QC & A: Questions Answered from the 2024 MBA Servicing Conference

QC Ally

By: Melissa Peregord, Chief Growth Officer of QC Ally

Welcome to QC & A! QC Ally’s take on a Q & A blog. In this series, we aim to answer questions on topics and events in the housing industry. Make sure to check out our Knowledge Center regularly for topics impacting the mortgage industry.

In this edition, we are focusing on key takeaways from the 2024 MBA Servicing Conference, which took place February 20-23 in Orlando, Florida. While we knew this would be a great show to kick off 2024, we had no idea just how many great conversations we would have with the servicing community. Our conversations sparked discussions on everything from AI to Credit Quality. Read on for key themes we heard from servicers like you.

How are servicers solving for efficiency while still adhering to investor guidelines?

We heard this topic time and again at the show, and the not-so-surprising answer is: Different servicers are taking different approaches. That said, one thing is true across the board: prioritizing technology and third-party partners where possible, while allowing internal teams to focus on exceptions, is key in order to maintain the right balance between efficiency, accuracy, and regulatory compliance. Servicers are focusing internal resources on what matters most while also resulting in a decrease in errors – the best of both worlds!

How will AI impact quality and the servicing industry as a whole?

If the 2024 Superbowl ads taught us anything, it’s that AI has arrived. And the MBA Servicing conference was no exception. We saw a lot of focus on what AI will ultimately mean for servicers. Excitement and apprehension were both common themes, and we are likely to continue seeing refinement and definition on how AI can strategically help lenders as the discussions progress throughout the year. What we know for sure is that we are starting to see the signs of early adopters up for the challenge of helping the industry define what is possible with AI.

What is the outlook for servicing performance as we get into 2024?

When it comes to overall delinquency rates, mortgage servicing is enjoying relatively strong performance. That said, we heard lots of discussions around the underlying economic conditions that, left unresolved, could lead to a spike in delinquencies. Factors such as increased credit card debt, rising auto loan delinquencies, and reduced savings rates could cause some challenges for mortgage portfolios later this year. Many servicers we talked to know that they have to ensure high quality servicing processes to manage their potential increase in default activities in a safe and compliant fashion. 

How are servicers fairing in today’s landscape of lower origination volumes?

For many, selling Mortgage Servicing Rights (MSRs) to fund the business is the right decision that will likely pay off down the road. We heard several servicers say the move is a short-term strategy and that rebuilding their servicing portfolios will be a focus going forward. As these companies look to rebuild their portfolios, QC Ally will be there to scale with the changing needs. Through the ebbs and flows, we know our industry is highly resourceful and resilient, and with no contractual servicing audit monthly minimums, QC Ally is a long-term strategic partner that supports our clients’ needs now and in the future.

Similarly, we heard lots of talk about credit quality. In our post-closing QC business, we are seeing increases in defects in loans being originated in today’s higher interest rate and lower volume environment, and the risk of repurchase is a real concern. The good news is that with repurchase risk being top-of-mind, we expect to see lenders implement solutions and team up with QC partners that safeguard against this risk. By being proactive, it could mean the difference between thriving vs surviving.

MBA Servicing is just the start of Spring tradeshow season for QC Ally. Expect to see us at several industry shows the first half of the year, including:

Whether you want to meet at one of these upcoming shows or simply want to jump on a phone call to discuss, we’re here to assist. Contact us today:

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