Sponsored Content from FICS: FICS Celebrates 40 Years of Excellence in Mortgage Software: A Journey of Innovation and Resilience.
If you think back to 1983, it was a completely different world. Mortgage rates were above 13%, and 1983 is considered the official birthday of the Internet because of the new protocol called TCP/IP. That year, FICS® (Financial Industry Computer Systems, Inc.) was born when its founders created the first version of Mortgage Servicer®.
FICS stands as a testament to the power of innovation and resilience in the ever-evolving world of mortgage servicing software. Powered by an unwavering commitment to solid investor reporting, customer service and compliance, FICS has endured and thrived as one of the longest-running mortgage software companies in the United States.
FICS Built on a Vision That Endures
Founded in 1983 by Carl Gahan and John Saar, FICS emerged when the mortgage industry significantly transformed. Gahan, who had a wealth of experience as a consultant in the mortgage industry, recognized a critical need in the market. Small mortgage companies struggled to compete with industry giants due to the high costs associated with service bureaus and mainframe-based software.
Inspired by the burgeoning personal computer revolution of the early 1980s, Gahan and Saar created a solution to level the playing field. They envisioned mortgage servicing software running on PCs, offering smaller mortgage companies a cost-effective alternative.
In those early years, personal computers had limited capabilities compared to today’s standards. Yet, FICS blazed a trail by developing mortgage servicing software that provided essential functions, including loan-level windows, payment processing, investor reporting, and T&I analysis. These foundations would prove instrumental in FICS’ journey over the decades.
Gahan wrote the company’s vision statement in that first year, and that vision has never deviated. FICS employees are reminded daily to pursue the FICS vision:
“FICS will provide reliable, efficient, economical, and accurate loan processing and servicing software to the mortgage industry. Our customers deserve, and will receive, the finest service, training, and support ever offered by any software organization.”
This unwavering commitment to customer service and excellence has been a cornerstone of FICS’ success. The lesson has carried them through four decades of innovation and adaptation.
Changing Landscape, Timeless Principles
The mortgage servicing industry has changed significantly over the past four decades, with automation and software becoming central to operations. However, the importance of certain principles has remained constant:
User-Friendly Software: In an increasingly digital world, user-friendly software is paramount. Mortgage servicing software must empower users while simplifying complex tasks.
Regulatory Compliance: Regularly updating software to meet changing regulatory requirements is as crucial today as in 1983. Staying abreast of industry regulations is essential to success.
Outstanding Customer Support and Training: Exceptional customer support and training are essential to any successful mortgage servicing software provider. Ensuring customers have the knowledge and assistance they need is a timeless principle.
Investor Relations Key to Servicing Success Across All Decades
One key to 40 years of success is maintaining investor reporting as a cornerstone of Mortgage Servicers’ functionality and establishing solid relationships with the Government Sponsored Enterprises (GSEs) early on allowed FICS to gain recognition and recommendations from these entities. This paved the way for FICS’ robust and affordable mortgage servicing software to meet their reporting needs and compliance requirements. By providing real-time functionality, FICS empowered financial institutions to maintain compliance while efficiently servicing mortgage loans.
Mortgage servicing software must be updated regularly to accommodate investor reporting and regulatory changes such as forbearance and natural disaster deferrals. Without regularly updated software, servicers must rely on time-consuming manual reporting for these special programs. Mortgage Servicer’s decades of comprehensive investor reporting functionality for Freddie Mac®, Fannie Mae®, Ginnie Mae®, Federal Home Loan Bank, and many private investors has simplified investor reporting and accounting.
Addressing Modern Challenges
Today, mortgage servicers face unique challenges. These challenges include staffing issues, the need for work/life balance, and managing increased delinquencies. FICS understands these challenges and continues to evolve its solutions to address them.
FICS’ Mortgage Servicer is pivotal in bridging the staffing gap by providing borrowers with real-time access to their mortgage information. This not only reduces call volumes but also enhances borrower satisfaction.
Moreover, FICS’ commitment to automation empowers servicers to proactively manage periodic increases in delinquencies. By helping borrowers stay current and work toward solutions to avoid foreclosure, FICS remains a trusted partner in the industry’s success.
As FICS celebrates its 40th anniversary, it does so with a rich history of innovation, resilience, and commitment to excellence. The lessons learned over the decades have contributed to its enduring success and continue to guide the company as it meets the evolving needs of the mortgage servicing industry.
With user-friendly software, regulatory compliance, and unwavering customer support at its core, FICS remains a beacon of innovation and service in the mortgage software industry, poised to tackle future challenges with the same determination that fueled its inception in 1983.
Susan Graham is president and chief operating officer of FICS® (Financial Industry Computer Systems, Inc.), a mortgage-software company specializing in mortgage origination, residential mortgage servicing and commercial mortgage servicing software for mortgage lenders, banks and credit unions. FICS has delivered exceptional automation, performance, system support, and value for more than three decades. Customers save money through a low initial investment, fixed and controllable costs and enhanced productivity. FICS’ software uses Microsoft .NET Framework and provides document management and web-based capabilities as well as the flexibility to choose an in-house or cloud hosting solution. Visit www.fics.com.
(Sponsored content includes material submitted independently of the Mortgage Bankers Association and MBA NewsLink and does not connote an MBA endorsement of a specific company, product or service. For more information about sponsored content opportunities, contact Bill Farmakis at bill@jlfarmakis.com or 203/834-8832.)
