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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 46 October 2023 F E A T U R E S T O R Y all the right tools and resources in place, the agility to scale up or down according to clients' needs, and a long-term vision and strategy to continuously advance. Servicing technology should be a top consideration when choosing a subservicing partner. Modern servicing platforms are robust, integrated, scalable, and equipped with smart tools like AI (Artificial Intelligence), workflow auto- mation, and cross-platform analytics that aid compliance and enhance customer experience. For example, our servicing platform helps us ensure timely termina- tion of mortgage insurance, accurate and timely escrow analyses, and adherence to all other state and federal regulations that apply to a servicing portfolio. AI allows us to listen and analyze customer interac- tions across multiple channels, so we can quickly detect and address potential risks. The use of advanced data analytics to aggregate customer satisfaction metrics in actionable ways is another way servicers can continuously improve the experience offered to customers and clients. Having a comprehensive platform that integrates servicing activities from end to end max- imizes efficiency and excellence across operations while closing compliance gaps and minimizing risk. Where Culture Meets Compliance A t the end of the day, most lenders want to retain and expand customer relationships. The best way to earn loyal- ty is by being a true partner and empow- ering customers and clients to achieve their goals. Organizational culture plays a huge role. Anyone can be trained to follow a procedure and check compliance boxes, but training people to genuinely care isn't so simple. At my firm, recruiting team members who believe in our mission to make a positive difference for others is a main focal point. After all, your people are the foundation of the kind of service you are able to provide to your customers. Regulations and guidelines are designed to protect borrowers' interests, and when a servicing organization exists to do the same, meeting and exceeding compliance requirements can become much easier. For example, one area I see culture play an integral role is issue and com- plaint resolution. Of course, following the correct procedures is critically important, but there are a lot of nuances that can promote a positive outcome. The value of talking with a customer, listening ac- tively, understanding their concerns, and keeping them informed throughout the resolution process cannot be overstated. Truly caring and demonstrating account- ability goes a long way in earning trust and strengthening relationships. In short, when servicers approach these types of is- sues as opportunities to serve others and improve the overall customer experience, everyone wins. Three Lines of Defense R egulatory oversight is a fact of life for mortgage servicers, and staying compliant requires robust risk manage- ment framework. In addition to providing a superior customer experience, servicing organizations should employ three lines of defense to mitigate risk: operations and business controls, risk oversight and management, and internal auditing. On the front line, operations and business controls teams need to take ownership of risks that exist across servicing activities by designing policies and procedures, training programs, and effective quality control (QC) practices. People and technology work in concert. For example, our customer care telepho- ny system enables continuous call lis- tening and sentiment analysis to identify trends in our customer experience and potential compliance issues, while first- line teams conduct at least 17 evaluations per agent each month. These evaluations focus on compliance, soft skills, and issue resolution, while offering immediate and actionable feedback to our agents. Proficient change management is also crucial. Staying on top of regulations and guidance requires a broad network and multiple industry sources, as well as robust change management practices to ensure effective implementation. This should include careful testing, monitor- ing, and reporting to an organization's compliance and leadership. To effectively manage risk, subser- vicers should have well-defined risk assessment methodology in place, over- see its execution, aggregate the results to monitor adherence, and identify areas of emerging risk. Then, objective and independent internal audits are used to ensure first- and second-line processes are designed and operate effectively. Again, technology streamlines these ac- tivities from end to end, enabling timely issue detection down to the loan level and efficient research, remediation, and reporting across a portfolio. For example, organizations can implement a rules engine that monitors data across entire portfolios and be alert to potential issues in near real-time. Cross-platform analytics also support timely reporting to an organization's audit committee and board, as keeping an orga- nization's leadership informed empowers intelligent decision-making and portfolio management. Overall, this three-pronged approach to risk management will help a servicing portfolio stand up to the scruti- ny of regulators and agencies. While lending organizations face a multitude of challenges in today's regulatory environment, a subservicing partner—especially one with the right technologies, culture, and risk mitigation strategy—can offer numerous advantages beyond mere compliance. Big picture, it's about strengthening loyalty to your brand, cultivating high-performing ser- vicing portfolios and growing sustainably.