Smart maintenance: why purpose-built software pays off

The mortgage market is showing signs of recovery. After years of dealing with high interest rates that began rising in late 2021, lenders see a path forward. According to the Mortgage Bankers Association’s (MBA) January 2026 Mortgage Finance Forecast, the volume of single-family mortgage originations will increase to $2.2 trillion in 2026, up from $2.05 trillion last year.

As the number of new loans increases, many lenders view selling loans to government-sponsored enterprises or other investors as a critical strategy to free up capital and manage portfolio risk. But did you know that there is a benefit to retaining servicing rights on loans sold, creating a steady revenue stream through servicing fees while strengthening borrower relationships that can lead to future business?

The catch? To make it work, you need the right software.

The hidden costs of using the core system

At first glance, the basic functions of the banking system seem like the easy choice for lenders evaluating their servicing software options. It’s already there, it’s already been paid for, and it goes well with other products. Why add more software?

The reality is more complicated. Mortgage servicing involves regulatory requirements and operational complexities that are fundamentally different from those of other types of loans and products. Core systems can handle auto loans and personal loans effectively because these products follow relatively simple payment schedules and reporting requirements. Mortgages have many layers.

Escrow management alone presents challenges that most core systems are not designed to deal with. Tracking property taxes and insurance premiums, performing annual escrow analyses, and managing deficits and surpluses often require manual solutions when the base software does not have specific mortgage functionality. What looks like cost savings on the software side turns into labor costs on the operations side.

The same pattern repeats itself in investor reporting. Fannie Mae^® and Freddie Mac^® have very specific reporting requirements that can vary by loan type and other factors. Without automated workflows built specifically to meet these requirements, service teams spend hours each month manually compiling reports and reconciling data. That is not only inefficient, but also risky. Manual processes increase the likelihood of errors that can lead to compliance issues, strained investor relations and/or expensive fees.

Building efficiency with purpose-built software

The question is not whether the core system can mortgage services. Technically it is possible. The question is whether lenders should rely on it and whether this hinders profitable growth in the services portfolio.

FICS’ mortgage manager^®a dedicated mortgage management software, meets the unique requirements of the business. Here’s what sets Mortgage Servicer apart from the basic features that too many administrators continue to use at their core:

Investor reporting that adapts

The demands of Government-Sponsored Enterprise (GSE) do not stand still. When Fannie Mae or Freddie Mac updates reporting formats or compliance standards, Mortgage Servicer quickly adapts. Automated investor reporting eliminates manual compilation work and reduces the risk of missed deadlines or formatting errors that can strain investor relationships.

Escrow administration without worries

Full escrow management means the software handles the initial escrow setup, performs automatic annual analysis, processes interest on escrow accounts, tracks all escrow-related payments, and generates required statements without manual intervention. The tax service integration ensures that property tax changes are quickly captured and reflected in borrowers’ payments.

Give borrowers control

Modern borrowers expect digital access to their mortgage information. Web applications, such as eStatus Connect from FICS^®lets them view loan information, access statements, and make payments on their schedule. This reduces call center volume and improves satisfaction. Automated payment reminders and account notifications keep borrowers informed without the need for staff.

Integration via APIs

Application Programming Interfaces (APIs) may sound technical, but they offer practical benefits. APIs allow maintenance software to communicate seamlessly with other applications, such as the core system, accounting software and document management platforms. That automation eliminates duplicate data entry, reduces errors and allows staff to focus on exceptions rather than routine tasks.

Up-to-date information when you need it

Real-time access (RTA) is important for anyone dealing with a mortgage account. When a borrower calls with a question, the customer service team should immediately see the current balance, recent payments and upcoming due dates. When a cashier processes a payment at the branch, the mortgage software should be updated immediately. RTA eliminates the delays and disruptions that frustrate both staff and borrowers.

Making the business case

The decision to invest in specialty mortgage servicing software comes down to capacity and growth strategy. If lenders view servicing as a monetization opportunity and a way to maintain borrower relationships and generate stable fee revenue, the operational limitations of a core system can hold the organization back.

Servicers who use purpose-built servicing software, such as Mortgage Servicer, can service more loans per employee because automation reduces manual tasks. They maintain stronger relationships with investors because reporting is timely and accurate. They provide a better borrower experience by using self-service tools and real-time information to create convenience and transparency.

The mortgage market projections for 2026 create an opportunity for lenders positioned to capitalize on it. Having the right servicing infrastructure means lenders can grow their portfolios profitably, consistently meet investor expectations and build lending relationships that generate business long after the original loan has closed.

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