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Questions to Administer Loans By. Will only the big live long?What's up with cost economies?Is there really revenue other than servicing and late fees?Will borrowers cause mortgage bankers any problems?. In considering those questions we will cover.... Company/Servicing ProfitsCostsRevenue
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1. Loan Administration for the New Centurypresentation atThe Servicing Management Workshop Doug Duncan
MBA Chief Economist
June 21, 2000
2. Questions to Administer Loans By Will only the big live long?
What’s up with cost economies?
Is there really revenue other than servicing and late fees?
Will borrowers cause mortgage bankers any problems?
3. In considering those questions we will cover... Company/Servicing Profits
Costs
Revenues
Demographic factors
4. …by using data from... The Cost Study
The Cost of Servicing Study
MBA/Stratmor Peer Group Roundtables
IT Cost Study (this is pro forma)
5. …and concluding that... Only the “mid” die young
Direct cost economies are achieved at a fairly low number of loans serviced
Yes, even you can earn ancillary income
Probably, by being delinquent more than you’d like and not cross buying as much as you’d like
6. MBA Research Department Data Tools