MODERNIZING MORTGAGE LOAN SERVICING: A STUDY OF CAPITAL ONE’S DIVESTITURE TO RUSHMORE
DOI:
https://doi.org/10.15662/IJRAI.2021.0404004Keywords:
Data Management, Compliance Enforcement, Post-disbursement Tasks, Escrow Administration, Mortgage Loan ServiceAbstract
A Loan Management System (LMS) is an electronic system for automating and streamlining the loan life cycle, from underwriting to servicing, collections, and closing. It emphasizes centralized data management, process automation, scalability, compliance enforcement, credit evaluation, and support for multiple types of servicing. LMS solutions assist lenders in minimizing human errors, maximizing operational efficiency, and delivering an effortless borrower experience. Mortgage loan servicing is a significant aspect of LMS architecture, managing post-disbursement activities such as interest calculations, escrow handling, repayment tracking, and compliance with regulations. LMS systems are required to handle fixed-rate, adjustable-rate, and government-insured loans and accommodate loans at different stages. Satisfactory servicing ensures accurate loan accounting, timely communication, and compliance with regulations. Rushmore Loan Management Services successfully migrated and certified mortgage servicing information in a strategic divestiture of Capital One's loan origination business, maintaining operations continuity, regulatory compliance, and borrower confidence.
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