Source One Mortgage Services
Farmington Hills, Mich.
Source One catapulted to the upper echelon of subservicers this year when it agreed to subservice $17 million of servicing that it was selling to Chase Manhattan Mortgage.
"We're spending all of our time doing everything we can to make Chase happy with us," said Robert R. Densmore, senior vice president of the company, which was the 21st-largest mortgage servicer last year.
Mr. Densmore said Source One is busy trying to attract more customers.
It has three subservicing contracts pending.
"We'll explain what we can do for the customer and hopefully they'll make an economic decision to choose us," he said.
Fleet Mortgage Group
"Fleet is not an active participant in subservicing. Currently we're focusing on our own capacity," said Mike Zarro, vice president of loan servicing.
Fleet, the fourth-largest mortgage servicer, services more than 100,000 loans and has a portfolio exceeding $120 billion.
Mr. Zarro said Fleet subservices a very small number of loans, totaling about $500 million, but the company has "limited interest" in seeking out new subservicing clients.
Banc One Mortgage
"A lot of people only do originations well. We can add value to a lot of shops," said David Pipher, Banc One Mortgage's vice president and national sales subservicing manager.
Banc One, which ranked 25th among mortgage servicers last year, is currently subservicing about 70,000 loans, Mr. Pipher said.
The company does some of its subservicing on a private-label basis. This makes some servicers more willing to choose Banc One as a subservicer since it will service the loans under the original servicer's name.
"Deciding to outsource is a hard decision for people to make. People have been servicing since Noah came over on the ark," Mr. Pipher said.
Although its subservicing volume is nominal, HomeSide, which works in partnership with Barnett Banks Inc. and BankBoston Corp., would take on subservicing "if it was the right situation," says Kevin D. Race, chief financial officer.
The key, Mr. Race said, would be a commitment from the lender to having future originations serviced by HomeSide as well.
"Once you get some subservicing, you have to replace loans that are running off, you need to find a way to add loans one way or another," he said.
"We believe our core competency is servicing loans. If you look fundamentally at our two bank partners, in a sense they are outsourcing their servicing to us," Mr. Race said.