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On the heels of a year marked by extreme weather and natural disasters,
a global pandemic, and record-breaking origination and refinance volumes,
those who work in the mortgage industry have certainly felt the impact of
these events on their lives and livelihoods. Operating in a business-as-usual
manner was not possible in 2020, and likely won't be for quite some time
as volumes—though tapering off a bit—continue to remain steady. With
experts predicting another tumultuous hurricane season ahead, servicers
should work to identify issues that may leave their portfolios open to risks
as early as possible, to prepare for the road that lies ahead.
I've been in the flood business for 30 years,
and I have seen servicers face many challenges
throughout that time. While much has changed
in that time span, servicers must continually
consider the following factors when it comes
to managing their portfolios: risk mitigation,
streamlining operations, minimizing losses,
reducing costs, and elevating the borrower
experience. Tools and technology, coupled with
a strong flood determination and tracking
partner who can help inform decision making,
can help servicers better manage their flood
portfolios and make the process more efficient
in the end.
Here are the top five most common
challenges servicers face when managing
properties in their flood portfolios, after the
initial flood zone determination has been
completed and the loan is closed.
1. LARGE REVISIONS THAT AFFECT
THE PORTFOLIO
Over the years, the Federal Emergency
Management Agency (FEMA) has undergone
a map modernization process, improving the
products used for making determinations and
updating paper maps to digital images. rough
the FEMA Map Service Center process, new
Feature By: Mike Hanson
FIVE COMMON
CHALLENGES
SERVICERS FACE
DURING THE FLOOD
TRACKING PROCESS
A proactive approach to flood portfolio management is the right move for
servicers navigating today's extremely active marketplace.
