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» VISIT US ONLINE @ DSNEWS.COM 55 e Consumer Financial Protection Bureau (CFPB), Fannie Mae, Freddie Mac, other regulatory bodies, and government agencies all place strong emphasis on servicers providing homeowners with robust customer service that is consistent, responsive, proactive, and recurrent. e initial creation of positive homeowner perceptions and opinions about servicers helps create a high level of trust and comfort that can only strengthen collaboration with homeowners relating to debt collection and loss mitigation practices that may occur at a later point in time. Delivering a superior customer service experience is a critical challenge mortgage servicers face. And, delivery of superior customer service can be a major differentiating factor among residential mortgage loan servicers in today's marketplace. e tenets of strong and effective customer service organizations are comprised of the following five principles: Transparency: Homeowners want to know "who to call" and "where to get answers" regarding questions they may have or points of clarification they may seek relating to their mortgage loan debt. As perhaps the single largest financial obligation homeowners may have in their lifetimes, mortgage debt is a major priority that warrants a transparent and easy-to-understand roadmap of available service assistance options. Ease of Access: Extended weekday hours, weekend/selected holiday hours, and dedicated language lines are critical customer service priorities for homeowners have of their mortgage servicer. In addition, homeowners place heavy emphasis on the immediacy associated with human versus automated interactions, and the simplicity associated with getting to and speaking with a "live person." Responsiveness: e ability of servicers to respond quickly is critically important to homeowners; servicers are expected to respond rapidly to inquiries and questions that require further research. If further information is needed in order to respond to a question or if the information is currently unknown or is not readily available, homeowners should be promptly apprised by the servicer that the issue is currently being investigated, be given a target response date, and be provided with status updates on a consistent basis until the question has been addressed. Servicers should honor commitments made to homeowners and respond to them when promised, even if the response entails a simple, "I'm still working on resolving the issue, require additional time, and will get back to you by 'xxx' date." Problem Resolution: Homeowners want to know they can speak with someone knowledgeable, capable of answering questions, and adept at resolving issues that may arise. To facilitate this, servicers may utilize interactive customer service portals, which immediately provide onscreen details regarding specific homeowner and loan-level information at the time a call is received. Consistency: For homeowners working with servicers to resolve a specific issue or for those homeowners who may be having difficulty paying their debt, who may be in default, or who are pursuing various loss mitigation alternatives, having a single point of contact (SPOC) at the servicer is critical and very common. ere is anecdotal evidence from servicers across the industry that SPOC yields higher levels of success in reducing loan modification recidivism rates and holding homeowners to forbearance plans and other loss mitigation plans. In fact, the U.S. Department of Treasury mandates a SPOC for each homeowner who qualifies for and participates in the Home Affordable Modification Program (HAMP). From time to time, homeowners may directly contact loan originators and prior servicers with inquiries about current servicing practices. is can be due to the homeowner's lack of awareness that a servicing transfer has occurred and/or due to the homeowner's comfort level in dealing with the loan originator throughout the loan lifecycle. In either case, homeowner calls relating to loan servicing received directly by a party other than the current servicer should be brought to the existing servicer's immediate attention. is is critical to minimize or eliminate unnecessary response time lags, avoid risks associated with non-adherence to licensing and regulatory guidelines, minimize/eliminate homeowner confusion, and assist in changing homeowner behaviors. Institutions other than the named servicing receiving servicing related calls from a homeowner should warm transfer the calls and conference-in the appropriate individuals(s) at the current loan servicer. is immediate and direct involvement and notification of the current servicer provides necessary information so root cause analysis can be performed in order to assist in the identification of process impediments, define applicable process improvements, and aid in the prompt resolution of any specific process failures. CALL CENTER OPERATIONS Loan servicers generally have established call center operations to handle both inbound and outbound calling activities. Inbound calling provides homeowners with an opportunity to reach out to mortgage servicers and ask questions/request assistance on a variety of issues concerning their loan, make general inquiries relating to routine and administrative matters (such as where to send payments, amounts due, taxes, insurance and other escrow-related questions, requests made for forms, etc.). Homeowners will also make inbound calls to lodge complaints and initiate specific disputes. Questions or issues that go beyond general administrative matters and relate specifically to the actual debt (i.e., acceptance of partial payments, application of payments, loss mitigation options, foreclosure timelines and processes, etc.) are normally assigned to a servicing professional who serves as the SPOC for the homeowner. e intentions of a SPOC are good: to lessen homeowner confusion, prevent or reduce foreclosures, foster consistency, and improve high-quality customer service; however, execution places a significant strain on loan servicers and their call center staff. Outbound calling generally relates to debt collection, foreclosure, and loss mitigation activities. In addition, servicers will return inbound calls to homeowners for a variety of other reasons including, but not limited to: (i) responding to messages left, (ii) requesting clarification or additional information in response to correspondence received for prior inquiries made, and (iii) informing homeowners of completed research relating to a dispute or qualified written request received and applicable resolution of a specific issue. Regulatory bodies, including the CFBP, work to equip consumers with the knowledge, tools, and capabilities they need in order to make COVE R STORY INDUSTRY INSIGHT POINT- COUNTERPOINT M ARKET PUL SE