Mortgage Default Servicing and Management

Enabling lenders and servicers to bolster loss mitigation efforts and prepare for spurt in loan defaults

CHALLENGE 

The impact of COVID-19 on mortgage industry has been far-reaching and borrowers are feeling the pinch. Mortgage delinquencies the world over have witnessed an increasing trend, and in some cases, have hit record levels. To help distressed borrowers, governments across the world have introduced forbearance or payment relief measures. While in the short run, these relief programs will reduce the burden on borrowers, as time goes by and financial problems accrue, loan defaults are likely to rise. Lenders and servicers will therefore need to streamline the default servicing process and be prepared to mitigate and address loan defaults.

TCS SOLUTION

TCS is one of the largest providers of mortgage services with close to 20 years of experience and over 12,600 associates supporting mortgage and home lending firms across business process operations, digital and technology solutions, and advisory and consulting services. We have developed deep domain knowledge and expertise across the value chain by virtue of working with multiple leading lenders, banks, and servicers across the globe.

TCS offers the following services in the mortgage space:

Digital mortgage services:

• Digital servicing: Omni-channel self-service solution for customers to track and manage mortgage loan account and payments; help customers seek assistance and apply online for forbearance, loss mitigation, and loan modification with ease
• Chatbot: Conversational solution to drive real-time query and seek assistance for loss mitigation related workouts

Predictive analytics using data science to:

• Preempt and project mortgage delinquencies, loan forbearance and loan default
• Assess potential impact on cash flows
• Optimize models for loan modification terms
• Predict advances for servicers
• Conduct stress tests for regulatory purposes
• Report insights to business

Business process services:

• Forbearance and payment relief: Review, setup, activation, and extension
• Loan modifications: Payment arrangement or loan adjustment request, booking, fulfillment, underwriting
• Foreclosure and bankruptcy management: Review, setup, execution, bid management, audits, claims processing, oversight, and reporting

TCS has played a pivotal role in helping mortgage firms across the globe achieve desired business outcomes through varying economic cycles. Our proven expertise in working with banks and non-banks, specialized lenders, servicers, and allied industry players makes us strongly positioned to understand and align our services to customer requirements.

BENEFITS

TCS’ services help banks and mortgage firms:

• Instill empathy in customer experience : Drive hyper-personalization of workflows, speedy management of loss mitigation applications, and round-the-clock omni-channel support for customers
• Reduce servicing costs: Improve productivity through adoption of digital ecosystem for borrower and servicer and suitable right-shoring models
• Enhance regulatory compliance: Streamline processes to meet regulatory compliance requirements effectively and efficiently
• Mitigate losses: Run predictive analytics to derive insights for pre-emptive actions to mitigate loan losses for borrowers and lenders