Mastering Mortgage Servicing: Strategies for Superior Quality and Compliance
Mastering
Mortgage Servicing: Strategies for Superior Quality and Compliance
Self-assess and improve your credit union’s quality in your mortgage servicing operations.
Introduction
In today’s competitive financial landscape, achieving excellence in mortgage servicing is essential for credit unions aiming to deliver exceptional value to their members. This comprehensive self-assessment guide is designed to help credit unions enhance the quality of their mortgage servicing operations, leading to improved performance and member satisfaction. With practical tips for both beginner and master levels, the guide offers best practices for defining quality standards, implementing controls, and fostering a culture of continuous improvement. By applying these strategies, you can drive meaningful advancements in your operations, ensuring your credit union is equipped to deliver superior service.
This guide is your roadmap to pursuing excellence in mortgage servicing, offering valuable insights as well as additional resources to support your ongoing journey toward achieving superior quality and compliance.
BEGINNER
MASTER
Enhance quality of mortgage servicing operations
Minimize wasted resources
Reduce process variability
Data
¨ General Population Reports
¨ Specific Population Reports by Mortgage Servicing Function and Loan Type
¨ Call Monitoring, Home Retention / Loss Mitigation, Assumptions 1 2
MORTGAGE SERVICING
4 5
Remediation
¨ Monthly Bulk Exception Delivery
¨ Live-Time Exception Communication
Reporting
¨ Executive Summary
¨ Trending & Root Cause Analysis
6
Turn Times
¨ 90 days
¨ 30-60 days
BEGINNER MASTER
3 Lines of Defense
Implementing the 3 lines of defense model supports separation of duties, reduces conflicts of interest, and is an effective method for preventing and detecting defects, especially fair servicing violations. Centralizing all defense activities in one repository will enhance data-driven decision-making.
Fair servicing tip: Ensure there are 1st and 2nd level reviews of loss mitigation exceptions, rejections, and escalations. Standardize these processes to ensure objectivity and avoid any appearance of bias or discrimination.
A framework for managing risk and control in an organization, consisting of three separate levels of checks and balances.
¨ First Level: Supervisory or Peer Reviews
¨ Second and Third Levels: QC Reviews & Internal Audit
BEGINNER
MASTER
Pursue Excellence
Quality Starts at the Top
¨ Onboarding process for new hires, required annual training
¨ Quarterly meetings to discuss feedback, quality metrics
Recognize, Celebrate, Incentivize
¨ Pizza party
¨ Employee scorecard with qualitative and quantitative metrics tied to performance evaluations and merit increases
BEGINNER MASTER
Embrace Change
Establish Change Management Policies and Procedures
¨ Establish authority and define communication channels
¨ Track implementation and test for effectiveness
Automate Industry Updates and Regulatory / Guideline Changes
• CFPB RESPA and TILA Mortgage Servicing Rules Small Entity Compliance Guide
• Interagency Examination Procedures for Regulation X
• FHA Resource Center
• FHA National Servicing Center (NSC)
• USDA / RD LINC Training Library
• FHFA Mortgage Translations
The Compliance
Newshub
Subscribe now to ensure you are upto-date on the latest headlines and breaking news covering mortgage, credit, and compliance.
ACES Guides
Read white papers, guides, checklists and more authored by our team of quality and compliance experts.
ACES Reports Deliver Nationwide Findings on Loan Quality
ACES Webinars
On-demand webinars provide best practices for navigating current quality control and risk trends.
Success Stories
Georgia’s Own Credit Union
This Credit Union was able to boost productivity by 66%.
Case Studies
myCUmortgage Saves 40 Hours Per Month with ACES Quality Management.
Mountain America Credit Union Deploys ACES Enterprise Wide to Reduce Risk, Improve Quality and Enhance Compliance.
About ACES Quality Management
ACES Quality Management is the leading provider of enterprise quality management software for the financial services industry. The nation’s most prominent lenders, servicers and financial institutions rely on ACES Quality Management & Control Software® to improve audit throughput and quality while controlling costs, including: Unlike other quality management platforms, only ACES delivers Flexible Audit Technology, which gives financial institutions the ability to easily manage and configure ACES to meet their specific business needs without having to rely on IT or other outside resources. Using a customer-centric approach, ACES clients get responsive support and access to our industry experts to maximize their investment.
