A new residential servicing business has been created for credit unions that aren’t satisfied with the servicing options that are currently available to them.
Credit unions that want to handle servicing on the mortgages they originate can choose to service the loans in house, which can be a challenging endeavor.
A second option is for these smaller financial institutions to use a sub-servicer — though there are still drawbacks associated with utilizing sub-servicing.
That is according to myCUmortgage, which announced Thursday that
it launched its new servicing operation for first mortgages.
“By building its own mortgage servicing operation, myCUmortgage can now use its member-focused approach to help credit unions service their members’ mortgage needs,” the announcement said.
The credit union service organization said that the offering utilizes a cooperative pricing model that
results in lower servicing costs as volume grows.
Self-service tools tools are provided for credit union clients to help borrowers at the point of contact. Also included are a series of reports and dashboard tools.
myCUmortgage President Tim Mislansky explained in the news release that the new business enables “credit unions to handle more of the member servicing interaction while myCUmortgage handles the heavy lifting in the back office.”
The subsidiary of Wright-Patt Credit Union expects to begin servicing loans that are originated during the remainder of this year.
By mid-2017, myCUmortgage expects to convert its
existing servicing portfolio from the current sub-servicer.
Once the conversion is completed, the CUSO hopes to offer its servicing to the broader credit union industry.
