Regtech Deal Delivers Automated Compliance for Mortgage Servicers

Sagent, a fintech company modernizing mortgage and consumer loan servicing for America’s top banks and lenders, announced a regtech partnership with Bizzy Labs to automate compliance, lower operational costs, and improve borrower experience for servicers.

Sagent and Bizzy will jointly offer Libretto, an AI-powered compliance engine that ensures fast, accurate servicing onboarding, then continually scans portfolios to identify and fix data anomalies using over 600 business rules from regulators, investors, and top servicers. This reduces compliance risk, increases loan valuations, and ensures customer happiness.

“This new automated compliance engine accelerates Sagent’s consumer-first modernization of mortgage servicing,” said David Doyle, EVP of Business Development at Sagent. “Clean onboarding and continuous portfolio surveillance mean fewer errors and happier customers. Servicer errors can erode profitability, rattle customers, and lower retention. Sagent’s Bizzy Labs partnership ensures servicers get the experience right for their customers and their bottom line.”

Servicer profitability can further erode when compliance costs rise as COVID-caused forbearances mature into loss mitigation scenarios. Most costs are from adding audit/QC teams to monitor portfolios and adding customer service teams to handle increased error inquiries. This compounds when regulations tighten with political cycles, so AI-powered compliance is the right servicer solution at the right time as it can power an increase in loans serviced per employee (LPE) by as much as 30%.

“We’ve been refining our AI to solve data integrity issues for the last nine years as a prominent servicer/subservicer,” said Gagan Sharma, CEO of both Bizzy Labs and servicer/subservicer BSI. “The result is Libretto, a digital approach to loan file perfection that’s reduced error rates by 80% and borrower complaints by 50%. It runs 600+ investor and regulator rules on portfolios to deliver precise, department-specific checklists for resolving customer loan issues daily.”

After Sharma’s team refined Libretto using BSI’s own portfolio plus portfolios they service for lenders throughout the U.S., they spun off Bizzy Labs as an independent big data regtech company to serve America’s top servicers and investors.

Partnering with Sagent makes Bizzy’s cloud-based Libretto immediately available for the millions of loans Sagent powers for servicers, and its full APIs make it easy to integrate to all platforms.