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Adapting to Regulatory Changes in Servicing

The combination of a changing business climate and regulations and federal oversight does not mean that servicers can’t enhance their business portfolio, and the Servicing Lab in at the 2016 Five Star Conference and Expo on Tuesday provided servicers with tools to create effective servicing strategies and at the same time comply with the changing regulatory landscape.

Topics at the lab included an update on Fannie Mae Servicing from Malloy Evans, VP, Single-Family Servicing and MHA, Fannie Mae; issues in loss mitigation; a consumer credit trends market update from Joanne Gaskin, Senior Director, Scores and Analytics, FICO; compliance concerns; and a presentation on doing business in D.C. from Tim Rood, Chairman, The Collingwood Group.

The lab director was Michael Waldron, CCO, Bayview Loan Servicing, and the host was Edmond Buckley, President, Aspen Grove Solutions.

“It’s people, it’s processes, it’s technology,” Waldron said of how to handle regulatory changes. “It’s a resource model, and this is a resource-intensive business, whether it’s monetary, or whether it’s head count. We address it by devoting appropriate resources to a good foundation and a sound structure. We address it by being willing to attract and retain talent that’s able to do the analysis, that knows the operations, that can work in conjunction with the business from a compliance and support perspective to add value to the platform.”

On the topic of avoiding regulatory scrutiny, Rood said, “Story matters, and servicers have to understand their audience in Washington. Success is possible, but it takes almost a metaphysical change in their view of patience. They’ve got to work together. The industry itself needs to come together and decide on some compelling storyline that they can all agree to that has their mutual self-interests clearly identified. Get a clear, compelling story, stick with it, make some allies in the industry, and stop thinking that you are or that you can stay off the radar.”

Speakers other than those mentioned above included John Berczuk, Wells Fargo Corporate Trust; Eric Chader, The Collingwood Group; Ryan McGuinness, Freddie Mac; Gregory Lee, Loancare; Donna Clayton, LenderLive; Rachel Rodman, Arnold & Porter; Stephen Faulkner, Opexnow; and Laurie Maggiano, CFPB.

Editor’s note: The Five Star Institute is the parent company of MReport and TheMReport.com.

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.

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