A recent case study was done by a law firm in which they used technology to comply with the Service Members Civil Relief Act.  Following are the processes they have automated with the assistance of services provided by NetDirector.  In addition, their next step is to upload the supporting documentation via automation to the client system as well.

1. Upload Social Security information to the Department of Defense web portal
2. Perform the search and obtain verification
3. Obtain results, including official affidavit in PDF format
4. Index results and accompanying documents to the case file
5. Evaluate results
6. Create workflow tasks for the exceptions or “red flag” results
7. Place file on hold if necessary
8. Notify client if borrower is on active military

Following are the benefits they realized through this automation:

“Whereas steps 1‐8 used to require at least two FTE’s prior to code implementation, the process is handled behind the scenes and only creates a task in the work flow process if the proverbial “red flag” (confirmation of active duty) is waved. A tremendous amount of manual labor and double key input is thus reduced at an efficiency level approaching greater than 95%. The use of technology reduces labor costs and further condenses the time frame to process a defaulted loan.”

This is an exceptional example of how firms can use innovative technology to their advantage to comply with internal, legal and client requirements.  Automating the military search process can not only ease the burden of having to adhere to new rules and regulations but imparts proven efficiency and cost savings as well.

Melissa McCabe
Integration Analyst
NetDirector
(813) 527-0368

Tags:  automation, foreclosure, Civil Relief Act

Top APR Improvement tips:

1. Referred to Received. This is calculated from the minute the servicer fills out the File Referred to Attorney event of LPS and stops when the File Received by Attorney event is filled out.  It is calculated from 8am – 5pm CST Monday – Friday excluding the 10 Federal holidays.  The faster you can send back the event the lower this time will be and the better your APR score will be.  However, this event only counts for approximately 2% of your overall APR score so in the big picture it is relatively unimportant.   Any automation that can be done based of the file referred action can not only improve your APR score, but also allow your firms labor to focus on other manual processes required to complete larger weighted portions.
2. Referred to First Action. Usually one of the largest weighted portions of the APR score, this step is counted in days.  It should be noted that those files referred after 3pm CST are not counted until the following business day.  Any manual processes that can be accomplished through automation should be implemented.  One quick way to automate this event would be to base the milestone event off of the process server update.  Most importantly would be to have a flow chart of how a referral is to be handled given any situation, then highlight those areas that can be automated.
3. Holds/Stops. These items can be sent to you in the same format as the referral.  What differentiates them is they always have a unique Case ID (RID) without a parent RID.  Again, any automation that can be done from when the client refers the Stop or Hold to send back the milestone will save the firm labor that can be devoted to either the First Action or Sale Held.
4. Devote labor hours in the right places. Many times firms will devote numerous labor hours to monitoring LPS’s for certain events.    Once these events take place there are duplicate entries in both LPS and the firms Case Management System (CMS), or in rare cases firms are only updating LPS and not maintaining their own record of completion. By automating those tasks which can be triggered by the completion of another event (i.e. Holds/Stops, Referred to Received, Complaint Filed, Service Complete), this will enable firms to devote labor to tasks that are going to be manual.

Milestone event automation benefits all default servicing parties involved by: reducing labor, control costs, improving data purity, and trimming timelines.  For the default attorneys and trustees – event automation will boost your competitive advantage by improving servicer scorecard rankings and overall profit margins.

Darren Meiggs
Integration Analyst
NetDirector
(813) 345-4634

To update these events – attorneys are required to log into to various mortgage servicer (“servicer”) web sites (i.e.: LPS Desktop, VendorScape, etc.) access the correct file number and enter the event and completion date.  Major Servicer platforms that support event update integration are: LPS Desktop, VendorScape, LenStar, Clarifire, and BAC BPI.  These systems support data interfaces so that the events can be completed with automation.

This list is in no way complete. I invite you to add your favorite tips in the comment section.

Top 5 Milestone event automation tips:

1. Implement incrementally. Start with easy events such as file received & first legal action then move to more complex events such as sales results.  Implement one or two events at a time so that you can assimilate into your business process.
2. Manage Exceptions. Once live with automation – you will now need to track events that do not complete for some reason such as:  event already completed, case ID does not exist, file closed.  By proactively analyzing exceptions – you can track trends while implementing process improvements.
3. Run your sync reports. Most servicer systems offer synchronization reports to match up unique client system IDs to ensure proper updates to active files.
4. Communicate with staff members. Include key business unit staff in the loop during implementation and ongoing efforts to ensure buy-in and maximize process automation.
5. Follow 80/20 rule. Do not go into this thinking 100% automation up front.  You will get the best results when you don’t sweat the small stuff.  By automating 80% of your events – you will maximize return on investment and position your firm to handle more files and improve accuracy.   The 20% consisting of exceptions can be managed with other automated processes.

Milestone event automation benefits all default servicing parties involved by: reducing labor, control costs, improving data purity, and trimming timelines.  For the attorneys and trustees – event automation will boost your competitive advantage by improving servicer scorecard rankings and overall profit margins.

Harry Beisswenger
Chief Operating Officer
NetDirector
(813) 774-4797
harry@netdirector.biz
www.linkedin.com/in/harrybeisswenger

As the mortgage banking industry embraces electronic data exchange – major process servers such as ProVest and Firefly Legal have enabled their proprietary case management systems to transmit data and documents with their trading partners (i.e.: attorneys).  There are also SOP software providers such as: Database Services/Process Server Toolbox and LoyalDog Software that are interface enabled.

The following are some of the data and document transaction feeds that are available for automation:

• File Upload – Attorney to Process Server
• Defendant Upload – Attorney to Process Server
• SOP Update – Process Server to Trustee
• Sale Attendance – Attorney to Process Server
• Tenant Inspection – Attorney to Process Server
• Documents – Bi-Directional (i.e.: Affidavit, Date Stamp Complaint, Service Return)
• Invoice – Process Server to Attorney

Foreclosure file level and defendant level information is sent to the process server to create a file on their system.  Once the process server makes contact with the defendant – they will send file and defendant level updates to the attorney case management system. Typical updates include notes, tracking event information for complaint filed and service complete.

Streamlining SOP and other field service related functions benefit all parties involved by: reducing labor, controlling costs, improving data purity, trimming timelines, and improving servicer performance.  If your company is involved in this process chain – implementing an electronic data exchange strategy could prove invaluable to your business…

Harry Beisswenger
Chief Operating Officer
NetDirector
(813) 777-4797

There is a much better way to handle document download/uploads by utilizing a document interface.  Some of the major servicer platforms offer web services to poll for documents both at time of referral and add-ons.  The attorney firm/trustee’s can enable their case/document systems to auto index/attach these electronic documents directly to the appropriate files.  These same web services offer the ability to upload documents directly to the servicer platforms.

By automating this resource intensive/error prone process – firms can save thousands of man hours, reduce document mishaps/exception handling, and increase their capacity to handle more files.  Document automation leads to increased profit margins and greater business viability…

Harry Beisswenger
Chief Operating Officer
NetDirector
harry@netdirector.biz