The Intelligent Mortgage Servicing allows Exact to monitor the credit performance of existing customers to identify changes in behaviour and provide up to date risk assessment. Exact can then apply an appropriate collection strategy to loans for each borrower, satisfying both TCF requirements and making the most efficient use of a lender’s servicing budget.

Alan Cleary, managing director of Exact Mortgage Experts, said: “We saw a niche for Intelligent Mortgage Servicing in a market where incumbent servicers are relying on letter sending and telephoning but with no real thinking behind it. Lenders need to be intelligent about how they approach arrears management or they will lose more money than is necessary – the underlying asset value no longer provides a buffer when things go wrong with the borrower’s ability to pay.”

He added: “In the past servicing has been seen as a dull, process driven series of cogs – send out a letter, send out another letter, send out a third letter. The mortgage industry is a very different beast now compared to two years ago and TCF has to be a lender’s top priority. It is not just about fulfilling TCF obligations either: in the current economy, a badly managed mortgage book has the power to bring an organisation to its knees – we have already seen it happen.”