Loan Collateral Challenges For Servicers:
Mortgage lenders and Servicers must carefully safeguard the
collateral documentation that supports their mortgage and
loan portfolios to protect their interests – as well as protect
lender and investors’ claims – should the borrower ever default
during the lifecycle of a loan. In many cases, especially when the
loan is packaged as part of an asset-backed security, this may
involve the use of an Investor-mandated Document Custodian
who, by definition, must be part of a regulated financial entity,
and must adhere to stipulated safeguards such as two-hour
fire suppression and security protocols. This challenge is even
more prevalent for Servicers that acquire MSR portfolios as the
Servicer may not have an easy way to confirm that the loans
have the appropriate collateral documentation should a default
or regulatory problem arise.
Even when working with Custodians, Servicers are frequently
taking a more proactive role vetting collateral documentation,
prolonging the interaction with the original loan collateral, and
creating the need for enhanced storage and security.
Servicers are challenged with tracking the numerous Custodians
that support their portfolio’s collateral management, and
ensuring that appropriate security protocols are followed
in-house while they are directly responsible for the collateral.
The Solution Includes:
Collateral Vault Management Services (onsite & offsite):
Leverage Iron Mountain’s
expert records management staff to fully
manage or partner with your team to manage
your loan collateral vault and workflow either
onsite at your facility or within the security
of a dedicated Iron Mountain vault.
Vital Document Vault Rentals:
Continue to leverage your own personnel to manage
your loan collateral from within a secure Iron
Mountain facility with dedicated vault space
– enabling you to have full confidence that
your vital documents are protected.
Collateral Document Imaging and Validation Services:
Digitize collateral documents as
your needs dictate – leveraging Iron Mountain’s
automated classification solution to identify
core document types and flag missing
Loan Tracking Software:
Leverage Iron Mountain’s Accutrac® record management
software to centrally manage and track your
loan collateral files from inception through
custodial management and any interim access
needs – wherever the records reside.
74% of Servicers use an external Document Custodian to
safeguard the original loan collateral for at least a portion
of their Mortgage Servicing portfolio; of which +40% use
more than 6 different Custodians.
– Source: Media / Iron Mountain Survey Results; October 2015
Loan Collateral Challenges For Custodians:
On the flip side, Custodians face increasing pressure from stakeholders
to ensure careful management and validation of the documents they
safeguard as well as heightened demand for large volume transfers
and re-certifications as MSR portfolios continue to change hands. Many
custodians are therefore encountering the need for infrastructure and
workflow investments that may be challenging to finance internally. .
Addressing Your Loan Collateral Challenges:
As a trusted and leading information management provider to the
Financial Services industry, Iron Mountain has developed a suite of
solutions to support both Servicers and Custodians in their management
of loan collateral files.
Working with you, Iron Mountain can help you to create a more
cost-effective vault management solution. By leveraging our records
center process engineering and technology expertise, and by working
alongside our team of records specialists, you can ensure secure, efficient
and traceable management of your most vital loan collateral while
minimizing upfront capital investments.
What You Gain
- Reliability: Leveraging over sixty
years of proven practices
- Security: Meeting the strict standards
of the mortgage industry
- Efficiency: Streamlining your
- Predictable Costs: Minimizing
internal resources and your facility