A year after deciding it would retain servicing, Tulsa, Okla.-based Gateway Mortgage Group reports that its servicing portfolio has grown to $1.2 billion in volume.
In 2010, Gateway executives, deciding to end the privately held mortgage bank's reliance on the five large loan aggregators, brought servicing in-house. The company developed policies and processes, added staff with experience in the areas of collections, loss mitigation and escrow analysis, and worked with GCC Servicing Systems to create the internal platform.
‘As Basel III changes the role of large depository institutions in the servicing arena, lenders will be forced to either build in-house departments or select a subservicer," says Gateway President Kevin Stitt. "We were ahead of the curve in this move. With 90 percent of the country's loans being serviced by five organizations, we felt it was important to bring diversity to the landscape while offering better service to our customer base.’
Gateway additionally says that since deciding to retain servicing, its delinquency ratios have decreased year-over-year by 3%.
‘Relying on larger lenders to service our loans, we had no control of the process and couldn't ensure a great experience for our customer," Stitt says. "Handling the servicing ourselves enables us to implement new, innovative ideas for working with borrowers."