Is the Mortgage Servicing Space in Need of a Reset?

MortgageFlex has published a new white paper entitled, “The Evolution of Modern Servicing Software: Why industry disruption from the inside is changing how the mortgage servicing industry operates,” where it is suggested that it’s not technology that leads to disruption, but rather the mortgage servicers that put it to use.

“Plenty of vendors will tell lenders and servicers that they are disrupting the industry, but that’s not really how it works,” said Craig Bechtle, COO of MortgageFlex Systems, and author of the white paper. “After years of outside fintech firms coming into the space with promises of widespread industry disruption, only to offer poorly architected software built with little understanding of our compliance requirements or existing ecosystem of partner relationships, the industry is tired of the idea. But that doesn’t mean they wouldn’t love to be the disrupters.”

Bechtle says mortgage servicers know the industry is in need of a reset, and industry disruption may be the only way to meet the government’s new requirements, but without the right software their hands are tied. To disrupt an industry like mortgage servicing, servicers need the right technology. When they get it, disruption will happen quickly.

“Mortgage servicers won’t use something that doesn’t work,” Bechtle said. “But if it truly allows them to create the kind of servicing business they want in a fully compliant manner, they’ll come on board quickly.”

The white paper doesn’t focus on the technology the company is bringing to market, but what mortgage servicers must be willing to do with it to disrupt their industry and get maximum benefit from the platform. Bechtle says the conversations the company is having with mortgage servicers tells him that they are ready to take action, and build stronger businesses.

As COO of MortgageFlex Systems, Bechtle is responsible for overseeing daily operations and the management of strategic product and business development efforts. He joined the company in 1999 as VP, Product Management, and was responsible for the management and development of the LoanQuest product line. A seasoned tech exec, Bechtle has more than two decades of management, technical product and services experience and project management expertise, and has held Director and VP positions at Fiserv and PNC Mortgage.

“As we work to add more advanced technology to our platforms, such as AI and machine learning, we’re beginning to have more conversations about how best to deploy these tools to ensure that we don’t propagate unintended bias and avoid compliance errors” said Bechtle in the white paper.