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» VISIT US ONLINE @ DSNEWS.COM 19 It's important to have a strong process in place to communicate quickly and timely, so we're ceasing all foreclosure actions, or the ser- vicer's foreclosure firm is ceasing action. en we can proceed with whatever recommenda- tions we may have in the bankruptcy context. Within the bankruptcy space, what are the particular challenges that you're confronting right now? One hot topic right now within bankruptcy is safe harbors. Essentially, what is considered "reasonable bankruptcy attorney's fees"? at impacts recoverability against the borrower for the servicer, but it's also going a step further right now as far as determining what the proper mechanism for collecting those bankruptcy attorney's fees is once a reasonable amount is set. Another item is just the overall legal landscape. From a bankruptcy perspective, when you have both footprint states and a national bankruptcy practice such as Padgett, you need to be aware of jurisdictional rules, case law that's developing, which changes are happening, and the actions of agencies such as the Consumer Financial Protection Bureau (CFPB). Making sure we are digesting all that information promptly, having proper change- management controls so that we're notifying all attorneys and operations, and then notifying our clients with a recommendation so that they can continue the discussion. It's a daily evolu- tion of those items in the legal landscape. Everyone's interested in what's going to happen with the recent confirmation of Kathy Kraninger to the CFPB. She's mentioned that she wants to pave her own way, so we're all looking to see what that means. What does that chain of communication look like between the firm and your various servicer clients? I'll give you an example. ere was an alert that happened from the trustee that came out of a particular jurisdiction. So we met internally as part of the Attorney Bankruptcy Committee and discussed the effects of that letter. From there, we then created a formal change-management submission. e Change-Management Committee met for us to discuss implementing the change and what that looks like. Once it was approved, we created a pair of email blasts—one for internal and one for external. e internal one concerns what needs to be changed and working with IT and compliance to change the system of record, as well as instructions for the staff and how to better understand that change. We do something similar externally. We had a blast that went to all of our contacts on the list from our various client servicers, and it explained what the notification was, what the change is, what our recommendation is—an easy how-to guide, if you will, with points of contact for escalation. We try to make sure that as we find out things, our servicers do as well, but it's always paired with a recommendation so that we can be helpful to the client. What is it that you enjoy about working in bankruptcy operations? I love managing people—looking at a team, identifying who's best at research, who's best at litigation, who's best at all these different pieces that are needed to make a successful bankruptcy team. I love that daily challenge of that. Bankruptcy is a moving target; there's a structure, but there's also quite a bit of gray. Attacking these problems is a daily challenge, whether it's case law that changes the way that we may look at a litigated topic or a consent order that our client may face. It's just problem-solving. What do you wish more people understood about what you do? e biggest misconception is about what the role of the bankruptcy attorney or bankruptcy firm is. We are an extension for facilitating communication on behalf of the servicer. But the servicer's goal and the servicer firm's goal is to resolve the matter and make sure that it's done compliantly and to the benefit of the borrower. It's that "to the benefit of the borrower" part that people don't quite understand. We are here to facilitate and communicate, but we all want to come to a resolution that's to the best benefit of the borrower. We have the common objective, so let's communicate with one another to figure out what that is. We're not playing on opposite teams; we're playing on the same team. "Bankruptcy is a moving target; there's a structure, but there's also quite a bit of gray. Attacking these problems is a daily challenge, whether it's case law that changes the way that we may look at a litigated topic or a consent order that our client may face." PROMOTING THE WELFARE OF HOMEOWNERSHIP With representation from the BCFP, HUD, FHFA, Fannie Mae, Freddie Mac, Ginnie Mae, and others, the annual Five Star Government Forum is a day-long gathering where leaders in mor tgage servicing and the federal government engage in open dialogue surrounding the protection and preservation of American homeownership. THEPOLITICS OFPROGRESS THE 2019 FIVE STAR GOVERNMENT FORUM APRIL 23, 2019 NEWSEUM | WASHINGTON, D.C. LEADERSHIP SPONSORS CO-HOST SPONSORS HOSTING SPONSOR

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