Key facts
- Mortgage subservicer performance benchmark shows a 27-point gap between top and bottom performers.
- Recapture and marketing support was the lowest-rated category in the survey.
- An estimated $12.7 billion in production volume was lost due to recapture and marketing support issues.
- 25% of surveyed firms had never formally evaluated their subservicing relationship.
- 56% of firms cited transfer risk as the main reason for staying with their current subservicer.
Garrett, McAuley & Co. on Wednesday released its PULSE Subservicer Benchmark, a new performance evaluation for the mortgage industry based on feedback from 53 mortgage banking firms. The benchmark revealed a significant 27-point disparity between the highest and lowest-scoring subservicers, with composite scores ranging from 53 to 80 out of 100. The survey highlighted recapture and marketing support as the weakest area, contributing to an estimated $12.7 billion in lost production volume for participating firms. Many lenders continue to use subservicers based on initial pitches rather than ongoing performance measurement, with 25% never conducting formal evaluations and 56% citing transfer risk as a reason to stay with existing relationships, even those with below-median satisfaction.