DecisionReady Launches Vendor Compliance Management Module
Default servicing technology provider DecisionReady has released a new compliance management module that will help servicers handle relationships with their vendors.
After federal regulators conducted on-site reviews of 14 mortgage servicers during the fourth quarter in 2010 and found that these servicers did not properly structure, conduct or manage their third-party vendor relationships with outside law firms and foreclosure services providers, the Irvine, Calif.-based technology firm decided to launch this new module to solve the problems regulators found.
The regulators said that the failure to effectively supervise these outside vendors resulted in increased reputational, legal and financial risks for the servicers.
Matt Lichtner, executive vice president of sales and client relations at DecisionReady, said the vendor compliance management module is going to allow servicers to review vendor activity and objectively score vendors on accuracy, service level agreements and process conformance.
The module focuses on reviews of foreclosure and bankruptcy attorneys, as well as eviction processes. Other features for the module is that it will address key consent orders and allows for representative sampling of every vendor type and client.
“Today's mortgage servicers need to conduct ongoing evaluations of vendors using score cards,” Lichtner said. “It [the module] also helps servicers select vendors based on past vendor performance, rather than relying on a subjective vendor selection process.”
DecisionReady said future vendor compliance modules will include asset management, short-sale transaction coordination, field inspections and other third party outsourced services.