DS News

56 C O V E R S T O R Y / D A V I D W H A R T O N 56 LOOKING FOR SOLUTIONS In the early months of 2019, default servicing continues on much the same path it's traveled for some time now, with all corners of the industry continuing to try and find ways to thrive in an ongoing low-volume environment. With the cost of servicing non-performing loans increasing, it behooves servicers, vendors, and their partners to explore their systems and processes in order to ensure they're working in a smart, streamlined, and efficient manner. "Fewer loans are going to full foreclosure, and therefore infrastructure costs previously set in place from the 2008 crisis are now being spread over fewer loans, making the per-loan cost of foreclosure much more significant," said Steven Mowers, President, Claims Recovery Financial Services (CRFS). However, Yvette Gilmore, Freddie Mac's SVP, Servicer Relationship and Performance Management told DS News that evolving and innovative technology can help offset those costs. "We understand that, in servicing, we all need to innovate. We must keep up with constant innovation and stay ahead of the technological curve," Gilmore said. With a dizzying array of new technologies continuing to evolve, businesses have plenty of new opportunities to get the most bang for their buck—but only if approach innovation in the right way. For this month's edition, DS News spoke to a collection of servicers, vendors, and government representatives to see what lessons they're learning in the trenches, and what takeaways default servicing professionals can apply to their own day-to-day processes and longer-term plans. MORE WITH LESS In December, Altisource released a "State of the Servicer Industry" report based on their 2018 survey of 200 professionals working in the mortgage default servicing industry. e report touches on several important trends at play in the current servicing landscape—a trend toward consolidation, the importance of compliance management, the ways in which technology can improve efficiencies, but also the crucial nature of interpersonal communication and collaboration. Kristen Estrella, VP, Division Operations, First American Mortgage Solutions, said that one way the industry is adapting is through service providers introducing multi-functional products and technology solutions that enable servicers to do more with less. For example, Estrella said, "Technology solutions now allow servicers to leverage prior title work, which can shorten timelines and lead to quicker decisions for borrowers, as well as potentially increase data integrity." For servicers looking to take ownership of these issues and improve their processes, there's a host of financial technology in varying stages of development and applicability. Just one question: where to begin? "You have to invest to support the work that you're doing, and the default side of servicing is the most complex, labor-intensive piece of the industry," said Denis Brosnan, CEO, DIMONT. "It's challenging to maintain the level of investment needed to handle that work with the

• Cover