Compliance Firm Opens Mortgage Servicing Shop
Mortgage quality control services firm Quality Mortgage Services (QMS) is entering the servicing industry in order to fill a gap in avaiable firms that provide mortgage quality control outsourcing and compliance services clients. The announcement comes at a time in the mortgage finance industry where profit margins for servicers remain incredibly tight. QMS, however, believes it can employ a winning business model. The new servicing division is being called QMS Servicing and will be head-up by Sherrie Reed. Reed is a 20-year veteran of the mortgage industry and is a certified real estate education instructor in Washington State, and has written and instructs four continuing education classes in Tennessee. “Sherrie has a wealth of knowledge in the industry and is a perfect fit for the position,” said QMS executive vice president Tommy Duncan. “The decision to expand our services was the next step in the evolution of our company. Mortgage servicing will further expand our national presence and solidify [ourselves] in the mortgage industries’ servicing arena.” It’s an interesting time to enter the servicing industry. Margins are shrinking, and only the leanest, most efficiently operated firms are succeeding in an environment where technology, labor and other operational expenses seem to constantly affect the bottom line. For her part, Reed is confident the new unit will benefit borrowers and lenders and remain competitive through a streamlined strategy: “What this does, it eliminates the need for the lender to have someone on staff to manage servicing,” Reed said. “We make sure the mortgage payments are maintained, the insurance and taxes paid when due, and if a borrower is late, we send out the late notices.” Write to Austin Kilgore.