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 It says TCF and 2009 regulatory demands require a higher level of interaction with customers, and outdated software systems are unable to cope.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.”