Market Overview

NTC: Servicers Must Consider Costs Over Entire Life of Loan


The industry must cut costs, but to do so will require an examination
of the entire loan lifecycle

Mortgage loan servicers will find it difficult, if not impossible, to
lower their costs if they fail to consider a life of loan timeframe in
their cost analysis, according to executives at Nationwide Title
Clearing, Inc (NTC), the leading post-closing services provider for the
nation's largest financial institutions, investors and servicers. Too
often, the company said, servicers are evaluating budgets on a monthly,
quarterly or annual basis, which obscures some of the costs the servicer
will incur over the life of the loan. A better cost analysis is required.

"Now that the servicing business is once again offering good value to
financial services firms, there is a strong drive in the industry to
reduce costs and maximize profits," said Michael O'Connell, Chief
Operations Officer at NTC. "If servicers fail to consider their costs
related to insufficient or redundant processes over the entire loan
lifecycle, they run the risk of incurring unnecessary additional costs.
This happens when they pay for the same services multiple times across
different loan events and when they must manage multiple vendors to
complete the same work. We can help them avoid those problems."

O'Connell said that solutions exist to help services reduce costs over
the life of the loans they service, but making such an investment before
fully analyzing the costs the servicer is actually incurring doesn't
make sense. A life of loan cost analysis should be performed, which will
inform management and make setting a new strategy easier and less risky.
Once that is complete, choosing partners that can provide a bundle of
services priced over the life of the loan will reduce costs, both for
the services required and vendor management.

For example, following the successful opening of its new 32,000 square
foot File Services facility, NTC launched a bundle of core services to
support life of loan collateral obligations. This allows servicers to
effectively lower the overall cost of servicing while strengthening
quality and compliance. It also has resulted in the elimination of
redundant tasks and the expense of multiple parties working or touching
the same collateral files with similar objectives.

NTC has successfully established a Life of Loan service platform built
upon expertise, knowledge and experience that reduces redundant tasks,
controls data entry points and, most importantly, is paperless after the
first touch of the actual collateral. NTC bundled services typically

  • Document Intake
  • File Creation
  • Imaging/Indexing/Inventory
  • Secure Collateral Storage
  • Final/Trailing Document Processing
  • Collateral File Audits & Remediation
  • Exception Curative Processing
  • Exception Tracking
  • Side Letter Management
  • Default Collateral Management
  • Assignment of Mortgage/Allonge
  • Lien Release Processing

"Mortgage servicers are experts at managing budgets and mitigating
risk," said NTC CEO, John Hillman. "But the pressure to perform in a
difficult environment often tasks leaders with managing to the quarter
or the month. These short timeframes do not reveal life-of-loan costs
that add risk and lower company profits. I'm very pleased that our team
is working with more servicers to help them get a broader view of their
businesses so they can be more effective at reducing costs and lowering

To find out more about NTC's life of loan collateral obligations
offerings or to get started on your own life-of-loan cost analysis,
contact the company today.

About NTC

Nationwide Title Clearing, Inc. (NTC) was founded in 1991 and has grown
into a national leading post-closing services provider for the
residential mortgage industry. NTC provides a wide range of services to
the nation's top mortgage lenders, servicers and investors as well as
various government entities. NTC's mission is to deliver Life of Loan
services with the highest level of accuracy partnered with the mortgage
banking industry to protect homeowners while also preserving the
integrity of the nation's land records. For more information, visit the
company's website at

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