BSI Financial Services
The phrase “the new normal” grew in popularity following the financial crisis of 2007 and 2008. It’s often used to explain that markets are settling into a new rhythm, guided by emerging regulations and evolving business practices that stress compliance while achieving profitability.
The problem with the phrase “the new normal” is that it suggests that markets will assume a measure of stability and consistency as they find this new footing — that, following an initial period of upheaval, business will settle into a predictable pattern.
In reality, the very word “normal” belies the ongoing change many continue to experience nearly six years following the market’s collapse. Can anyone really expect that markets will reach a period of normalcy? Or will they in fact continue to flex, shaped by the ebb and flow of the global economy, the vagaries of regulatory and policy change and fluctuations in consumer and investor confidence?
BSI Financial Services is betting on the latter. It assumes that change will be a constant, and it is adopting a business model that emphasizes flexibility and transparency for itself and its clients to ensure success in 2014, and beyond.
A sea of change
With the New Year comes a host of new Consumer Financial Protection Bureau rules governing consumer notice and disclosure. There is a heightened air of anxiety around complying with the new CFPB rules — particularly among servicing organizations that have not modernized their platforms or processes in anticipation of the changes.
Beyond regulatory issues, the pool of loan servicers continues to shrink as companies struggle to operate profitably in the evolving market or fail to find a viable niche. The challenge for lenders and investors is to find a strong partner that can offer flexibility and institutional competency in rapidly evolving times.
There is a consistent cry from the secondary market for transparency in servicing operations and performance reporting. Not only must servicing platforms enable such transparency, they have to be supported by a culture that promotes accessibility and responsiveness to investor inquiries.
Forward thinking for tumultuous times
“We must think rather than plan strategically as the pace of change accelerates,” says Gagan Sharma, BSI Financial’s CEO.
After more than a quarter century of providing loan services, BSI Financial has survived and prospered in periods of abrupt transition. Today, its global workforce and network operations that span continents allows the company to quickly scale to accommodate market fluctuations, and to load-balance tasks across its offices.
Technical proficiency enables BSI Financial to leverage new technology and the falling cost of computing and storage to engineer flexibility and modernity into loan servicing.
Employees are encouraged to spot and resolve problems quickly, and to try to resolve clients’ issues and answer their questions in a single phone call. It is a culture of rising expectations for performance — exactly the kind that tends to rise to the top in times of change.
What’s in store for 2014
Sharma tells HousingWire that BSI is evolving beyond proficiency in transaction management to develop excellence in information management. In the new era of mortgage servicing, it is not sufficient to merely process and remit payments to investors and securitization trusts. Loan service companies must also excel at reporting and offer visibility into loan operations, Sharma says.
That’s why BSI is investing in a new layer of information technology designed to offer investors and clients a self-serve reporting capability that will satisfy the secondary market’s demand for transparency, while offering unparalleled performance reporting. This technology will also facilitate a new level of borrower intimacy that will better enable BSI and its investor clients to manage the loan servicing life cycle far more effectively, the company says.
Having recently secured a Fitch rating as a residential primary servicer and residential specialty servicer, BSI Financial is also pursuing larger block trades in the securitization servicing market.
Through it all, BSI Financial appears set to strengthen the pioneering spirit that has enabled it to spot impending change and turn tumult into opportunity.
Editor's note: The companies participating in this Special Section sponsor their content. Each company tells a unique story, one they wished to share with HW Magazine readers and the industry at-large.