DS News

20 Amy Neumann manages all aspects of Flagstar's Foreclosure Operations and Oversight, including Flagstar's Default Attorney Network. She oversees the foreclosure functions performed by multiple servicing vendors and attorneys, as well as the in-house foreclosure operations at Flagstar. She joined Flagstar in September 2015 from Trott & Trott, P.C., where she was a Senior Managing Litigation Attorney. Neumann has over 10 years' litigation experience, specializing in mortgage banking, default servicing, and defense of regulatory compliance claims on behalf of financial institutions. She graduated with a B.A. from Oakland University and received her J.D. from Wayne State University School of Law. Neumann recently spoke to DS News about how technology is changing the industry, the importance of disaster preparedness, and what trends to look out for in the months ahead. HOW IS TECHNOLOGY CHANGING THE INDUSTRY? Tech provides a significant lift to the overall process, ultimately resulting in the ability to build better reporting. Effective reporting produces better metrics. e data that tech yields can result in significant operational gains through strengthened transparency and controls. However, there is a cost—taking advantage of technology requires resources and investment. Balancing the cost of these benefits against competing priorities is a constant challenge. WHAT ARE THE MOST CHALLENGING ASPECTS OF MANAGING THE INTERACTIONS BETWEEN SERVICERS AND THEIR VARIOUS PARTNERS? It is so important to actively manage the communications between firms and servicers. Ongoing training and use of internal escalation protocols are imperative for meeting client expectations. If someone on your staff indicates that communication with a client is futile, that is a red flag that something is broken and must be addressed. In my experience, a passive management of this area leads to costly issues for both servicers and firms alike. WHAT ARE THE BIGGEST CHALLENGES CURRENTLY FACED BY SERVICERS OPERATING IN THE DEFAULT SPACE? FOR THE LAW FIRMS THAT ASSIST THEM? States have continued to flex their consumer protection muscle by creating legislation aimed to reach their objectives. As a result, compliance is becoming more complicated and expensive. I appreciate our law firm partners more than ever as they assist us with navigating the ongoing state law changes—not only from a purely legislative aspect, but especially when it comes to interpreting new laws at the state level. e importance of staying on top of this FIVE MINUTES WITH GET TO KNOW INDUSTRY EXECUTIVES BEYOND THE BOARDROOM Amy Neumann VP, Manager, Foreclosure and Default Counsel, Flagstar Bank rapidly changing landscape requires careful attention and dedicated resources. Low volumes combined with increased risk and compliance expenditures have been an ongoing issue. ere is a valid concern that even a modest increase in volume could be problematic across the board, as default firms have been operating within a period of austerity, necessary for survival. WHAT HAPPENS WHEN THERE IS AN INEVITABLE DOWNTURN AND VOLUME INCREASES? WILL THERE BE ADEQUATE RESOURCES AVAILABLE TO ADJUST QUICKLY WHILE MAINTAINING THE HIGH LEVEL OF COMPLIANCE ESSENTIAL FOR SUCCESSFUL OPERATIONS? Advance consideration of the implications of a shifting economy on the industry will help us all to be better prepared for the future. Another area of concern is default's role in dealing with disaster impacted properties. Disaster declarations have been growing annually putting pressure on every aspect of default from loss mitigation to property preservation. Developing an effective strategy to address these situations holistically can avoid delays and the additional costs associated with servicing these impacted properties. HOW CAN SERVICERS WORK TO SUPPORT BORROWERS THROUGH FUTURE NATURAL DISASTERS SUCH AS STORMS AND WILDFIRES? As with any good business practice, advance preparation is critical. Servicers should ensure that there is a proactive plan in place to service the loans while keeping customers informed and engaged. Disasters can be an opportunity to get creative. Bottom line, measures need to be in place and ready to deploy. WHAT ARE SOME OF THE MOST SIGNIFICANT CHALLENGES FACING THE INDUSTRY HEADING INTO 2020? HOW CAN SERVICERS WORK TOGETHER TO SOLVE THEM? Cybersecurity remains a critical challenge. Technology has advanced the industry considerably, but at great expense resulting from the escalating costs of maintaining effective security protocols. WHY ARE EVENTS SUCH AS THE LEGAL LEAGUE SUMMITS IMPORTANT? ey provide an opportunity to meet the people that you rely on everyday to keep your business moving forward. Discussing topics of mutual interest can garner insights and novel solutions to the latest challenges facing the industry.

• Cover