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31 » VISIT US ONLINE @ DSNEWS.COM FIVE MINUTES WITH Get to Know Industry Executives Beyond the Boardroom Jo Ann Kruse serves as President and COO of Matt Martin Real Estate Management, which she joined after spending six years as EVP of The Impac Companies in Irvine, California. An industry veteran, Kruse's career includes time spent as Managing Director of Credit Risk Leadership at Countrywide, SVP of Enterprise-wide Compliance at Wells Fargo Home Mortgage, and director of the Credit Risk Management Practice at KPMG. She draws on her experience to offer her insight on the challenges that face the servicing industry in the current regulatory climate. Your journey has taken you through some of the largest organizations in the industry. Your current firm is consistently ranked as one of the fastest growing in the country. How do you manage such rapid growth in an industry where dependability for your clients is so important? Our research directs a targeted marketing strategy that leads us to clients who will ben- efit from our services. We listen closely to what our customers say they want and need then we develop a customized solution that is appropriate for them. The suc- cess of MMREM can be linked to defined processes, well-trained staff members, and a leadership team of industry professionals with proven track records. Timely and accurate communication among our team and between our team members and the customers is paramount to success. We conduct regularly-scheduled meetings internally that include many levels of the organization and we conduct myriad client meetings that focus on ways to consistently improve results. What are some of the challenges that you see for the servicing industry in this regulatory environment? Maintaining profitability while complying with regulations is highly problematic. Costs associated with hiring the right people, training staff, diminishing employee turnover, documenting processes, properly vetting and surveilling vendors, enhancing systems, examination management, maintaining customer satisfaction and combating fraud are a few topics that come to mind when I think of servicing costs that challenge all of us. In addition to the cost of servicing, there is a significant group of securitized loans that were granted short-term loan modifications. Although increased values will help some of the borrowers who need to refinance, many of them remain underwater and continue to be underemployed. I believe a high re-default rate will occur on these loans. This will lead to either another round of modifications or significant foreclo- sure activity in the not-too-distant future. Servicers who only know how to handle a performing portfolio are going to be in trouble. How would you characterize the housing recovery so far? Government intervention has significantly impacted the housing recovery. Without regard to the impact on investors, certain government actions appeared to be designed to provide candidates with statistics they could use to increase voter support. On the beneficial side, suppressed interest rates positively impacted the mortgage industry. However, I believe that for many borrowers multiple loan mods only delayed the inevitable. As an industry veteran, how do you perceive that the climate has changed for women since the time that you started? When I was in college, I was the only woman in my freshman accounting class. Now I am accompanied by other women in most every managerial meeting I attend. Perhaps it is because my upbringing prohibited me from categorizing a task as either a boys' job or a girls' job – I still do not make that distinction. What's the one thing that you know now that you wish you had known when you began your career? What advice can you give to people looking to get started in the industry? Make sure you learn everything you can about the industry. Gain a deep understanding of the end-to-end process of a loan beginning with sourcing the borrower and culminating with the payoff of the loan. Build a diverse knowledge base applicable to every type of investment, investor, and insurer so that you are equipped to make the best decision at all times. Invest in yourself - both you and your employer will benefit. PRESIDENT AND CHIEF OPERATING OFFICER MATT MARTIN REAL ESTATE MANAGEMENT Jo Ann Kruse