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Issue link: http://digital.dsnews.com/i/1109050
54 C O V E R S T O R Y / D A V I D W H A R T O N From leveraging technology to the critical human element, here's how servicers and industry professionals are working to guide defaulting borrowers through a stressful time period and back to solid ground. e prospect of losing one's home is frightening and stressful. For our May issue, DS News spoke to servicing executives about how they are working diligently to counsel borrowers through this often-intimidating process, and to help bring borrowers back from the brink of default. From technological innovations that enable accurate prediction of who may be at imminent risk of default, to borrower education programs to help better clarify the process, to the critical human factor, here we explore how servicers are working to make a painful and difficult process as clear and humane as possible. Whether the borrower is ultimately able to remain in their home or not, it's incumbent upon the servicer to guide them through the process with professionalism, empathy, and dignity. Here are the ways modern servicers are striving to do just that. AVOIDING THE IMPACT Not surprisingly, many of those we spoke to emphasized the importance of being proactive in terms of both borrower communication and education. After all, the ideal way to deal with a default is to avoid it in the first place, and ensuring that the lines of communication are open at all times can be critical. "Our philosophy is always to communicate with borrowers early and often, and in as many ways possible," said Courtney ompson, Director of Default Servicing Operations for Flagstar Bank. "From changing the time of day we communicate based on borrower behavior, to tooling and retooiling the message we send, to leveraging multiple means of communication, whether written, telephonic, or electronic–we try to meet the borrowers where they are." "As credit standards are changing and more lenders are entering the non-QM space, we're seeing servicers focus on better identifying which borrowers are at risk of default," said Susan H. Connally, VP of Surveillance