How does EarlyResolution relieve regulatory pressure on loan servicers?

 

Loan servicers are acutely aware of the impact that falling short of the ever-changing regulatory requirements can have. Following the 2008 housing crisis, most regulatory agencies framed their missions around making sure customers were being treated fairly and that banks and other loan servicers acted according to the letter of the law. With increased focus from agencies such as the CFPB in the United States and the UK’s FCA, servicers must be able to react quickly and accurately with a clear, provable audit trail.

Quick reactions are crucial

In our experience, consumer loan servicers struggle when massive events like the 2008 crash and COVID occur. Various national, regional and local regulatory agencies define new mandates that servicers must quickly adopt, sometimes within weeks or months. Because servicers are often burdened with complex, inflexible technology footprints, they stumble when they have to change both process and technology.

This is where EarlyResolution excels

EarlyResolution’s best-in-class, SaaS-based default management platform is highly flexible and configurable. Clients benefit from having a cloud-based, business-rules-driven engine that they manage, allowing them to react rapidly to change. Clients are able to jump in and, through the configuration layer, add new business rules to handle the situation within days or weeks. No waiting around for a vendor to make code changes.

We have also seen significant interest and adoption of a technology outsourcing model, whereby Luxoft manages these business rules for our clients. This allows for expert resources to scale up and down according to our client’s business needs.

A perfect example of EarlyResolution’ flexibility was during COVID. One client implemented the new assistance options through our customer portal within a few weeks and was handling hundreds of thousands of customers' transactions a month. Other servicers in the industry had to rely on their internal IT teams to build new systems for handling COVID, often taking months to implement solutions.

Let’s talk

If you’d like to learn more about how the EarlyResolution application takes the pressure off regulatory compliance, read more.

Or maybe you’d prefer to chat through your loan default management pain points, in which case, contact Hunter Stair.

 

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