The risk management company RiskSpan and the law firm Lyons McCloskey have formed a strategic alliance to deliver innovative solutions to the default servicing industry.
The alliance will leverage the two companies’ respective strengths, such as Lyons McCloskey’s consulting and training to third-party management oversight for government-insured loans and conventional loan portfolios, as well as RiskSpan’s ability to identify, assess and manage significant risks for its clients’ business objectives.
Bob Lyons, managing partner of Lyons McCloskey, Fairfax Station, Va., said his firm has developed a comprehensive audit program that measures whether a foreclosure attorneys firm is in compliance with the law. He added that the alliance utilizes RiskSpan’s expertise in enterprise risk management, allowing the audit to provide their clients with a self-assessment report and scorecard tools to mitigate risk.
In April, an interagency review conducted by the Office of the Comptroller of the Currency, Federal Reserve System and Office of Thrift Supervision found that the monitoring of third-party vendors, specifically foreclosure attorneys, was a critical weakness.
“Our firms share a common view on the importance of providing innovative strategies and solutions to the mortgage banking industry,” Lyons said.
Both sides have decided to join forces to help mortgage businesses reduce risk, streamline operations, minimize costs and maximize financial returns.
“While the breadth and depth of default management experience within each firm is impressive, the alliance supports creation of new strategies and provides scalability to meet the growing needs of mortgage servicers and subservicers,” said Bernadette Kogler, president of Stamford, Conn.-based RiskSpan.