Let SCA’s Investor Accounting & Collections/Default Management Teams Increase Efficiencies & Minimize Risks

by Bill Dolan, CMB, AMP

For the last several months, both prospects and clients alike have contacted SCA to raise a flag pertaining to out-of-balance conditions existing between their Investor Accounting departments and their core platform and the GSEs, effecting reporting, cash balancing and reconciliations with Freddie Mac, Fannie Mae & the FHLBs.

After researching this situation, reviewing systems and GSE reports, as well as DDA statements for custodial accounts, etc. SCA was able to identify several issues dating back to the change initiatives that the GSEs implemented back in March 2019 which converted their single-family reporting requirements to align with the industry standard, changing the remittance and accounting cycles, the type and method.

It is apparent that several vendors of core platforms failed to read the bulletins addressing the timing of these change initiatives or failed to meet the programming deadlines communicated by the GSEs, including the recommended Customer Integrated Testing (CIT) scenarios that applied to the Servicer’s portfolios and its vendor plan for testing these scenarios; ensuring that the Servicer’s portfolio, was reflected in the vendor’s testing plan, including developed test mitigation plans for resolving the defects. Simultaneously, the GSEs should have provided the necessary training required to adapt to these new changes for both servicing and Investor Accounting personnel and therefore both share in responsibility.           

Servicers today have enough on their plates dealing with the recently proposed 2021 Mortgage Servicing COVID-19 Proposed Rule (released April 5, 2021) regarding additional protections for borrowers during the COVID-19 emergency as well as the interim rules regarding loss mitigation requirements and adherence to Regs X and Z.

If your institution is facing some of these challenges, leverage SCA’s fulfillment services programs (Investor Accounting, Collections, Default Management and Loss Mitigation) designed to help your bank or credit union succeed. Let the SCA team support your efforts to reduce expenses, eliminate costly errors and streamline your mortgage plant, adding capacity to the areas where most needed.

For a free consultation, contact Bill Dolan, Director at (617) 694-2617 or review our other services that SCA provides by visiting our website at: www.scapartnering.com.