NAPUS Federal Credit Union - Best Practice in Mortgage Servicing

With the high volumes of troubled loans and the pressures on servicers to keep people in their homes, credit unions struggle with whether to outsource servicing or handle it in-house. In 2009, the National Association of Postmasters of the United States Federal Credit Union (NAPUS FCU) ($262 million in assets), decided they could better serve their members and increase the efficiency of the mortgage servicing department by bringing servicing back in-house from an existing outsourcing arrangement.

Working with a third party prevented NAPUS FCU, from optimizing organizational efficiencies. Modifying accounts and resolving issues required constant communication between NAPUS FCU and their mortgage-servicing provider, creating a hassle for both NAPUS FCU and its members.

“Member complaints were one of the primary reasons we decided to bring servicing in-house,” said Angela Bassett, real estate manager for NAPUS FCU. “We were receiving multiple complaints each day from our members regarding the lower levels of service they experienced in seeking information or handling their mortgage loans.”

Once the decision to bring servicing in-house was made, NAPUS FCU selected FICS^®’ residential loan servicing software, Mortgage Servicer^®, in July 2009. Mortgage Servicer automates all servicing functions including escrow administration, collections, investor accounting, payment processing, daily cash accounting, and IRS year-end reporting. The software also provides the capability to automate the servicing workflow and reduce the time spent on reporting.

Bassett added that the simple interface and strong training from FICS were factors in their decision. “The software itself guides new users, and the FICS team offers fantastic and quick assistance,” Basett said. “They are readily available to answer questions and can resolve issues right away.”

Since implementing FICS’ mortgage servicing software, the most significant benefit has been the improvement in member satisfaction. NAPUS FCU largely attributes the improved member satisfaction to gaining full control over loans and accounts, which allows them to make loan changes and updates instantly, instead of having to go through multiple contacts with the outsourcing company to revise loan files.

“By outsourcing we were giving up control of our accounts, as well as our member service,” said Bassett. “With FICS’ software we are able to have complete control and handle all matters in-house, which members definitely appreciate.”

NAPUS FCU saw member complaints about mortgage loans drop significantly. In addition, NAPUS FCU is more efficient in servicing loans. They now have all the information needed to identify loans at risk of default at their fingertips, helping the credit union proactively work with members to maximize collections and make modifications if necessary.

FICS’ Mortgage Servicer also enables NAPUS FCU to spend less time on loan files. Prior to using FICS, NAPUS FCU spent valuable time producing documentation the outsourcing company required to change files or set up new loans. FICS’ Mortgage Servicer helps NAPUS FCU to streamline the process of updating accounts and eliminates the need for multiple correspondences by phone and e-mail for every loan change.

Finally, selecting FICS’ Mortgage Servicer software system and bringing the servicing back in-house has not increased short-term costs for NAPUS FCU. The real benefit, which saves the cost of losing dissatisfied members, is in the credit union providing better, faster service and being able to maintain a quality relationship with existing members. Moving forward, due to the automation benefits provided by Mortgage Servicer, the credit union could continue to grow its portfolio without incurring prohibitive cost increases.

About NAPUS FCU

National Association of Postmasters of the United States Federal Credit Union (NAPUS FCU) was chartered in 1970 by a group of postmasters working together to achieve their financial goals and benefit their families. Today NAPUS FCU is owned and run by its members and provides personal and commercial banking services to postmasters and their families throughout the United States. Regardless of investment, each NAPUS FCU member receives an equal vote in the annual credit union election. NAPUS FCU is a non-profit organization and gives excess revenue back to its members through higher share savings dividends, lower loan rates, free or low-fee services and new services. Additional information about NAPUS FCU is available via the company’s website at www.napusfcu.org.

About FICS

Founded in 1983 and headquartered in Dallas, Texas, Financial Industry Computer Systems, Inc. (FICS), specializes in providing flexible, comprehensive residential and commercial technology solutions to the mortgage industry. FICS' systems are designed for Microsoft ^® Windows^® with the most recent solutions using .NET framework that include a rich Windows^® Presentation Foundation user interface and multi-tiered shareable services. The company also provides innovative document management and web-based capabilities into its full suite of products. Additional information about FICS is available via the company's website at www.FICS.com.