They are referred to as Milestone Events, Step Updates, Standard Events, Tracking Events, etc. Default Servicing (i.e.: Foreclosure & Bankruptcy) attorneys and trustees deal with hundreds or thousands of milestone events on a daily basis. These events are tracked through the life of a foreclosure and vary by state. Examples of milestone events include: file received by attorney, first legal action, service complete, sale held, etc.
To update these events – attorneys are required to log into to various mortgage servicer (“servicer”) web sites (i.e.: LPS Desktop, VendorScape, etc.) access the correct file number and enter the event and completion date. Major Servicer platforms that support event update integration are: LPS Desktop, VendorScape, LenStar, Clarifire, and BAC BPI. These systems support data interfaces so that the events can be completed with automation.
This list is in no way complete. I invite you to add your favorite tips in the comment section.
Top 5 Milestone event automation tips:
- Implement incrementally. Start with easy events such as file received & first legal action then move to more complex events such as sales results. Implement one or two events at a time so that you can assimilate into your business process.
- Manage Exceptions. Once live with automation – you will now need to track events that do not complete for some reason such as: event already completed, case ID does not exist, file closed. By proactively analyzing exceptions – you can track trends while implementing process improvements.
- Run your sync reports. Most servicer systems offer synchronization reports to match up unique client system IDs to ensure proper updates to active files.
- Communicate with staff members. Include key business unit staff in the loop during implementation and ongoing efforts to ensure buy-in and maximize process automation.
- Follow 80/20 rule. Do not go into this thinking 100% automation up front. You will get the best results when you don’t sweat the small stuff. By automating 80% of your events – you will maximize return on investment and position your firm to handle more files and improve accuracy. The 20% consisting of exceptions can be managed with other automated processes.
Milestone event automation benefits all default servicing parties involved by: reducing labor, control costs, improving data purity, and trimming timelines. For the attorneys and trustees – event automation will boost your competitive advantage by improving servicer scorecard rankings and overall profit margins.