SEATTLE, WA--(Marketwired - Jul 10, 2013) - While the U.S. economy is slowly recovering from the real estate bubble that burst in 2006, mortgage servicers continue to work with a backlog of troubled borrowers looking for assistance. With more than 1.8 million foreclosure filings in 2012, complying with requirements governing borrower communications have come under ever-closer scrutiny.
The Consumer Financial Protection Bureau (CFPB), Fannie Mae and Freddie Mac all place strong emphasis on earlier and more frequent borrower contact. Further, the U.S. Department of Treasury mandates a Single Point of Contact (SPOC) for each borrower who qualifies for the Home Affordable Modification Program (HAMP). Meeting these strict contact requirements, and delivering a superior borrower experience has challenged many mortgage servicers, large and small.
"While the intentions of SPOC are good -- to lessen borrower confusion, prevent foreclosures and improve high quality customer service -- execution places a significant strain on loan servicing and call center staff," said Chris Carlisle, mortgage solutions director at Varolii. "Requiring individual relationship managers to communicate at frequent and set milestones is a resource-intensive process that's predisposed to be inconsistently executed. The Varolii Interact Platform automates status updates, requests for information and satisfaction surveys, creating a cost-effective process that meets regulations, connects with the easily distracted digital consumer and delivers a positive customer experience."
One of the largest U.S. mortgage servicers turned to Varolii Corporation, a market leader in customer interaction management, to survey distressed borrowers and close the loop on the loan modification process. The automated survey creates an opportunity to ensure a single point of contact was established and confirm that borrowers have received information and assistance, understand the process and can act to avoid foreclosure. The Varolii Interact Platform has allowed the mortgage servicer to initiate contact with a majority of the customers in the loss mitigation process, soliciting direct feedback on the process and assessing borrower satisfaction. This not only increases the productivity of each relationship manager, allowing them to flag and address any issues, it documents that regulations have been met and mitigates future risk.
Specifically, Varolii's consumer survey application allows this leading mortgage servicer to:
- Reach all their customers, easily identifying problems and rapidly initiating steps to remedy issues. Varolii's rules-based platform immediately triggers an alert if a survey delivers a satisfaction score less than four on a five-point scale. This prompts the appropriate member of the loan-servicing team to quickly connect with the borrower and address their concerns and information needs.
- Mitigate risk of future lawsuits or penalties by establishing an audit trail that includes borrower confirmation that every effort was made and the required steps taken to help them. This includes providing evidence that borrowers were engaged, as well as documenting live contact and the timely delivery of information at each point in the process.
"Complying with the varying state, federal and industry regulations that govern how, when and what should be communicated to consumers is becoming much more complex," said Brian Moore, Varolii's financial services industry practice director. "Walking the tight rope between compliance and customer satisfaction is a challenge our Fortune 1000 clients face every day. To that end, we're unveiling a new industry resource that aims to help make sense of the multitude of requirements out there and enable better customer service."
Today, Varolii has unveiled ContactCompliance.com -- a comprehensive resource to help companies understand the most common rules and guidelines that impact outbound consumer communications. The site provides easy-to-understand overviews of key regulations, resources for further research, opportunities to influence regulatory change, the latest news and a "compliance fitness" quiz, that offers insight on the agility and strength of an organization's customer contact policies and tips to help ensure compliance. For more information, please visit www.contactcompliance.com.
About Varolii Corporation
Varolii is a leading provider of customer interaction management applications. Our cloud-based communication service helps organizations more effectively interact with large numbers of customers and employees through voice, text messages, smartphone applications and email, reducing cost of operations and improving service. The company's award-winning Interact platform enables companies to deliver personalized communication on a large scale, achieving better results from fewer interactions. More than 450 companies trust Varolii to manage millions of personalized interactions every business day. For more information, visit www.varolii.com.