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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 32 July 2023 F E A T U R E Q: The Mortgage Bankers Association has forecast an economic slowdown and an increase in unemployment later this year and into 2024. How will your company prepare for this shift in the market, and what measures are being taken in advance of this possible shift? Keaton: It is reasonable to assume that delinquencies may begin to increase later this year, depending on the economic climate. Enhancing self-service tools and simplifying loss mitigation processes helps ensure that homeowners needing assistance have a hassle-free experience and get the support that they need. We believe our broad servicing capabilities, particularly our proven leadership and experience in special servic- ing, position us well for this scenario. Kwasny: Regardless of the forecast of the MBA, if you are worth your salt as a servicer, you should be prepared for any change in the economy. For example, in the case of an economic slowdown, where delinquencies would be expected to rise, you should already have robust and dynamic collections and loss miti- gation infrastructure in place that can scale to meet that demand. Conversely, if the economy starts going gangbusters or rates drop and originations heat up, you should be in a position to be able to handle that influx of new customers while still delivering a top-notch customer experience. Regardless of the environment, you need to be able to do it compliantly. Not just because the CFPB is lurking, but because it is the right thing to do. In other words, as a servicer, you need to always be in a position to deal with any short-term market shift or longer-term change in market trends. At Servbank, we unambiguously understand this, which is why we are continually investing so much in our technology, our people, and our processes. Our customers and clients expect superior service, which is why we operate on a footing that is prepared for any eventuality. This is how we have and continue to deliver a 91% one-call resolution rate, 99% customer satisfaction rate, and an industry-leading 84% Net Promoter Score. Not to mention our delinquency and loss mitigation metrics are better than the industry averages. To my earlier point about servicers being able to handle all eventualities, we were able to deliver these numbers even during the height of the pandemic. So, as a servicer, if you cannot confidently say you are ready for what is next, regardless of what that next is, then it is time to get to work! "It is reasonable to assume that delinquencies may begin to increase later this year, depending on the economic climate. Enhancing self- service tools and simplifying loss mitigation processes helps ensure that homeowners needing assistance have a hassle-free experience and get the support that they need. " —Michael Keaton, SVP, Default Subservicing, PHH Mortgage Corporation