Fidelity National Information Services, Inc. said earlier today that Wachovia Corp. has expanded its use of the company's ubiquitous MSP platform. The new deal means that Wachovia will service all mortgages and home equity lines of credit on the venerable industry platform; the bank has been servicing first mortgages on MSP for over 10 years. From the press release:
MSP will provide securitization, default, escrow management and regulatory oversight capabilities for Wachovia's home equity loans. In addition, FIS will provide transaction processing services for the credit cards tied to Wachovia's home equity lines of credit. FIS' real-time card access allows Wachovia to obtain a complete solution from a single provider.
MSP -- short for mortgage servicing platform -- is the giant on the block in terms of mortgage servicing, handling more than half of all mortgage servicing nationwide in the US market. Keep in mind that while the press release doesn't specify it, and Fidelity would clearly like to keep everything under the MSP branding handle, MSP likely isn't actively providing full support for all of the above functions -- especially default management, for example, where Fidelity has its own highly-marketed solutions that aren't part of the old-but-reliable MSP system. Most of the ancillary functions outside of core loan adminstration are handled by other platforms, and coordinated with MSP via electronic data interchange (EDI) tie-ins. This means that the above deal isn't just a deal for MSP, but likely a much larger and important win for the entire Fidelity organization, spanning its secondary markets, loan administration, default management, and regulatory compliance businesses.