- 4 months ago
- #mortgagetech
- #fintechinnovation
- #loanservicing
HousingStack, powered by HousingWire and The Basis Point, lets you quickly comparison-shop tech solutions critical to your operations today. Plus, the Basis Point’s real-time, on-stage analysis drills in on ROI and critical nuances of the technology to help lenders make decisions.
In this demo, Sagent’s Omer Farooque presents a next-gen approach to mortgage servicing. From real-time data to borrower transparency, the platform is built for today’s evolving compliance and customer demands. Watch as The Basis Point breaks down the ROI and strategic impact of Sagent’s servicing tools.
#MortgageTech #FintechInnovation #LoanServicing
In this demo, Sagent’s Omer Farooque presents a next-gen approach to mortgage servicing. From real-time data to borrower transparency, the platform is built for today’s evolving compliance and customer demands. Watch as The Basis Point breaks down the ROI and strategic impact of Sagent’s servicing tools.
#MortgageTech #FintechInnovation #LoanServicing
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NewsTranscript
00:00Hello to everyone in the HousingWire community. I'm the BasisPoint founder, Julian Hebron,
00:04and welcome to Housing Stack Live. This is a live demo collaboration between HousingWire
00:09and the BasisPoint launched at the Gathering Annual Conference this year, and it's where
00:13we take a look at key parts of the mortgage tech stack by category. And today we're covering the
00:19state of mortgage servicing fintech with special demo guest, Sajin. We're going to look at Sajin's
00:25Dara system of record with their CTO, Omer Farouk. And before I tee up Omer, let me just set the
00:32stage with a few notes and slides. Originations, as we know, over the last 30 years has produced
00:392.02 trillion in new loans per year. And even as big as that is, and as reliable as that has been,
00:48servicing is still the bigger opportunity at 14.5 trillion in mortgages outstanding as of the
00:53current quarter in 2025. And most time with customers is in loan servicing. So if we're
01:00viewing this entire life cycle as one, you've got the borrower for between 1 and 12 months in a long
01:08lead purchase cycle like we're in now. But if we're doing our jobs right, and if the software is helping
01:14us do our jobs right, you've got the customer for the life of the loan in servicing. And here are all
01:21the things that are happening across originations and servicing with respect to customer care and,
01:29of course, help with hardships. Those are the core kinds of things that servicing systems of record
01:34like Sajin do. But helping borrowers engage on home search and valuation for the purposes of home buying
01:40and selling, figuring out refinance or other cash out opportunities potentially for home improvement,
01:46and, of course, cross-sell of other products, which is especially important for bank lenders,
01:51but non-bank lenders alike.
01:54So the questions are, then, what's the role of fintech in the mortgage life cycle? How are you powering
02:00this lifetime customer experience? And critically, and this is something that Sajin and Omer are going to
02:06address today, does your tech stack truly enable easy interoperability across this cycle,
02:13not just within all of the functions of consumer and core and default servicing,
02:22but also creating this endless servicing originations loop, which goes to the concept of
02:29retention, of course. And we know from the latest stats that retention has nowhere to go but up as an
02:38industry average, which is right now at 24%. But if you look at category leaders, including
02:46leaders like the types of firms that Sajin powers, you know, the gold standard out there right now
02:52today is at 83% retention. So how does everybody get to this retention level? This is something that
03:00Omer is going to address, and we're going to talk about in our Q&A. And then, of course,
03:04with respect to costs, just a couple quick notes on costs. Performing and non-performing costs per loan
03:11are about $180 and $2,000 per loan, respectively. That needle hasn't moved a lot in the last 10 years,
03:21but it's going to start moving as this tech like Dara by Sajin is maturing. And if we zoom in on the
03:28$180 per loan, what you've got in this pie chart are all the costs. And then, you know, we just call
03:37out the top three here on the left part of the slide, where customer service systems themselves
03:43and loss mit, hardship help, etc. are the top costs. So the systems costs have gone into modernizing the
03:53systems and a system like Dara by Sajin comes in and is then able to help shrink, this is the basis
04:00points thesis, all the other elements of this pie. So with that said, this is what Omer is going to
04:09talk about today with the Dark Horse system of record. He's going to walk us through a recast scenario
04:16because you can't demo an entire system of record in the time we have allotted today. But we are going
04:20to use the Q&A to then zoom out from a particular use case and talk about how that use case does have
04:28implications across the entire customer experience with the broader system of record. So with that,
04:35Omer, I'm going to turn it over to you and you can take it away and then we'll come back and do some
04:39Q&A together after your demo. Sure. Thanks, Julian. So folks, what you're looking at right now is our
04:48consumer experience. This is Dara Consumer and this is in production software that handles almost 10 to 12
04:57million consumers being able to log into their loans through various clients of ours, servicing clients of ours.
05:04And what we're showing you today is going to be through the consumer experience, the ability to start a recast
05:15and be able to all in real time engage with a near real time core or servicing platform in the back end and be able to
05:26go through that workflow very, very quickly to show how all of this process that we all deal with from a
05:34servicing standpoint typically tends to take days, if not weeks, and tends to involve phone calls, emails,
05:46correspondences to be able to get resolved from a client and from a consumer and a servicer standpoint.
05:53So we're here on the summary page of this loan and you're seeing that the principal balance is
06:03$313,000. There's 215 months remaining. Maturity date is what it is. You're seeing the payment due is
06:12$19.81 and $0.70. Now, what I'm going to do is just like you would as you are a customer who has a loan
06:22with, you know, with, you know, Skystream servicing, you'd make a payment. But instead of making the monthly
06:28payment, I'm placing a large principal curtailment to it. And I'm going to trigger that today.
06:39I'm going to do this just as they would be doing it here. And as you're seeing, this is fairly, you know,
06:48modern UI that allows you to do a payment as well as this nuanced use case all online. And what I want
06:58you to pay attention to is the ability to self-service and be able to get through this. So here you're
07:04looking at, I'm making this payment or proposing to make this payment. It's going to tell me it's a
07:10large principal curtailment, which equates to a recast request. This will re-amortize your loan in order
07:18to lower your mortgage monthly payments. It won't impact the interest rate or the loan term. I'm good
07:24with that. It is going ahead and processing this. It says it's done. So the recast request has been
07:30submitted now. Now let's go take a look at what's happening on Dara. So this is Dara core. This is the
07:36operator experience, which you saw so far was the consumer experience. This is the operator experience.
07:42And what I mean by the operator is these are the servicing operations folks, be it on the call center
07:46or in the back office that are managing day-to-day activities on a servicing portfolio. So as you can
07:54see, this is geared towards them. I have slightly elevated access. So you can see loan-related
08:00information. That's this screen here, investors, cash, admin, et cetera, et cetera. So this
08:06has a whole bunch of capabilities that I will not be able to go into. I'm going to go straight
08:11and dive into my work and see what's in my queue. And right here, you're seeing that I have
08:17a request for recast to review and approve. It's not assigned yet. I'm going to be able to
08:24assign it. I'm assigning it to myself. I'm starting this task. And now I'm going to go into the actual
08:34loan. From here, I'm going to go to the amortization tab because that's where it'll show as the recast
08:41request. I'm going to edit this. Everything looks good. I'm going to approve it on today's date.
08:49I'm going to say this was for a recast request. Fairly straightforward, very wizard-driven. And as you
08:59can see here, this was the amount. And now it's actually going to change. And it's telling you
09:04that this PI amount is actually going to change. Now notice here, and I'm pausing here for effect
09:08also because you're seeing the balances, you're seeing the total due is reflected. The two things
09:15you probably didn't notice was this used to say 313, but because we posted a large recast, it already
09:22applied it to the principal. All it's waiting for is determining where it should be applied. And that's
09:28what we just approved. So as soon as I do this, the principal and interest and the total due is
09:33going to change. And right there, you're seeing that that's changed. And when you see this from a cash
09:41transaction history standpoint, you're going to be able to see that I was able to apply the
09:46curtailment right here. And that's what it was applying to. Second, you're also going to see, and this
09:54is exactly how user intuitive this is even for the borrower or the consumer and operator experience.
10:00So when you see here, from a request standpoint, the request is here, it is very easy to actually
10:08go through this and understand what happened. You can also go straight up to loan activity and see all
10:14of these activities that have just occurred on this at this particular time. So, you know, what's
10:20really happened right now is we've just gone through and finished the actual application of a recast.
10:27We've applied it to the balances in real time. And when you now go and see the actual care experience
10:35for this loan, and I'll just refresh the page, you should be able to see that the amount is actually
10:42reflected in real time. So those are the kind of improvements and revolutionary changes that a near
10:51real-time core that can integrate with a modern consumer experience and how all of that ties into
11:00what are the next three pillars of our equation. Open ecosystem, which means APIs that can be engaged or
11:07experienced with through your consumer experience, through our consumer experience, doesn't really
11:12matter the near real-time availability of the data, as well as the elastic nature of this to be able to
11:18handle transactions for whatever volume we're going to be expecting to see, especially at the start of
11:24the month, the middle of the month or at the end of the month. That's wonderful, Omer. I want to jump
11:29right in with some questions. In fact, if you could leave it on, well, it's okay, you don't have to leave it on
11:34the screen because you did already point it out. And just to verify, for everybody that's listening
11:41and watching this, this is revolutionary because in servicing, a recast like this typically would take,
11:49instead of what we just saw with servicer and borrower, totally real-time, how long does it take
11:56typically before innovation like this? So typically, first of all, you don't have these requests on your
12:01website, on your consumer-facing website. What you do have is a phone number to call or a chat
12:07experience or a correspondence. So you can send in a letter or you can send an email, right? So these
12:12other three mechanisms invariably are offline in nature. And what ends up happening is you send a
12:17request through these channels and then you wait. The only one you don't wait on is the phone call.
12:23When you have a phone call, you're still waiting on the line to be able to get somebody to help you.
12:28And once they understand what you're doing, they might read out you to somebody else
12:32and on and on it goes. So my expectation, and again, just by looking at these, we call them the
12:41most frequently tackled scenarios where a call is needed, an email is needed, a chat is needed.
12:49They tend to go for days, if not weeks, simply because there's a lot of clarification
12:56and alignment that needs to happen between the person who is able to do this and the
13:00person who wants to do this, AKA the consumer. So this is where the cost savings comes in,
13:07correct? Because again, on the servicer side, if you're not having to do all of this work with people
13:13that have to go track down the data each time and make sure that each step of the process,
13:17everything happens. This is all happening all at once. And this is where, when we think about
13:23customer service reps spending their time on highest and best use, more complicated use cases,
13:29that's what this is about, correct? Yes. And more importantly, right, what this does is even
13:34for the operators, it lands you right with the context to what is needed, as opposed to go figure
13:41out and try to data entry that in. So I didn't demo this or demonstrate this. But if you think about it,
13:48if the customer is calling you because they're not savvy enough to do the principle only curtailment
13:53online, and they're calling you, you can do the exact same flow on the operator side and trigger a
13:59recast on behalf of the consumer. And, you know, it's going to be the exact same flow, exact same
14:06real-time nature, because everything else is already integrated. And this was something I was going to ask
14:11about. So that queue-based workflow, my work, when I go in there, that's what I'm getting is I'm getting
14:21what are my priorities for the day as a servicer, customer service rep, correct? And is that true,
14:29not just for recast, but is it also true for basically whether somebody has a question about
14:35anything from an escrow change to, say, a hardship? That's all that queue-based workflow.
14:43That's how their days are structured. Absolutely. All of that is the exact same way.
14:48And the only thing I didn't show here is the queue assignment is something I did manually. But in a
14:55production scenario, you would have queue assignments based on teams or departments,
15:00or you do what we call as a concept of get-next. So depending on who is available,
15:05when they hit a button called get-next, they'd be able to get to the work, or the work would be
15:10presented to them based on what's urgent, what's next, what's most important.
15:15And on that note, I'm going to segue a little bit because this was one use case on a massive
15:19system of record called Dara Bice Agent, right? In more complex use cases, like say a borrower
15:25requesting a hardship help. I've had the privilege of hosting you on stages before where you walk us
15:34through that, but before this advanced state of Dara. The question now that I have is hardships
15:40typically require back and forth conditions and things that the borrower has to provide to the
15:46servicer who then has to sign it off. And that goes back and forth. How real time is all of that now?
15:52So every action generates an event in the platform. And every event is consumable in real time by your
16:05applications, your, I'll call them, you know, endpoints that are using this information today
16:13in a batch environment. So today you probably have, and the clearest example I can give you is when you
16:18do outbound call campaigns today, you probably have to wait for the end of batch last night,
16:23and use that as your starting point and generate, hey, team member A call person, call the first one
16:30on the record, the next record, team member B, team member C and on and on you go round robin.
16:37But that information might already be stale because it was last night.
16:41Here, you can actually consume the events and determine what your outbound call campaign can
16:47be in near real time, because all of those events get transmitted or generated the moment
16:52those activities occur. And that's what I tried to show you in this sequence of things that we did.
16:58We did a lot of things very, very quickly. So it was probably hard. But if you actually slow it down,
17:02given that this is a recording, you'll actually see that we were able to generate events. And I kind of
17:07stayed on the loan activities tab, as well as the cash transaction history tab, to show you what
17:12are all going on. And that's just an example of what's happening across the platform in this
17:18event driven manner. So near real time APIs, events that get triggered and get consumed in real time,
17:26which then allows to more real time based decisioning that you can do on your endpoints.
17:31Thank you. Two more questions, one of which you just answered. Well, you just brought up,
17:36but I want to ask a specific question about APIs. Can servicers use APIs? Because yes,
17:42the DARA interface for consumer is modern, but servicers especially often want their own UX for
17:50their consumers. So they're just consuming your APIs to then build their own custom consumer experience,
17:57if that's what they choose, correct? Absolutely. So we've got, just to give you,
18:01I mean, we, we eat our own dog food. So our APIs are consumed by our consumer experience and DARA
18:07consumer is already, you know, managing 38 odd client experiences, and they all look very different.
18:14So the flexibility that you'd expect from a platform to manage your templates and your look
18:19and feel and your color schemes, et cetera, is already in place. And then if you still desire
18:25to have your own consumer experience for a variety of reasons, which are all right,
18:29you should be, because like I said, we eat our own dog food. So our APIs can be consumed by your
18:34consumer experience and you should be able to manage that just like we do. Thank you. And then one more
18:40related question to close us out here. Servicers and consumers obviously win with, with a system
18:46that is getting to this level of modernization and servicing, which has taken a while, but servicing's
18:52hard. We know this. What about others in the rest of the ecosystem? Is it all open and free APIs for say,
19:00partners that want to integrate with a massive system of record likes agent attorneys that are doing
19:05foreclosures, all these other kinds of people that need to get to the system and use it? How do they
19:10use it? That's a good question. So we in January or February also announced the attorney portal,
19:17which is another example of using our APIs and opening up a portal for a partner pro persona that
19:25allows them to be able to engage in the same ecosystem. So they get to see what they need to see,
19:30but it drives the work either on behalf of the consumer or on behalf of the operator within the
19:36servicing system of record. And then just, you know, make all of that seamless because it's all
19:42happening on one unified platform. It's just the endpoints may look a little different because they
19:48are targeted or geared towards those personas. So thank you, Omer. And just to round this out for
19:54everybody, as I said up front, uh, how do servicers actually lower costs? How do you actually create
20:03customer for life and turn it from a catchphrase into reality? I think what y'all just saw from
20:09Omer and his team at Sageent with the new dark core platform, as he said, go back and have a closer
20:15look. If you want to slow it down, you'll see that there's so much detail in there. Omer, this is,
20:20this has been something y'all have been talking about and to get live eyes on it is, is a great
20:26gift. So thank you all for doing it for us today. Absolutely. Thank you. All right. Well, thank you
20:31again, Omer. And, uh, thanks to everyone who is listening to housing stack live today on the state
20:38of mortgage servicing fintech. As you can see, Dara by Sage and is truly upping the game in mortgage
20:45servicing, uh, with their system of record that goes across consumer performing and non-performing
20:52servicing. And it's truly leveling everything up and changing the housing stack for servicing in our
20:59industry. So I just want to say thanks to Sageent and thanks to housing wire for hosting housing stack
21:05live and driving the industry forward.
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