The Smart Team of NOVA® Home Loans

Mortgage Servicers May Have a Problem

Posted To: MND NewsWire

Servicers might have a loyalty problem. Or, more likely, a marketing one. In its April Mortgage Monitor , much of which we covered earlier this week, Black Knight Financial Services took an in-depth look at servicer retention . This is the rate at which a borrower would remain with the same servicer after refinancing. The company found that servicers are more and more losing customers post-refinance. Of course, picking a servicer is not something a borrower does directly, the servicer comes as a package when a borrower decides on a lender for the refinance. In 2011 about half of refinancing borrowers returned to the same servicer with the new loan. By August 2016 the number had dropped in half, to 24 percent, a nine-year low. The number did tick up slightly in the next quarter as high credit…(read more)

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Source: Mortgage News Daily

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