Last year was a whirlwind for servicers. Record numbers of homes entered into default and foreclosure statistics were front-page news a across the country. Servicers were busier than ever analyzing portfolios, working on loan modifications and dealing with buybucks. Outsourcing has become a popular trend for servicing, and there are times when outsourcing is more cost-efficient and benefits the borrower. Ultimately, the decision of whether to service loans in-house or through outsourced partners will come down to two key factors: cost and customer service. However, there are many variables that can impact these factors, including the lender's business type, volume, compliance needs and staffing resources. The first major factor to consider is the impact of a lenders charter. Lenders must also account for maintaining overall compliance with the various regulatory agencies and investors. The final consideration lenders need to take in selecting their path to servicing is the resources they have available -- both personnel and technology.