Servicers Turn to DIY Tech to Improve the Customer Experience

Industry Update
November 19, 2015

From single-point-of-contact requirements to the need for better and more user-friendly self-service options, servicers surveyed by National Mortgage News are taking a much-needed hard look at the full range of customer touch-points that they operate.

NMN, in partnership with SourceMedia Research, deployed a survey in September 2015 to a sample drawn from across the mortgage industry. The pool of more than 300 respondents includes C-suite and other senior-level professionals at mortgage origination and servicing firms of all sizes.

Much like their counterparts on the origination side of the mortgage industry, servicers enter 2016 with a relatively upbeat outlook on some basic strategic questions. For example, like originators, most servicers expect their firms to increase staff next year, while one in six expect staff to decrease. Top objectives for the coming year also mirror the originators’ — regulatory and compliance requirements and process improvements were virtually tied as the objectives most frequently cited among servicers’ top priorities.

While servicers’ main concerns heading into 2016 mirror those of lenders, there are critical points of divergence between the two sectors. For one thing, servicers face distinct regulatory requirements, and the risks associated with those requirements do not align precisely with those faced by lenders.

Perhaps more tellingly, servicers diverge from the origination side on some key questions related to infrastructure. In particular, the sector self-identifies as one with very specific pain points when it comes to data and technology, a technology gap with wide customer-service and compliance implications.

The Service Spectrum

Mandates, both regulatory and operational, are driving extensive change in terms of customer service activity across the servicing business. Survey responses show that improving customer service is high on servicers’ to-do list for 2016 — 66% of servicers cited it as a high priority for 2016, and about half said purchasing new technology was a top strategy for this initiative.

The role of technology in improving customer service suggests servicers recognize the need to offer more and better tools for borrowers to manage their loans. These views also reveal increasing demand for products and services that effectively integrate with existing systems.

One area where the industry has made fairly substantial advances is in making certain self-service functions readily available to borrowers. These tend to be specifically in the area of payments: Two-thirds of servicer respondents said their firms offer technology for borrowers to make one-time mortgage payments online, and 74% let customers schedule automatically recurring mortgage payments online.

However, use of technology that enables borrowers to engage in more complex customer interactions is lagging. For example, adoption of Web-based and self-service tools that can assist distressed borrowers with loss mitigation processes significantly trails that of online payments.

Only 25% of servicers said they provide distressed borrowers with tools to fill out, process and check the status of loss mitigation applications, while just 13.2% of servicers use online chat technology on their websites. The most widely used self-service technology not directly involving payments was interactive voice response, and even here less than half of servicers providing an IVR option to borrowers.

Given the relatively recent implementation of SPOC requirements, monitoring and managing this element of the servicing business would seem one particularly well suited for a technology solution. And in fact most do — nearly seven in 10 companies use CRM technology to help in their group SPOC efforts. (Most servicers said their firms employ either a group SPOC, also known as “continuity of contact,” approach, or a combination of group SPOC and one-on-one activities.)

Other technologies, including IVR, online chat and mobile phone text messaging, are far less prevalent among servicers’ SPOC operations. Some 20% of servicers said their firms use no technology to manage SPOC requirements.

Source: National Mortgage News

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties