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» VISIT US ONLINE @ DSNEWS.COM 21 CAN A VENDOR PROVE ITS FINANCIAL COMMITMENT TO SECURITY MEASURES? Financial investment is required to build an IT security and governance team that protects information and systems from unauthorized access, use, disclosure, disruption, modification, or destruction in order to preserve confidentiality, integrity, and availability of information systems to servicers. Look for a vendor who demonstrates competency in cybersecurity at the state and federal levels. Competency can be measured by assessing the vendor's cybersecurity policies and programs, which should include the following elements: » Cybersecurity risk assessment » Dedicated cyber risk governance and management team » Incident response plan » Cyber resilience » Frequent penetration testing and vulnerability assessments contracted by a qualified independent firm » Strong independent audits of the organization's security » Ongoing cybersecurity training for its teammates Seek a partnership in which the vendor understands the importance of managing the potential risk that exists when confidential data is entrusted with a third party. A vendor should approach the partnership with cooperation and a sense of urgency to comply with a servicer's vendor-management requests. DOES THE TRACKING SYSTEM DEMONSTRATE INVESTMENT IN TECHNOLOGY THAT PREVENTS BORROWER HARM? A servicer doesn't need an insurance monitor. A servicer needs a vendor whose system is capable of identifying insurance exposures and intelligently correcting them with compliant lender-placed insurance practices. ere are several questions a servicer can ask to identify how technology is leveraged to prevent noncompliance and borrower harm. Does the system include automated warnings, process stops, and control reporting to ensure accuracy and compliant results? Systems that maintain data integrity and identify illogical data conditions should be incorporated into the technology solution. Even when electronic data interface (EDI) is fully leveraged for insurance invoice processing, human involvement is part of the process. Flags, stops, and integrated controls that help prevent duplicate or incorrect insurance disbursements offer optics and preventative measures against borrower impact. Robust and timely control reporting is the key to demonstrating that systems and processes are delivering expected results. Controls around timely insurance mail processing and lender-placed insurance refunds are critical to a compliant solution. Servicers should seek partners with systems that can provide intelligent workflow management. Borrower harm is reduced when system rules are set to prioritize inbound insurance documents associated with borrowers currently in the lender-placed letter cycle or who have already been lender placed. Tools designed to prevent lender placement are also important to consider. An intuitive policy procurement system that allows the vendor to optimally manage communication to agents, carriers, and borrowers in order to obtain current insurance policy information should be an integral part of outsourced insurance solutions. Preventing unnecessary lender placement is one part of the equation. However, when necessary, lender placement must occur. Lender-placed activities are highly regulated by federal and state laws and regulations. Fannie Mae, Freddie Mac, and other investors also have servicing guidelines that require adherence. e vendor's technology should include tight controls related to notices, placement, cancellation, and refunds of lender-placed insurance, including the ability to evaluate adequate coverage and respond appropriately to changes in flood zones in order to keep the servicer in compliance. How is technology leveraged to minimize and manage consumer complaints? A consumer complaint tracking system that can produce reporting to the servicer is a minimum requirement that must be met. Servicers should expect their vendor to leverage additional tools designed to provide real-time speech analytics during borrower phone calls that can alert management to potentially escalating situations as they are developing. Post-call surveys are another tool for a servicer to utilize for ongoing evaluation of the borrower experience. What technology solution does the vendor offer for monitoring repairs to a borrower's property after an insurance claim is paid? Efficient workflow and task-tracking systems that keep funds flowing while maintaining required controls will dramatically improve the borrower's experience throughout the claim process. Seek a vendor that developed a module to manage and monitor claims for preferred policies. How does the vendor control change management? A healthy balance needs to exist between nimbleness and tight controls established to manage the change process when new industry regulations need to be implemented. A vendor's technology team should use system development life cycle (SDLC) tenets, processes, and standards which maintain a common code base and facilitate faster installation of common changes across clients. Seek a vendor with a proven record of implementing change requests quickly and smoothly. Responsiveness to the evolving mortgage servicing industry keeps a servicer in compliance and mitigates borrower harm. Is the tracking system designed to allow complete transparency? With a click, a servicer should be able to perform independent vendor management to ensure their lender-placed partner is performing. Every borrower touchpoint should be memorialized and accessible at any time–including insurance documents received, recorded borrower phone calls, notifications sent, transaction history, and claims documents such as adjustors' reports. is transparency and access is especially vital when a servicer is audited. If housing all documents and notices on your own imaging platform is important, seek a vendor who can provide an export of documents in an indexed and usable format. In conclusion, select a lender-placed insurance vendor who has proven its financial investment and commitment to technology, infrastructure, IT security, and an intelligent tracking system. A vendor that invests in technology is a partner who invests in its client relationships. Mohamed Elewa's career at Proctor Financial began in 2001, when he served in the capacities of CFO and COO. Today, he serves in the role of EVP. rough his leadership, Elewa has championed for the investment of millions of dollars in state-of-the-art technology advancements to improve operational efficiencies and develop workflow solutions. Under his direction, Proctor Financial created proprietary technologies, such as the IIM (Intelligent Insurance Manager) tracking system and Proctor's Loss Draft Module. Elewa is committed to ensuring that Proctor continues to invest in technology, infrastructure, IT security, and tracking systems that strengthen client partnerships and improve the borrower experience. SPONSORED STORY