Servicers face growing compliance obligations while managing an increasing number of servicing transfers driven by industry consolidation. Each transfer requires heavy lifting from servicers to validate large volumes of loan data and supporting documents before they can confidently administer the loans. These transfers, Eggers said, often include thousands of pages of documents, payment histories and servicing notes that must be reconciled with the data loaded into a servicer’s system of record. “The servicers today need to ensure that they are prepared for the wave of defaults that may be coming,” Eggers said. “I think it will largely be contained because of that bifurcated story and because of equity that borrowers have in their homes.”