Scorecards serve an important purpose for the default servicing industry: they provide a relatively standardized method to measure performance and provide feedback, including tracked metrics, that can be analyzed by the servicer in an independent comparison across all firms.

Required by the FNMA Servicing Guidelines, servicer scorecards are a hot topic among default servicing law firms right now. With their ever-changing nature and the weight they can potentially hold on a firm’s success, we wanted to take a look at the scorecard process and break down how firms can improve their scorecards across the board by solving issues before they pop up.

Scorecards aren’t a perfect system though. Frequently, scorecards can be negatively impacted by aspects of the foreclosure process that are difficult or impossible for the firm to manage. These can often include:

• Constantly evolving changes in state laws that affect timeframes, and require updating scorecards
• Delays that aren’t the firm’s fault, including carve-outs/rebuttals, a client being unable to locate documents or accurately complete tasks in a timely manner
• Pieces beyond the firm’s control: moratoriums, deaths, weather and court delays, outstanding title issues, etc.
• Loss mitigation stopping and starting while the file is in review but not on hold, and lack of servicer notification to stop or restart in the correct timeframe

According to a presentation at this year’s USFNdustry Forum, up to 33% of all referrals end up getting reprojected inappropriately, or needlessly escalated. Firms are left with redundant processes, providing similar or identical documentation over and over again while tracking down files via email/phone – all tasks that require valuable attention from skilled team members.

Firms can quickly become overwhelmed trying to solve these issues, especially as the needs and requirements change from servicer to servicer. With the right technology, however, firms can improve their scorecards without needless resource expenditure and constant upkeep.

NetDirector’s integration service and automation tools provide a flexible solution that can be configured per servicer and helps to resolve issues regardless of source. Fully integrated and automated solutions for Holds and Reprojections allow accurate stops and restarts even in complex Loss Mitigation situations. Additionally, our automated Death Search and PACER Bankruptcy Search functionality eliminates the need for manual data entry and tracking while ensuring the firm’s scorecard improvement and compliance requirements are met simultaneously. This is all combined with NetDirector’s seamless integration to CMS/servicer platform/title/etc. to ensure a connected environment that not only makes life easier but keeps servicers happy and scoring your firm highly.

Combined with Document Request and filtering tools, NetDirector provides an all-in-one solution for improving scorecards, and ultimately, increasing incoming business for default servicing firms. Reach out to us today at gretchen@netdirector.biz to learn more.