Reduce Costs and Unnecessary Risks using Technology in Tax Servicing

Reduce Costs and Unnecessary Risks using Technology in Tax Servicing

We all know that use of technology has already taken roots on the loan origination side of the business, but we are now seeing technology being applied slowly but steadily for mortgage servicing tasks as well. The Fannie Mae CEO, in a recent article, mentioned that they too are now devoting attention to mortgage servicing tech.

It’s time for all mortgage servicers to look beyond the current legacy systems and identify more suited technology for specific tasks. One area that they spend an inordinate amount of time today is in keeping track of the thousands of overlapping taxing jurisdictions spread across the country, and ensuring that taxes are paid, and contacting the municipalities to understand overdue amounts and penalties when they are not. Moreover, when it comes to tax servicing, commercial portfolios are much more complicated than residential ones, due to the high loan amounts and multiple parcels. Unlike residential mortgage loans, where one or more taxing authorities will assess taxes against a single property, one commercial loan can contain multiple properties with their own specific real estate tax requirements, potentially spread across multiple locations. Hotel chains, for instance, may take out large commercial mortgage loans on properties in many different states. This also requires the servicer to track taxes in multiple jurisdictions and apply them to a single loan in their portfolio. Legacy systems today are typically able to provide data down to the loan level only, whereas servicing commercial loans requires a platform and software that can access data down to the property level, and maintain payment due dates, etc. Also any miscalculation of amounts, or unpaid amounts, can have a considerable financial impact

As mortgage servicers become consumed trying to manage these intricacies, they are diluting their core focus of helping customers and delivering superior customer service. Instead it is better for them to take advantage of technology platforms which are customized for real estate tax servicing, and which collect and maintain updated tax information from counties and cities, and which can handle tax servicing for small to large portfolios, and are also cost effective.

SLK Global Solutions is one such business process transformation company specializing in mortgage servicing solutions and has the right technology and solution for servicers to reduce unnecessary risks in real estate tax servicing, while saving costs. RETS (Real Estate Tax Service), a single instance web based real estate tax servicing platform is built to meet critical real estate tax servicing requirements for commercial and residential portfolios. It covers full service escrow & non-escrow reporting, payment processing, delinquent letter service, delinquent tax search, and delinquent tax tracking. Moreover, the platform’s unique abilities to offer a flexible payment structure, customization based on business needs and upfront visibility of delinquent portfolios is being utilized by 2 of the top 5 U.S. Commercial and Multi-family Servicers.

SLK Global also delivers customizable services and technology driven products to other industries such as banking, cards and payments, lender placed insurance and title insurance using its pool of 3,000+ professionals. Since 2001, it has serviced 100+ US-based customers from its ISO 27001:2013 (Information Security), ISO 9001:2015 (Quality), SSAE (SOC 1&2), PCI DSS V3.2, ISO 22301:2012 (Business Continuity), HIPAA & Reg AB certified locations across U.S., Philippines and India.

To know more, write us at info@slkgroup.com and schedule a discussion today! You can also visit our website at http://www.slkgroup.com/global

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Fed Raises Mortgage Interest Rates and Projects Three More Hikes in 2018 & 2019

Rates expected to upsurge to 4.6% in 2018 and over 5% in 2019 and 2020

Fed Raises Mortgage Interest Rates and Projects Three More Hikes in 2018 and 2019.

2017 has been quite a ride for Mortgage Interest rates in the US. While some months, saw a decrease in rates, others saw an increase owing to the rate hikes by the FED. The US economy saw the third interest hike of 2017 with the Federal Reserve raising interest rates by a quarter of a percentage point on Wednesday (Dec 13) and is projecting three more hikes in 2018 and two more in 2019. Also, according to a recent Housingwire article, top economists at the Mortgage Bankers Association (MBA) predict purchase mortgage volume will grow, while refinances will decrease as interest rates continue to rise. Mortgage interest rates are expected to upsurge to 4.6% in 2018 and exceed 5% by 2020.  This does raise a question about borrowers’ ability to handle growing rates as well rising home prices. MBA economists commented that this gap is short lived.  With respect to house prices, a stabilization is expected but not a decrease. They also foresee a trend where a growing number of companies will plan to raise wages to attract qualified candidates moving forward. Borrowers will therefore be able to handle those higher rates thanks to higher wages.

However, the scenario for lenders doesn’t seem easy. With the expected rise in Mortgage rates, the overall origination volumes will see a decline. As a result, managing origination costs in times of declining volumes will lead to margin pressure. Also, a low inventory of new homes is sure to drive stiff lender competition. In order to sustain, lenders will have to deliver enhanced borrower experience without an increase in their fixed cost. Faster turn times, lowering costs while at the same time improving quality control will become key.

SLK Global Solutions, a business process transformation company specialized in end to end mortgage solutions driven by disruptive technology offers MmaaS – Mortgage Management as a Service, a modular end to end mortgage assembly line solution that can enhance customer experience, lower cost to fund, and accelerate loan processing while at the same time improve quality control with zero tolerance compliance. Established in 2001, SLK Global has been supporting the top originators and servicers in the country including 4 of the top 25 US Banks. Backed by strong domain and process expertise, their monthly transactions sum up to processing, pre and post underwriting approaching $1 Billion. In addition, the company is also certified with ISO 27001: 2013, ISO 9001:2015, SSAE 16 (SOC 1 & SOC 2), PCI DSS V3.2, ISO 22301:2015 (BCP), HIPAA & Reg AB.

SLK Global’s expertise in delivering customizable services and technology driven products expand to other industries as well, such as Banking, Cards and Payments, Lender Placed Insurance and Title Insurance. To know more, write us at info@slkgroup.com and schedule a discussion today! You can also visit our website at http://www.slkgroup.com/global

The Home Equity Line Of Credit (HELOC) Originations are set to Increase by 30% Along with Home Prices

property search solution for ownership and lien reports

According to the recent report released by TransUnion at the Mortgage Bankers Association’s 2017 Annual Convention and Expo, the number of consumers who originate HELOCs are expected to double over the next five years.

After the housing market crashed in the last decade, the homeowners have been extremely conservative with their housing debts. After the recession, HELOCs usually upsurge and plunge along with the home equity deviations, however that did not happen. There was a significant pullback in lending, as banks considered the loans too risky and too difficult to originate, given the stricter underwriting guidelines that were implemented. Due to lesser demand in the market, some of the lenders just got out of the business and the borrowers did not have the equity because the home prices had fallen.

However, the tables have turned now. The TransUnion report states, around 10 million consumers are expected to take out a HELOC from 2018 to 2022, doubling the count of 4.8 million consumers who took out HELOCs from 2012 to 2016. In the recent report, TransUnion projects 1.4 million new HELOC borrowers in 2017 & 1.6 million in 2018, which would be a 30% increase from previous two years of 1.1 million in 2015 and 1.2 million in 2016. Growing home prices and increase in home equity is beginning to fuel higher interest in HELOCs.

While lenders are getting back in the game to make up with the businesses they have lost in the refinance market with the new updates/forecast of the industry with HELOCs. In order to cash in on this market trend and satisfy their lender clients, Title Agents, must be able to deliver Title Searches across the nation using a robust network comprised of online databases and nationwide network of abstractors, as well as deliver at unbeatable turnaround times while maintaining 100% accuracy”. To meet lender’s expectations without an increase in fixed costs, Title Agents can leverage service providers who have the right mix of domain expertise and technology.

SLK Global Solutions’ flagship product SmartProp®, a technology enabled property search solution for ownership and lien reports delivering property reports within 4 hours*. This web-based platform offers nationwide reach in placing and tracking of orders, assures quick transactions with complete visibility of the changing order status and can be integrated with leading title production platforms like ResWare™ too. In addition, SLK Global’s suite of products also includes SmartTrak®, a technology enabled solution for municipal lien search and property tax reports backed by a financial guarantee.

Title Agents can simplify their operations with one partner who delivers both property search and tax searches with SLK Global Solutions proprietary technology enabled platforms SmartProp® & SmartTrak®.

To learn more visit: http://www.slkgroup.com/global/global-solutions.php#banking-2 or write us at info@slkgroup.com and let us know your thoughts on the above.

 

*For online COS orders only.

 

The Right Property Search Solution for Title Agents

Property Search Solution for Title Agents

With the impulsive market conditions and heavy influence of technology, Title agents are expected to cater to the varying demands of their lender clients in aggressive time frames, meeting compliance norms. The inability to cope up with the changing dynamics of the Title Industry has impeded their overall business, impacting margins across operations. In order to move towards digitization and technology implementation, Title agents/agencies are certainly looking for new ways to reduce costs at enhanced levels of quality and service.

Considering these challenges, SLK Global Solutions; a comprehensive provider of technology driven solutions for the Title Insurance & Tax, Mortgage and Banking industry has introduced a technology enabled property search solution, SmartProp®. This solution is applicable for Title Agents, Underwriters, Attorneys and Investors for Loan Processing, Default Servicing & Portfolio Purchase and Sale.

SmartProp® is a technology enabled property search solution for ownership and lien reports that specializes in delivering property reports in just 4 hours*. It offers a web based platform with nationwide reach for easy placing and tracking of orders, assuring quick transactions with complete visibility of your orders.

 

The SmartProp® Advantage:

  • Get property reports delivered in just 4 hours* ensuring 50% faster turnaround time than your competition
  • Place orders anytime, anywhere with complete visibility of order statuses
  • Access multiple online databases and a large abstractor network with nationwide coverage at no additional investment
  • Easily integrate with leading title platforms like ResWare™ for a seamless order to delivery process
  • Reduce operational risk by partnering with an organization that boasts of an ISO 27001:2013, ISO 9001:2015, SSAE (SOC 1 & 2) and ISO 22301:2012 (Business Continuity) certification

Delivered 1 Million Title searches and 70,000 Tax reports annually to 2 of the Top 4 National Underwriters and 100+ Title & Tax customers.

Types of Reports:

Current Owner Search, Two Owner Search, Full Search, Legal and Vesting Report, Mortgage and Assignment Search, All Assignment Search, Deed and Mortgage Report, O & E Search, Judgment & Lien Search, Doc Retrieval and Update/ Date Downs.

In addition to SmartProp®, SLK Global Solutions also provides municipal lien search and property tax reports, mobile-based loan origination, automated loan level audits and real estate tax servicing platform.

To learn more visit: http://www.slkgroup.com/global/smartProp.php or write us at info@slkgroup.com

SLK Global is attending the MBA Annual Convention & Expo 2017

#SLKatMBA17 #MBAAnnual17

We are pleased to announce that SLK Global Solutions executive leadership team will be attending the MBA’s Annual Convention & Expo in Denver, from 22nd to 25th of October 2017. SLK Global has been a regular at the MBA’s Annual Convention for the past some years as it is THE ONE convention that brings together the best of the mortgage world, new trends leading to transformation and networking opportunities.

Backed by 16 years of domain expertise, SLK Global manages the whole value chain of Mortgage Originations and has more than 100 years of combined leadership experience in Servicing. This MBA, we plan to share with the industry:

  1. Our capabilities in loan boarding, processing, loan underwriting, closing, post-closing, mortgage servicing & default. This has successfully helped us manage Mortgage Originations for several of our clients including two of the top 25 US Banks.
  2. A real estate tax service platform for both residential and commercial portfolios that is currently being used by 2 of the top 5 U.S. Commercial and Multi-family Servicers.

In addition to this, we deliver comprehensive products and solutions driven by technology for the mortgage, title, banking, cards & payments and lender placed insurance industry. Our team of 3000+ experienced professionals has enabled us to support our footprint in USA, Philippines and India.  We engage with our clients to address their business imperatives and have enabled one of our leading clients to move up 5 Places in J.D. Power Overall Satisfaction Survey for Mortgage Origination.

SLK capabilities

Let us connect at the #MBAAnnual17 to exchange ideas and identify new opportunities to drive value to your business.

Write to us at salesinquiry@slkgroup.com to schedule a meeting today!

Managing the Economics of Servicing Turns out To Be a Challenge for Servicers

Real estate tax servicing

During the last decade, the servicing industry has gone through various changes due to the financial crisis that occurred in the year 2008. There was an increased number of delinquent borrowers which required assistance, on the other hand expectations from the mortgage servicers were boosted by consumers, investors, and regulators.

Besides the new regulatory standards at the state & federal levels and developments to operational, capital & liquidity requirements from investors, recent calls have been made for the additional regulation. Responding to the growing demand, mortgage servicers have strengthened their practices and are assuring quality to the customers in order to remain compliant. While some of the servicers have extensively struggled to lessen the servicing cost through technological innovation, many remain challenged by the legacy systems that are time consuming and imposes costly changes to fit into the latest requirements and servicing standards of the industry. Therefore, to manage the economics of servicing has turned to be a challenge for the mortgage servicers.

Considering these offsets and challenges, as a technology-driven solutions provider SLK Global Solutions realized that servicers can be empowered with a much better solution to overcome these challenges. Backed by 16 years of domain expertise, the company narrowed its vision to simplifying tax servicing and thereby have developed a robust technology platform for Real Estate Tax Service that can be customized to servicer’s business needs as well enable them to pay as per their lending habits and portfolio attributes. This not only allows the servicer to make enhancements and modifications to the platform but also leverage a client specific payment model. This solution is applicable for Residential & Commercial Mortgage Servicers, Regional Banks, Credit Unions, Asset Management Companies, Retail Chains and REITs.

To learn more visit: http://www.slkgroup.com/global/rets.php or write us at info@slkgroup.com

 

What could be the Biggest Change in the Title Industry?

What could be the Biggest Change in the Title Industry

The Title Insurance industry is undergoing a transition. With unpredictable market conditions and the heavy influence of technology, Title agents are expected to cater to the changing demands of their lender clients, that too in aggressive time frames, meeting all compliance norms. The inability to cope up may hamper their overall business, impacting margins across operations. Also, with the new CFPB guidelines, lenders are now responsible for the actions of their service providers. Title agents today are expected to meet all relevant regulations. All of this put together, has impacted cost and time. It has simply become too expensive and time consuming for title agents to keep their functions across the spectrum of settlement services entirely in house.

In order to manage margins better, Title Agents are now open to exploring and implementing digitization and technology implementation. This could be across building better technology or outsourcing work to capable partners or both. Title agents/agencies are really looking for new ways to reduce costs at enhanced levels of quality and service.

As a comprehensive provider of technology driven products and solutions for the Title Insurance & Tax, Mortgage and Banking industry, SLK Global Solutions delivers property search solutions through their product, SmartProp. It is a technology enabled property search solution for ownership and lien reports. Backed by 15 years of industry experience, the product assures,  50% faster delivery*, a web based technology for real-time placement and tracking of orders, nationwide coverage through online and strong abstractor network, easy Integration with leading title platforms. E.g. ResWare. This product is applicable for Title Agents and investors for Loan Processing, Default Servicing & Portfolio Purchase/Sale.

In addition to SmartProp, SLK Global Solutions also provides municipal lien search and property tax reports, mobile-based loan origination, automated loan level audits and real estate tax servicing platform.

To learn more visit: http://www.slkgroup.com/global/smartProp.php or write us at info@slkgroup.com

* For Online Searches Only