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» given to what satisfies the law firm's confidentiality requirements. Ideally, an industry standard that balances both parties' competing interests should be established. Special consideration should be given by the industry to establishing best practices standards for IT and security. Established standards that all law firms, lenders, and servicers acknowledge as acceptable could eliminate the need for individual audits of these areas by every servicer client. VISIT US ONLINE @ DSNEWS.COM THE INDUSTRY HAS NEVER SEEN ANYTHING LIKE THIS After the Audit Communicate results. Results of the audit should always be provided to the law firm. Like students after an exam, audited firms want to know how well they did. Not only should problem areas be addressed, but it is also helpful to identify what the firms do right and why. Ideally, written findings should be provided and a follow up telephone call scheduled to discuss the findings. To best formulate a remediation plan, the law firm needs to be clear as to what the auditor's findings are and the basis for those findings. Servicers should provide a reasonable amount of time to draft and implement any required remediation plan. Establish follow-up procedures. The firm has most likely spent considerable time and resources on the audit process. That time and effort should not go to waste. The audit can be a benefit to the law firm. Lessons from the audit not only need to be shared, but should also be reviewed in an effort to implement solutions to problems found throughout the audit process. When developing an audit plan, be sure to include meetings with key personnel to review findings and establish firm-wide procedures to solve the issues highlighted in the audit. Although any auditing process is potentially painful, if effectively planned and implemented, this new era of audits can yield a wealth of valuable information for servicers and law firms alike. With a few simple guidelines, this new era of audits can pave the way for achieving the goal of enhanced management of third-party vendors. Robert H. Hosch Jr. and Thomasina Moore are with the law firm of Butler & Hosch, P.A. Hosch joined the firm in 1988 and is senior partner. For the last 23 years, he has focused his attention on the legal issues facing mortgage servicers. Moore is the firm's director of strategic legal initiatives. She has practiced in the default arena for more than a decade, providing representation to originators, servicers, and investors in foreclosure-related cases. CLASS IS NO LONGER IN SESSION. EDUCATION EVOLVED. HILTON ANATOLE, DALLAS, TEXAS SEPTEMBER 5-7, 2012 VISIT FIVESTARCONFERENCE.COM OR CALL OUR CONCIERGE 214.525.6766 REGISTER NOW TO RECEIVE THE BEST AVAILABLE RATE! 57

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