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60 up to servicers and service providers to become more proactive in their efforts before, during, and after such events. According to David Hughes, SVP of the Contact Center at RoundPoint Mortgage Servicing, efforts such as "monitoring potential threats and actively preparing potentially impacted borrowers, as well as integrating previously disjointed activities such as customer outreach, loss mitigation options, and loss draft processes into a single unit, as well as designing and preparing that dedicated team so it can quickly scale to the size of the disaster," are just some of the steps that servicers have learned to take. LOOKING BACK As the occurrence of natural disasters becomes more commonplace, the need for a robust and stress-tested disaster response plan has become clear. However, the flexibility of these plans is also crucial. "Because each disaster from 2017 and 2018 has been somewhat unique, industry participants have had to ensure disaster plans are not too prescriptive," said Jake Williamson, VP of Collateral Risk Management at Fannie Mae. He explained that flexible disaster response plans are "more about the coordination of the response activities versus the response activities themselves." ey need to address how to coordinate across different stakeholder groups (both internally and externally), how to manage the data received from the various sources (boots on the ground, call centers, social media, inspections, etc.), and who is on point to address each process challenge. Recent research by the Urban Institute, funded by JPMorgan Chase, found that disasters lead to broad, and often substantial, negative impacts on financial health such as credit scores, mortgage delinquency, and foreclosure rates. is makes it even more imperative for servicers to be prepared to streamline loan modifications and forbearance programs while planning their strategy for such events. "Do not underestimate the effect of these events on your customers and your portfolios," said omas O'Connell, SVP of Default Management for Planet Home Lending. "We learned from hurricane Harvey that the customer was not only affected by damage to their property but also by the loss of income due to businesses closing for long periods. Servicers need to determine which customers have been affected early and streamline the requirements for forbearance or modification." Research also suggests that, despite advances in technology and processes, property damage assessments tend to be far from perfect, causing some households to get left behind during the recovery process. "Our industry has learned that it's critical to identify at-risk properties during the application process, which will help expedite and streamline the review process if disaster strikes those properties and loans," said Gerardo Caceres, SVP of Product Management and Data Operations for Closing Corp. Michael Greenbaum, COO of Safeguard Properties, added, "Hurricane seasons from the past few years have been unprecedented. When coupled with disasters like the wildfires in California, a coordinated strategic approach to action is necessary to protect properties." Communication between all stakeholders— including servicers, service providers, government agencies, and the public at large— has therefore emerged as key ammunition in any disaster preparedness plan. COMMUNICATE, COMMUNICATE, COMMUNICATE "In the chaos that occurs around a natural disaster, knowing exactly what your next steps should be for the various scenarios that arise will save time, money, and relationships," said Elizabeth Wright Billings, Pricing and Execution Manager for Churchill Mortgage. Rullah Price, SVP of Wells Fargo Community Outreach, told DS News that communicating early on is key to ensuring that customers know what to do if and when they're impacted by a natural disaster. Wells Fargo uses a variety of channels to ensure that their communication reaches the widest audience, ranging from email to text, ATMs, and social media. is outreach continues both during and after the disaster itself. Hughes said that pre-disaster communication was "critical and should achieve several objectives." ose include informing the borrower of the impending disaster, providing recommendations from the Federal Emergency Management Agency (FEMA) on how to prepare, letting borrowers know about the financial relief options available with their lender—especially if their income is impacted by the disaster, advising them to contact their insurance company to start the claims process, ensuring the borrower understands the servicer's role once the claim process is completed, and providing information for additional available resources through the government. "Do not be afraid to go above and beyond to get the homeowners prepared with proactive preventative measures," said Bryan Lysikowski, Co-Founder and CEO of ZVN Properties Inc. "Encourage flood/hurricane insurance and provide borrowers with information as to how they can purchase the required items to protect the asset." It is also advisable to have a single, dedicated point of contact. "is contact can more efficiently assist the borrower and manage the processes in a more comprehensive manner," Williamson said. It is as important for businesses to assure customers that, despite the disaster, they remain up and running to serve them. "During emergencies, when it seems as though the world is turned upside down, customers just want to know something is safe and secure," said Steve Comer, Director of Financial Services and Insurance Sales for Hyland. "Executives and IT departments should be able to assure customers that their investments are secure, business is open, and they are ready to serve and assist as needed. But that assurance can only be provided if the right security plans are in place from the start." Billings agreed. "Overall, clear communication and clear expectations from all representatives of your company will reduce stress in an inherently chaotic situation, although the type of disaster dictates how the communication occurs," she said. Having a disaster response team in place well in advance can make all the difference between providing borrowers with timely information or leaving them in the lurch. "Servicers need to establish a disaster response team for both outbound and inbound inquiries in the call centers," O'Connell said. "Team members should be trained on all relief measures. Inbound activities should be a one- "During emergencies, when it seems as though the world is turned upside down, customers just want to know something is safe and secure. Executives and IT departments should be able to assure customers that their investments are secure, business is open, and they are ready to serve and assist as needed." —Steve Comer, Director of Financial Services and Insurance Sales, Hyland

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