Large servicers are now embracing the notion of using special servicers to leverage their internal capacity, and finding that doing so creates an opportunity to involve all the necessary parties in the process through a single, integrated approach.
Take, for example, the Single Point of Contact (SPOC) strategy. Larger servicers realize that special servicers can reach out to borrowers and provide a high-touch, personalized connection that is otherwise very difficult to achieve. Even where the servicer manages the single point of contact through their own personnel, the special servicers support teams ensure the SPOC is always prepared with complete, accurate, decisionable information. Under either approach, borrowers are a great deal more than just a name. Special servicer based loan resolution solutions make those borrowers feel like a priority, and the results show it.
Short sales are another example of how a special servicer can bring together all participants—real estate agents, servicers, lenders and investors–onto one web platform, and keep everyone involved in the process. Advanced technology can parlay information with accurate, consistent and real-time data that eliminates mistakes, accelerates decision-making, and provides a transparent view of the short sale process. With this transparency and participation process, short sales can be completed in a third less time than they more typically require.
Primary servicers are also using special servicing solutions for borrower outreach and complaint escalation, among others. The special servicer has the processes and methods in place to deal with the most extreme cases, supplementing the main servicer skill sets so that all aspects of the servicing area are covered. Using an advanced technology approach that allows for ready collaboration and the seamless transfer of responsibilities, special servicing readily partners with large servicers to get the job done.
In addition to the specific borrower-facing tasks, special servicers are also offering compliance reviews, portfolio evaluations and Consent Order audit-satisfying services to round out the picture. Large servicers no longer have to go it alone – there are specialists on board that are well equipped and ready to provide scalability with remarkable speed.
Steven Horne is CEO of Wingspan Portfolio Advisors.