May 15

When To Outsource Loan Servicing

There are a number of factors that can help you determine when and if you should service your loan or lease portfolio in-house or outsource it to an established partner. When making your determination, compliance, scalability and timing all come into play.

Growing with Your Portfolio

Up to a certain size and diversity, it likely makes sense to service your portfolio in-house. However, as your business grows, so do the complexities of portfolio management. If your servicing arm is not already developed, there are significant time and human costs—not to mention initial and ongoing hard costs, which we’ll address shortly—associated with building it. Plus, your portfolio cannot go without servicing while you work to build the infrastructure needed to do so. So, you have to ask yourself the question: Do you have the resources to successfully balance both?

With four strategically located operations centers in Baja California, Portland, Oregon and two in San Diego, Vervent was purposefully designed to offer clients room to grow within our existing facilities. We’re experts at recruiting and are able to scale your solutions on-demand.

Value of Outsourced Expertise

It’s important to recognize the complexity of setting up a successful servicing endeavor. Yes, it’s an expenditure to hire an established portfolio servicing partner. But it’s likely a far greater cost to develop the necessary staff, departments, procedures and facilities in-house if that’s not your business’ specialty. It takes a cohesive effort from multiple departments to effectively service a loan portfolio, and Vervent’s team offers turnkey solutions to deliver effective customer service, maximize returns and minimize risk.

Risking non-compliance also has significant cost, as fines from regulatory agencies continue to rise. Are you prepared to develop the systems, teams and strategies required to maintain compliance? When you outsource your financial servicing, the servicer takes on the responsibility of adhering to ever-changing compliance regulations that can differ as granularly as county by county. Vervent has an entire compliance and legal team dedicated to keeping up with current laws, technology and updates from regulatory bodies. Our expertise, together with cutting-edge technology and platform-wide artificial intelligence, allows us to navigate the dynamic landscape of compliance with precision and efficiency.

When To Outsource Loan Servicing

Each of our locations houses multiple business functions and includes management on site. They’ve been thoughtfully built from the ground up to give our well-informed agents—who have a rich understanding of our business, your business and your customers—the tools they need for success in their service efforts. Trained to specialize in effective ACH-recruiting, our agents can increase your portfolio’s performance while decreasing delinquencies and defaults.

When outsourcing with a partner like Vervent, not only do you benefit from immediate, qualified representatives and the potential to increase your revenue, you bypass the time, expense and overall resource tax of hiring and training.

The Time to Outsource

With more than 30 years of experience, Vervent’s four operations centers are ready to onboard your portfolios and service the loans today. On average, we onboard portfolios and get your servicing going ahead of schedule, doing our best to minimize your transition period. Don’t waste valuable time on a learning curve; we’re already experts at loan and lease servicing and can become an extension of your brand so you can spend your time more wisely focused on your core strengths.

To learn more about Vervent’s loan servicing, contact us today at 888.486.2509 or solutions@vervent.com.