Servion Mortgage Newsletter - May 2023

PARTNER UPDATES

We exist to provide you with the tools to reach your true potential. Each member of the Servion team comes to work with a Be The Solution mindset and views our relationship with you not as a customer or client relationship, but as a partnership.

We are always excited to celebrate new partnerships as well as current partners who are adding different mortgage channels to help them serve their borrowers best.

New Partners

Meridian Trust Federal Credit Union – Cheyenne, WY

Connections Credit Union – Pocatello, ID

Hawthorn Bank – Jefferson City, MO

Pacific NW Federal Credit Union – Portland, OR

Uniwyo Federal Credit Union – Casper, WY

Relationship Expansions

TruChoice Federal Credit Union

* Added Wholesale FHA & VA

Fort Community Credit Union

* Added Wholesale VA

Billings Federal Credit Union

* Added USDA – Sponsored Agent

Lakeside Bank

* Added Wholesale - Conventional

MONTHLY WEBINARS AVAILABLE TO SERVION MORTGAGE PARTNERS

Servion Mortgage offers monthly webinars to help you gain deeper product and program knowledge to be the best resource for your borrowers. The latest webinars covered FHA and VA product guidelines and updates. These programs have specific guidelines, yet there can be varying interpretations of those guidelines based on the lender’s perspective. In the FHA and VA webinars, Rachel Mengelkoch, Servion’s Training and Product Development Manager, answered questions, like:

• What do we need to know when a borrower’s end date of services is within 12 months of the loan closing?

• How do we handle a spouse’s trailing income or if a spouse is delayed when moving or occupying the home?

• How does a VA loan differ from a conventional loan?

• What is a Notice of Value?

• How do I decide between program options for my borrower?

• How do we do the loan limit calculations for government loans?

So many questions and so many answers. Rachel offers insight into the guidelines and shares updates. To watch the recording, simply click here.

THE IMPORTANCE OF QUALITY CONTROL FOR MORTGAGE SERVICING

What is mortgage servicing and how can it benefit lenders?

BY BROCK MILLER QUALITY CONTROL MANAGER THE SERVION GROUP

The mortgage servicing industry plays a crucial role in the overall functioning of the housing finance system. Mortgage servicers are responsible for collecting and processing payments, managing escrow accounts, working with delinquent borrowers on loss mitigation strategies, maintaining accurate records for millions of borrowers across the country, and much more. In order to ensure that mortgage servicers are operating efficiently, effectively, and compliantly in all their procedures, quality control processes must be implemented and maintained.

Here are some questions related to mortgage servicing that we commonly receive from our partners:

Mortgage servicing is the process of collecting mortgage payments from borrowers and managing the various components and stages of the mortgage servicing lifecycle, such as escrow administration, delinquency, loss mitigation, bankruptcy, foreclosure, etc. Mortgage servicing is a complex and highly regulated industry. There are several federal and state laws and regulations that govern the operations of mortgage servicers, including the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), and the Fair Debt Collection Practices Act (FDCPA). In addition, GSEs and agencies have their own mortgage servicing guidelines as well (FNMA, HUD, VA, etc.). Compliance with these guidelines and regulations is critical for mortgage servicers, as failure to comply can result in significant financial penalties and repercussions as well as damage to the company’s reputation.

Why is quality control important for mortgage servicing?

An effective quality control program is essential for ensuring that mortgage servicers are operating in compliance with all relevant guidelines, laws, and regulations, and that they are providing high-quality service to borrowers. Loan servicing reviews are a key component of a sound QC plan and program and an important tool for identifying potential issues with mortgage servicing operations. These reviews can be conducted by internal staff and/or by third-party vendors and help to ensure a mortgage servicer’s procedures and activities are compliant. A strong quality control program is actively monitored and reported upon to ensure that compliance is maintained, quality standards are met, and corrective action is implemented and functioning as expected.

What are some best practices for quality control in mortgage servicing?

In order to implement and maintain an effective quality control program in the mortgage servicing industry, there are several best practices that organizations should follow. These include:

ESTABLISHING A CULTURE OF QUALITY: This involves establishing policies and procedures that prioritize quality and ensuring that all staff are aware of the importance of quality in the organization. A commitment to quality begins at the top of an organization and is part of its overall mission, vision, and values.

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INVESTING IN TECHNOLOGY: Investing in technology can help mortgage servicers to streamline operations and reduce the risk of errors or compliance issues. In addition, servicing reviews are commonly conducted within the servicing system itself. Having a robust and accessible servicing system will ensure your QC servicing reviews are thorough and accurate. 5

CONDUCTING REGULAR LOAN SERVICING REVIEWS: These reviews and audits should be conducted on a regular basis (generally monthly as well as quarterly) to ensure that mortgage servicing operations are functioning effectively and efficiently. If deficiencies are identified, assess and implement corrective action and re-test to ensure effectiveness.

REGULAR TRAINING AND EDUCATION: Providing regular training and education to servicing staff is critical for ensuring that they are aware of all relevant guidelines, laws, and regulations, and for keeping them up-to-date on changes in the industry.

MAINTAINING STRONG INTERNAL CONTROLS: Strong internal controls are essential for ensuring that mortgage servicing operations are functioning effectively and that compliance is maintained. This includes regular monitoring of key processes and procedures through 1st/2nd/3rd level checks, and ongoing reporting to senior management and the board of directors.

Quality control is crucial for the mortgage servicing industry to function effectively and efficiently. An effective quality control program can help to identify potential issues with mortgage servicing operations and ensure that compliance with relevant guidelines, laws, and regulations is maintained. By following best practices and conducting and monitoring regular loan servicing QC reviews, mortgage servicers can minimize risk, improve operations, and ensure they’re providing high-quality service to borrowers. If you have additional questions about QC, contact Brock Miller, Servion’s Quality Control Manager at bmiller@myservion.com.

QUALITY CONTROL. Simplified.

Manage your repurchase and compliance risk with confidence. We have worked with financial institutions to deliver mortgages for over 30 years. Now we are sharing our compliance expertise with you.

The Question:

How do you manage the regulations and guidelines that come with mortgage lending and servicing?

The Answer:

By taking advantage of Servion’s Quality Control Services.

Review Types Offered:

f Servicing

f Post-Closing

f Pre-Funding

f Non-Originated

f Early Payment Default

f Targeted

f Appraisal

We understand your need to focus on quality, not quantity, while still having a quick turnaround time. You can count on that kind of personalized and detailed service with us. Visit myservion.com/qualitycontrol or contact our dedicated QC Manager, Brock Miller, at bmiller@myservion.com.

CARE CARE

Servion

For borrowers, managing a mortgage can often feel like a daunting task. There are payments to make, documents to keep track of, and various other financial obligations to meet. Fortunately, Servion Mortgage’s servicing department is converting to third-party vendor Sagent’s online mortgage servicing platform called Care, which aims to simplify this process for borrowers (and you as their lender). In this article, we’ll take a closer look at what Care is, and how it can help borrowers manage their mortgages more efficiently.

FLEXIBLE PAYMENT OPTIONS

Care offers a variety of payment options to help borrowers manage their finances more effectively. Borrowers can make partial payments from multiple sources, schedule recurring payments at any desired cycle tailored to budget needs, and pay from various sources and methods at different cycles. Additionally, they can make one-time payments in seconds and set up wallets for various payment methods and borrowers.

ACCESS TO CRITICAL INFORMATION

Care provides real-time access to critical tax and insurance data and documents, as well as automated event-based text and email notifications. Borrowers can also monitor and quickly fix escrow balances as needed.

REAL-TIME ACCESS TO HUMAN HELP

One of the most valuable aspects of Care is realtime access to human help. Borrowers can reach out to Servion Mortgage representatives at any time, making it easy to get the support they need when they need it. This is especially important regarding loss mitigation resources, as borrowers can quickly access the resources they need to resolve any issues. Care is also designed with you, the lender, in mind. the Care Enterprise platform gives you a real-time dashboard view of all recent borrower event history. That means you can also better understand the borrower’s needs and help them should they contact you directly with questions.

SECURE COMMUNICATION AND DATA SHARING

Care Enterprise also offers secure servicer/borrower communication and data/ document sharing, ensuring you can communicate with borrowers easily and efficiently while keeping their data secure. It allows you to schedule responses and follow-ups to borrower inquiries or potential inquiries addressing concerns, for example, that might come up during tax season.

Care is an excellent service for borrowers who want to manage their mortgages more efficiently—and it keeps you, the lender, in the loop in real time, which keeps your connection to that relationship even stronger.

We are excited to be launching the conversion in August of this year. For our current partners, we are gearing up with several opportunities to learn more about what this means to you from both data and servicing perspectives.

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Mortgage servicing platform upgrade coming soon

THE DATE

2023 LENDING CONFERENCE SAVE

WE HOPE TO SEE YOU AT OUR LENDING CONFERENCE THIS FALL SO PLEASE SAVE THE DATES ON YOUR CALENDAR.

We are in the process of putting together a jam-packed agenda for you that will include great learning and connecting opportunities. Watch your emails for your official invitation, which we’ll be sending your way in July.

Mortgage Sessions

SEPTEMBER 18 AND 19

Business/Commercial Lending Sessions

SEPTEMBER 20

Thanks for all of your support! I look forward to working together on future files and our current files!

Just a quick note to say thanks for all your work on getting the loan approved and closed last week. I really appreciate being in my new place. Without the loan, I wouldn’t have done it.

THE BUZZ

Hear what our partners are saying about us!

Thank you to the Servion team for another great job and providing outstanding service!

The closing went very well! The members are very happy with their new home! They said they received great service and guidance through the process from our purchase team.