The Fitch Group has recently released its U.S. RMBS Servicer Handbook for the most recent quarter. The handbook shows that many banks offering mortgages have halved the number of staff in their mortgage servicing departments during the last two years. The decision to downsize these departments is primarily the result of these lenders seeing their portfolios shrink.
Another reason relates to the number of foreclosures. According to CoreLogic’s National Foreclosure Report released in July 2016, there was a significant decrease in the number of active and completed foreclosures from 2015. With fewer foreclosures to manage, banks no longer needed as many staff.