitamins by following recommendations made based on our previous purchases.
And when we need help, customer service teams see the same data we do.
This omnichannel and data-driven consumer experience has progressed rapidly since 2015 in originations and is now accelerating in service.
COVID has been a stark reminder to all of us of how hardship can hit borrowers out of nowhere, and we need to empower them to understand and act quickly on their options, whether that’s using their phone app or calling your support team. customer service for advice.
So far, servicers have been able to process customer hardship requests in around 7 minutes per call, with forbearances reaching around 8.5% of all outstanding mortgages from March 2 to present.
Services using Sagent have led the way in giving their borrowers targeted and actionable messaging, education, and advice based on what the borrower sees.
How did repairers using Sagent enable owner self-service so quickly during COVID?
Our methodology enables departments to configure, rather than code, systems for the constant changes they need.
This approach enables service providers to immediately adapt Sagent’s consumer-facing Account Connect suite to ever-changing markets, regulations and GSE/investor lending guidelines.
It also allows departments to quickly configure our flagship LoanServ suite to suit their needs, and all changes are pushed seamlessly to borrowers through Account Connect.
When the economic strain of COVID hit U.S. homeowners in March and April, our repairers were able to quickly add self-service (using Account Connect) to their comprehensive customer service, and also quickly adjust their systems (using Account Connect). help from LoanServ) to manage critical compliance and accounting functions as CARES and other forbearance and relief efforts arrived in real time.
What else can repairers do for owners using Sagent Account Connect?
When an owner uses their repairer’s branded version of Account Connect, they see no generic call to action. Everything is hyper-relevant to their situation and current market conditions.
Currently, a homeowner can “Click for COVID Mortgage Assistance” to explore options based on their needs.
On an ongoing basis, a homeowner may see messages regarding managing their escrow balance or updating their insurance. All of these are tailored to their profile so they can actively manage their mortgage.
The visionary part for servicers is to let homeowners actively manage not only their loan today, but all of the loan needs they have over their lifetime of borrowing and home ownership.
How can managers let borrowers actively manage their homeownership experience?
Because our real-time LoanServ data communicates directly with Account Connect, we build Account Connect as a dashboard for a borrower to manage their entire homeownership lifecycle.
It starts with the basics, like viewing loan balances, making payments, and viewing real-time amortization schedules.
It then becomes more attractive when managers can allow borrowers to model interest cost savings and faster repayment times by applying additional capital or refinancing.
Integrating rate data from your product and pricing engine allows services to present borrowers with rate and term refinance or withdrawal scenarios based on market, home improvement, debt consolidation or other opportunities – all of which improve retention.
And it’s especially important for retention if the services can give borrowers a real-time overview of their home(s), their valuation, and also allow for a comprehensive MLS search.
This is how all of us in loan servicing must redefine customer service, loyalty, and lifetime commitment.
What does it mean to redefine “customer for life” in loan servicing?
The entire credit and banking industry talks about the concept of “customer for life,” but servicing loans needs to be a bigger part of that conversation.
Think about how it works: origination, sales, and marketing teams fully engage customers up and down the funnel and close the loan, then service takes over for the life of the loan.
But it’s not just the loan life that customers have today. The service must engage customers for all the loan needs they have over their lifetime of borrowing and home ownership.
Now that software like Sagent’s has made service agents highly efficient at collecting payments, administering pounds, and managing accounting and compliance, it’s time to extend lifetime customer engagement in the ways described below. -above.
Service agents are best positioned for lifetime customer engagement, as they can use Sagent’s Account Connect borrower and property data to keep borrowers informed about their greatest asset – their home – and present relevant options to optimize their finances or even buy a new home.
If the initiators are the finders of new customers, the services must be the guardians of these customers.
How close are we to this “customer for life” vision for owners?
Right now, services have to win on customer service in this unstable COVID environment. This means quickly translating real-time regulations, relief efforts and investor guidance into easy-to-understand education and guidance so owners can make informed decisions with confidence.
This will continue through 2021. But good execution of the COVID response is also a catalyst for accelerating service modernization to finally incorporate the customer retention and engagement concepts discussed above.
When we revisit these themes a year from now, I’m confident we’ll see significant progress in the customer-for-life vision that we all share as an industry. This is a huge win for owners as well as repairers.