DS News

2 The Not-So-Distant Past and the Imminent Future e housing crisis may be 10 years behind us, but its legacy and lessons linger. Regulators are still working to find a reasonable middle ground that protects consumers without stifling business. Lenders are working to reach eligible borrowers while adapting to what those borrowers might look like in today's economy—perhaps with little or no credit. Servicers are adapting to evolving regulation while working to update their systems with efficient and cost- effective technologies. Our theme for August is preparing for the next crisis, whatever it may be—developing systems and policies that will help us prosper in the current market and withstand the next potential downturn. We know what led to the last crisis, but do we see what is pointing to the next one? What form will it take, and will the industry be ready when it appears? In our cover story this month, "e Big Shortage," we spoke with top economists and industry experts to examine the trends and possible warning signs that could foreshadow trouble on the horizon. While hindsight is likely to keep us from retracing the steps that led to the 2008 collapse, that doesn't mean the industry is immune from a wholly new confluence of problems. In the meantime, servicers can prepare by strengthening their business and their client relationships. Next, Steve Comer of Hyland Software presents "Tech Taking Center Stage." He argues that businesses need to fully embrace technology, applying it to each step of the mortgage process. Doing so will not only enhance their business processes but also improve customer experience. Another factor that may help professionals weather the next storm is bolstering default management now, while defaults are historically low. In "Fortify Your Management Approach," Jorge Ponce, Director of Business Development at FirstClose, encourages lenders to leverage technology and partner with a fintech provider. Finally, we present "Last Line of Defense: Claims Management" for servicers. In this piece, Kelly Conley of KAC Advisory offers a look at how servicers can reinforce their lines of defense to maximize gains and minimize losses on the claims front. No one knows when or exactly how the next crisis will take form, but forward-looking businesses and professionals who embrace technology, focus on their customers, and employ prudent business practices are likely to withstand whatever market fluctuations are to come. And we'll be right here by your side to weather the storm, continuing to bring you the latest market data, informed outlooks, and tips for success. Best regards, Rachel Williams Editor-in-Chief FROM OUR DESK default servicing | in print and online VOL. 16 NO. 08 No part of this publication may be reproduced without written permission from the publisher. ©2018 REO Publishing LLC All Rights Reserved This publication is intended to provide accurate, authoritative, and detailed information in regard to the subject matter covered. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. Under no circumstance should the information contained herein be relied upon as legal advice as it is designed to be a source of information only. DS News strongly encourages the use of qualified attorneys or other qualified experts with regard to the subject matter covered. DS News does not guarantee the accuracy of the information, and is not liable for any damages, losses, or other detriments that may result from the use of these materials. PUBLISHER EDITOR-IN-CHIEF DESIGN ONLINE EDITOR EDITORIAL ASSISTANT ONLINE CONTRIBUTORS COPY EDITOR ADVERTISING DS NEWS 2017-2018 EDITORIAL ADVISORY BOARD Mark Hulme Rachel Williams Jonathon Won David Wharton Kristina Brewer Krista Franks Brock Scott Morgan Radhika Ojha Alison Rich Seth Welborn Dru Murray Suzanne Andresen: 207.443.3314 Kevin McCrea: 214.525.6756 Michael McClure: 214.525.6737 Jason Myers: 214.525.6760 Robert Rakowski: 214.525.6783 Meg Burns, Financial Services Roundtable Kathy Cummings, Bank of America Jordan Dorchuck, BSI Financial Services Malloy Evans, Fannie Mae Yvette Gilmore, Freddie Mac Ramie Word, Nationstar Mortgage Follow DSNewsDaily on CHAIRMAN AND CHIEF CREATIVE OFFICER PRESIDENT AND CHIEF EXECUTIVE OFFICER DIRECTOR OF ACCOUNTING ASSOCIATE GENERAL COUNSEL PROFESSIONAL ASSOCIATIONS American Mortgage Diversity Council, Legal League 100, National Mortgage Servicing Association, Property Preservation Executive Forum FORCE DESIGN Mark Hulme Ed Delgado Ernest Gillespie Derek Templeton Derek Templeton: 214.525.6757 Annie Collier: 214.525.6740 Jonathon Won Sean Walker Jason Stone

• Cover