Optimizing Loan Collateral File Management

Download PDF

Loan Collateral Challenges For Servicers:

Mortgage lenders and Servicers must carefully safeguard the collateral documentation that supports their mortgage and loan portfolios to protect their interests – as well as protect lender and investors’ claims – should the borrower ever default during the lifecycle of a loan. In many cases, especially when the loan is packaged as part of an asset-backed security, this may involve the use of an Investor-mandated Document Custodian who, by definition, must be part of a regulated financial entity, and must adhere to stipulated safeguards such as two-hour fire suppression and security protocols. This challenge is even more prevalent for Servicers that acquire MSR portfolios as the Servicer may not have an easy way to confirm that the loans have the appropriate collateral documentation should a default or regulatory problem arise.

Even when working with Custodians, Servicers are frequently taking a more proactive role vetting collateral documentation, prolonging the interaction with the original loan collateral, and creating the need for enhanced storage and security. Servicers are challenged with tracking the numerous Custodians that support their portfolio’s collateral management, and ensuring that appropriate security protocols are followed in-house while they are directly responsible for the collateral.

The Solution Includes:

Collateral Vault Management Services (onsite & offsite):

Leverage Iron Mountain’s expert records management staff to fully manage or partner with your team to manage your loan collateral vault and workflow either onsite at your facility or within the security of a dedicated Iron Mountain vault.

Vital Document Vault Rentals:

Continue to leverage your own personnel to manage your loan collateral from within a secure Iron Mountain facility with dedicated vault space – enabling you to have full confidence that your vital documents are protected.

Collateral Document Imaging and Validation Services:

Digitize collateral documents as your needs dictate – leveraging Iron Mountain’s automated classification solution to identify core document types and flag missing documentation.

Loan Tracking Software:

Leverage Iron Mountain’s Accutrac® record management software to centrally manage and track your loan collateral files from inception through custodial management and any interim access needs – wherever the records reside.


74% of Servicers use an external Document Custodian to safeguard the original loan collateral for at least a portion of their Mortgage Servicing portfolio; of which +40% use more than 6 different Custodians.

– Source: Media / Iron Mountain Survey Results; October 2015

Loan Collateral Challenges For Custodians:

On the flip side, Custodians face increasing pressure from stakeholders to ensure careful management and validation of the documents they safeguard as well as heightened demand for large volume transfers and re-certifications as MSR portfolios continue to change hands. Many custodians are therefore encountering the need for infrastructure and workflow investments that may be challenging to finance internally. .

Addressing Your Loan Collateral Challenges:

As a trusted and leading information management provider to the Financial Services industry, Iron Mountain has developed a suite of solutions to support both Servicers and Custodians in their management of loan collateral files.

Working with you, Iron Mountain can help you to create a more cost-effective vault management solution. By leveraging our records center process engineering and technology expertise, and by working alongside our team of records specialists, you can ensure secure, efficient and traceable management of your most vital loan collateral while minimizing upfront capital investments.

What You Gain

  • Reliability: Leveraging over sixty years of proven practices
  • Security: Meeting the strict standards of the mortgage industry
  • Efficiency: Streamlining your Workflows
  • Predictable Costs: Minimizing internal resources and your facility upkeep