CMBA 19th Annual Western States Loan Servicing Conference
On August 3-5, Safeguard participated in the CMBA 19th Annual Western States Loan Servicing Conference, discussing Property Preservation: Managing Vendors, Maintaining Compliance & Embracing New Technologies.
Safeguard was honored to present timely and relevant industry content at this year’s CMBA conference. Kathy Cogan, AVP of account management moderated a session discussing property preservation. A summary of this session can be found below.
CMBA 19TH Annual Western States Loan Servicing Conference
Las Vegas, NV
August 3– 5, 2014
Property Preservation: Managing Vendors, Maintaining Compliance & Embracing New Technologies
Moderator:
Kathy Cogan, Safeguard Properties
Panelists:
Brian Daily, First Allegiance
Sherilee Massier, MSI
Ian Rambarran, Klinedinst PC
Janet Smith, PNC
Overview:
This property preservation focused session discussed managing vendors, embracing new technology, and maintaining compliance.
Managing Vendors
Janet Smith began by describing the increase in scrutiny over vendor management at PNC. This has led to an increase in audits and focus on documentation. Compliance with local ordinances and protection of reputational risk were also offered as concerns to be addressed with vendors who perform work for servicers.
Brian Daily shared the philosophy of “communicate, document, validate” as a best practice for field service providers looking to remain in good standing with servicers. Going above and beyond minimum requirements is necessary to stay ahead of the competition.
There has been a trend in the industry toward providing servicers with an increased level of transparency to the inner workings of vendor shops. Servicers have been more open to this level of involvement and it brings a common understanding that encourages productive relationships.
Better performance has also been demanded from vendors in the field as requirements cascade down the chain to subcontractors. Sherilee Massier spoke to the higher quality of work being performed in the field, noting that “doing the right thing is really having a bid impact” on communities.
Embracing New Technologies
Technology continues to play a critical role in day to day operations within the industry but has also been turning corners to afford advances in service speed and quality controls.
Daily and Massier described the role technology plays in enabling them to quickly and effectively assign work to their network of subcontractors. Massier noted that through mobile technology, field service providers are positioned to identify those who are performing work at their properties and ensure these individuals have a current background check on file.
Kathy Cogan outlined the significant timeline reductions Safeguard has been able to achieve with the introduction of a mobile application to inspectors in the field. Advances such as mobile technology enable investors and servicers to see work results and bid submissions days earlier than in the past. Providers can also use mobile technology to capture location and date/time detail in association with information reported and submitted.
Smith touched on some of the challenges servicers face in capitalizing on technological advances. Many servicers utilize dated systems to manage their inventory and their processes. They often rely on vendors to take advantage of process improvements such as integration with investor bid systems.
Maintaining Compliance
Compliance has become such a common word but is really applied to many different facets of the industry – laws and ordinances at all levels, governmental agency directives, investor and servicer driven scrutiny, etc.
Ian Rambarran stated the goal of all industry parties is to insulate themselves from liability. In keeping with the prior topic, it was noted that advances in technology can sometimes add more potential for liability since the recipients have more data and information available to them and must act on it accordingly.
When asked whether field service providers fall under the jurisdiction of the CFPB, Rambarran indicated they may not technically fall under the requirements but noted that providers may choose to adopt processes as if they were governed directly in order to maximize their protection. Daily pointed out that the obligations may differ based on the type of provider and the level of information to which they have access.
Given the evolution within the industry, panelists shared best practices for managing change within their organizations. These included sign-off requirements for procedural updates to staff and subsequent follow up to ensure adherence to procedures, communication down the chain to vendors and sub-vendors, and providing context to explain the drivers of changes.
Focus for the Future
In closing, panelists were asked about their focus for the future. Collectively, the group is focused on customer service, change management, transparent communication, scorecards and building a voice for the industry.
The CMBA 19th Annual Western States Loan Servicing Conference was held in Las Vegas, NV.
