Centralized Automated Solution
In Early 2011 ELMS partnered with a Tier One Servicer to create a centralized solution in their loan servicing department for the FDPA Flood Notification requirements.
The Servicer’s model consisted of multiple processes and systems to determine a property’s flood status, flood notification mailings, monitoring of the 10 day notification period and tracking of the borrower’s acknowledgement of receipt of the flood notification. In collaboration with the Servicer, ELMS was able to provide a Centralized Automated Flood Process for loans in the Loan Modification process which resulted in the following:
- Reduced error rates in Flood Determination by automating the process and removing it from approximately 17 lines of businesses
- Automated the generation of Flood Notifications
- Ensured that Flood Notices were mailed to borrowers at least 10 days prior to the Permanent Modification package mailings to the borrowers
- Placement of Acknowledgement language in loan modification documents as evidence of the borrower acknowledging receipt of the flood notification
- Provided evidence of outgoing & incoming documents in imaging systems.
By providing this Centralized Automated Process, the client met and exceeded a 97 percent success rate mandated by regulatory agencies. Added benefits included lowering costs and reducing errors.
In addition, ELMS created a WORKFLOW TOOL/AUTOMATED CHECKLIST used to ensure:
- A current Flood Determination was ordered and received.
- The Flood Notification was sent out at least 10 days prior to the mailing of the Permanent Loan Modification Offer.
- The Flood Notice was acknowledged by the borrower either prior to the Permanent Loan Modification Offer being executed (borrower returns signed Flood Notice) OR Flood Acknowledgement language was included in the Permanent Modification Offer and was signed, returned and imaged.
- Reporting on the audited loans & the loans that passed Quality Control.
By providing the Workflow Tool, this allowed the company to implement a QA/QC team that will utilize the tool and provide monthly reporting to senior management & regulatory agencies on the centralized process.