In June 2007, Apple shook the world to its cellular core when it released the first-generation iPhone. Over the course of the last decade-plus, the seminal smartphone would wipe out its competitors — but not without some resistance. Many of us clung to our Blackberries for dear life, unable to imagine a world without Brick-Breaker and — the toughest pill to swallow — physical keyboards. People had devices that made calls, sent texts, had games and even had some internet access. In the “If it ain’t broke, don’t fix it” paradigm, non-smartphones weren’t broken, so they didn’t need to be fixed.
For many, the thought of changing something as fundamental as a method of communication was paralyzing. Many even knew they had an inferior device, but they put up with it out of the perceived headache involved in making the upgrade. However, as smartphones increased in popularity, and more and more people began to experience their near-infinite potential, there was no going back. The superior product won the day.
We think of changing subservicers in much the same way. Change is never easy, and your relationship with your subservicer has probably been on comfortable autopilot for a long time. You may think it’s getting the job done, as well as the job can be done. But if you’ve only ever had one subservicer, you have no point of comparison — just like Motorola Razr devotees couldn’t imagine the benefits of smartphones.
We know change is hard. But we believe that, when it comes to changing to TMS, it’s not nearly as scary as it may seem, and at the end of the day, it’s more than worth it. In this article, we explore what makes change in and out of subservicing so intimidating — but why, in the end, you’ll be happy you did.
Fear of unknowns
Perhaps the greatest obstacle to change of any kind is that it means embracing the unknown. Think about how hard it can be to change something as simple as the brand of shampoo you use. What if it doesn’t smell as good? What if the bottle runs out more quickly than you’re used to? What if it doesn’t make your hair look as voluminous and silky as you’ve come to expect?
Indeed, embracing the unknowns of shampoo adjustment is hard, so embracing the unknowns that come with changing subservicers could seem like a Herculean task. You’ve gotten used to the relationship you’ve had with your current subservicer — how long will it take to get used to the next one? Moreover, your customers have gotten used to this servicing style — how will they respond to a shift?
This fear makes changing seem much scarier than it really is. In the course of a year, we handle as many as 25 client shifts, meaning that we’ve got the service transfers down to a science (a 7 Step Onboarding science, to be specific). Where you see unknowns, we see familiarity. We utilize a battle-tested transfer process, which we’ve established through repeated transfers with the majority of servicers. While it may seem like you’re entering a long and winding road, our expertise will make you feel assured at every turn.
When facing a change as significant as changing subservicers, it’s natural to experience some personal fears. The new dynamics associated with change make it necessary to develop new habits, incorporate new processes and perhaps even say goodbye to systems that you yourself put in place (imagine the day the CEO of Motorola finally caved and bought a smartphone). These various fears will coalesce into two major questions: Am I doing the right thing for my company and customers? If so, will I be up to the task?
Among the advantages of switching to TMS is that, unlike with prior servicers, most of the new responsibility will fall on us. We have repeatedly proven that we are up to the task for both you and your customers, with measurable results like a 91% first-call resolution rate, 98% increased customer satisfaction and an 80% net promoter score. Instead of having to wonder whether autopilot subservicing is getting the job done, we will develop a completely transparent relationship with you, centered around our SIME (Servicing Intelligence Made Easy) technology. SIME gives you full, real-time transparency into your portfolio, with instant access to customer documents, call recordings, customer payment habits and much more.
If you’re not getting total transparency from your current servicer, you never know what they might be hiding. Through our top-tier tech, and by cultivating a proactive, honest relationship with both customers and clients, TMS shows that we have nothing to hide.
All change has an impact. Particularly when it has to do with money, people tend to grow concerned about whether the next phase will merit the effort. Switching banks, for example, requires opening new accounts, taking inventory of outstanding checks, linking savings and checking accounts, closing old accounts, and keeping thorough, written proof of each step in the process.
When it comes to subservicing, clients in transition naturally wonder about how all the extra effort will impact their bottom line. Will they really be in better shape than before they shifted? If not, what might the consequences be?
Change will bring consequences — but they don’t have to be negative. Our track record is living proof. During COVID-19, the mortgage world has seen a massive spike in delinquencies (DQs). Throughout this time, we have managed to keep our DQ rates well below the industry average, due both to SIME’s full 360-degree view predictive data modeling and real-time reporting, and to our positive, trusting customer relationships. By emphasizing proactive and thorough customer education and treating happiness as the ultimate goal, we keep our customers in better shape than most — which, of course, extends to our clients.
Monkey see, monkey do
Those who resist change look into the future and see a reiterated version of the past. They know how things have been, and particularly if things have functioned at an acceptable (if not optimal) level, they’re often happy to accept that over a different option. One study even showed that human beings were less likely than our primate relatives to accept new problem-solving strategies — even when they were shown to be more efficient.
For all the unknowns inherent to changing subservicers, we have done it time and time again, and repeatedly given clients better results. We provide clients total transparency of their portfolios in real time — which most subservicers don’t. Even in the most challenging times, we exceed industry standards in both DQ management and customer experience. Change is an opportunity for growth, and we are more than happy to facilitate it.
Learn more about how we put an end to subpar subservicing.