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20 CHOOSING A TECH-SAVVY INSURANCE VENDOR As third-party vendors continue to be an extension of the servicer, it's imperative that a servicer selects a lender-placed insurance vendor that operates as a partner. ere are various elements that should be considered when evaluating a lender- placed insurance partner, one of which is technology. Vendors that can effectively leverage technology can efficiently meet the changing needs and evolving regulations of the mortgage servicing industry. A vendor's commitment to technology can ensure that servicers remain in compliance. Servicers should ask the following questions to evaluate a lender-placed insurance vendor's commitment to investing in technology that supports the vendor's infrastructure, IT security, and tracking system. CAN THE VENDOR DEMONSTRATE ROBUST INFRASTRUCTURE TECHNOLOGY TO GUARANTEE SYSTEM UPTIME? Servicers need to assess a vendor's investment in infrastructure technology that supports uptime of systems, networks, data centers, and facilities. Two primary objectives are to protect data and to continue operations without interruption of service. One of a vendor's primary lines of defense is a firewall that protects against DDoS attacks, malware, viruses, web filtering, and access lists to limit connectivity. In addition, firewall management includes consistent and timely application upgrades and updates to threat and antivirus signatures. Redundancies should be built into technology to prevent business disruption. is includes redundancies in power, servers, firewalls, data storage, and internet service providers. A vendor should invest in an Uninterruptable Power Supply (UPS) with a generator that maintains the building, data center, and system uptime without skipping a beat. A strong disaster recovery program is essential. A vendor touches and updates valuable servicer data daily that in turn should be continually replicated throughout the day to a disaster recovery site. Seek a vendor who institutes a business continuity and disaster recovery plan that is tested annually and verified by an independent third-party auditor. SPONSORED STORY "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."