It’s only been a year since MassHousing implemented a new loan servicing system through Fiserv, but the impact has been far-reaching. Fiserv not only provides our customers with a better way to make their monthly payments, but also has established an infrastructure on which we have built partnerships with other housing finance organizations and upon which we will build more in the future. Put plainly, Fiserv makes servicing Fannie Mae, Freddie Mac and FHA loans financed through the Federal Home Loan Bank possible.
Better borrower experience
MassHousing mortgage borrowers now have easier access to their accounts and can readily make online payments. Previously, borrowers could sign up for automatic withdrawals but could not initiate payments online. Electronic payments have increased 70%, with approximately 9,700 borrowers paying online every month. While we are proud to service all our loans and to maintain a physical presence in Massachusetts, the number of customers actually walking in to MassHousing’s office to drop off their monthly mortgage payments has decreased 25%.
"Both MassHousing and our thousands of borrowers are enjoying the benefits of the Fiserv system, particularly in terms of convenience, security and efficiency" said Kevin Mello, MassHousing’s Director of HomeOwnership Servicing and Operations. "Our partnership with Fiserv ensures that we can continue to provide our customers personalized, quality service that promotes their success over the long term."
“High-touch” service means low delinquency and foreclosure rates
By servicing its loans and offering uniquely personal attention to its borrowers, MassHousing has maintained low rates of delinquencies and foreclosures, even when compared to the most competitive benchmarks available. In March 2017, the most recent month with data available, MassHousing’s delinquency rate was 2.33% compared to 3.69% for MBA Conventional Fixed-Rate loans in Massachusetts; MassHousing foreclosure rates were 0.41% compared to 1.35% among MBA Conventional Fixed-Rate loans.
MassHousing has been servicing its home mortgage loans in-house since 1996. At the end of April 2017, the Agency was servicing 19,429 first mortgage loans with an outstanding balance of nearly $3.8 billion. That’s more than double the all-time low in terms of loan count (9,300 loans in May 2004) and more than five times larger than the low in terms of principal balance ($700 million in May 2004).
The Agency’s in-house servicing operation was created to ensure that MassHousing borrowers receive the highest possible level of customer service. Fiserv provides better tools that allow the Agency to continue to service a growing and changing loan portfolio without sacrificing its ‘high-touch’ approach.
A digital infrastructure to connect with other housing finance partners
The adoption of the Fiserv system has also provided the platform that has allowed us to add Freddie Mac and Federal Home Loan Bank products to our offerings and to expand our servicing operations in the future.
Improvements to the Fiserv system are planned for the coming months to redesign the user interface, deploy a new customer-facing web application, enable mobile access and improve performance overall, among other features. In addition, MassHousing expects to introduce new telephone technology to increase efficiency and allow a more personalized experience for borrowers.
“The high touch relationship we have with our customers is unparalleled in the industry,” Mr. Mello continued. “We really have a vested interest in their well-being and in the communities where they live. By incorporating these technologies in our work, we’re providing our borrowers with the best possible service and putting them in the best possible position to succeed.”