NEW YORK–Mortgage servicing firms in the U.S. are reducing servicing staff levels.
According to the latest quarterly U.S. RMBS Servicer Handbook from Fitch, the reductions come as portfolio sizes are declining and loan performance is improving.
However, according to Fitch reports, the staffing trend by mortgage servicing firms is in stark contrast with nonbank servicers, which are continuing to focus on servicing growth and whose borrowers generally still require more frequent interaction, driving their need for robust staffing.
The average number of full-time mortgage servicing employees at banks has fallen to approximately 4,000 from approximately 8,000 two years ago, Fitch reported. The number of nonbank mortgage servicing employees has remained fairly stable at close to 2,000 over the same time period.
Fitch added that in addition to lower mortgage delinquencies, high credit quality portfolio additions mostly brought on by origination activity are also contributing to reduced staff among bank servicers. In fact, bank servicers now manage more than twice as many mortgage loans per employee compared to nonbank servicers, a comparison not likely to change to any great degree anytime soon.