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FSA must crack down on mortgage servicers, says IT firm

The FSA must crack down on mortgage servicers’ outdated computer systems, says mortgage IT provider Phoebus Software.

The IT firm has warned that today’s legacy mortgage servicing systems can no longer do the job required of them. It says TCF and 2009 regulatory demands require a higher level of interaction with customers, and outdated software systems are unable to cope.

Phoebus Software is campaigning for the FSA to raise servicing standards in the industry. Phoebus Software managing director Paul Hunt says: “A large proportion of the mortgage market still operates on legacy IT systems – some now several decades old. It’s no surprise lenders and servicers aren’t able to implement new TCF compliant collections strategies using those IT platforms.

“It shouldn’t be allowed to continue – the mortgage market is a very different beast now than it was even just two years ago. If the FSA is serious about getting TCF ingrained in lenders and servicers, they have to be tough on the systems they use.

“We need a co-ordinated effort in the industry to invest in improving the mortgage market and the way all lenders and servicers operate. The longer we ignore it, the more borrowers suffer.”

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Richard Farr, Telos Compliance 23rd June 2009 at 9:33 am

    Systems and Controls
    This is not a question of the efficacy of a firms IT provision, but a wider question of Systems and Controls, which is now becoming the FSAs major focus for all firms, regardless of them being a lender, intermediary or service company. A fraction of the investment required to make wholesale changes to legacy systems, would be suffcient for a firm to fully engage in meeting their SYSC requirements. The difficulty is in acquiring the right skill set in order to complete a full SYSC review.

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