In-house Servicing Business Case

Client Need: A top 50 bank wanted to better understand the financial advantages of in-sourcing mortgage servicing and what servicing system would be best to serve their needs.

Solution: BenchMark explored the possibility of using an internal system for servicing mortgage loans. Internal systems’ functional analyses indicated that it would be financially advantageous to bring servicing in-house. It was also determined that more seamless customer service support would be provided by one of the internal systems and that system would be easier to convert in a shorter period of time.

Results: Based on BenchMark’s analysis and recommendation to bring servicing in-house, it was determined that payback would occur in less than one year, with a recurring $800,000 per month reduction in expense occurring after the payback period ended.