If you work in loss mitigation, you know the current way of doing things can sometimes leave something to be desired for both you and your homeowners. Despite this, you roll up your sleeves and sit down at your desk every day because you enjoy making a direct impact on your customers and solving problems.
Your Monday through Friday is dictated by phone calls and package tracking, making the work (even on your best days) frustrating and unnecessarily complex. With most transactions taking weeks, sometimes even months, to complete, you may be looking for new and innovative ways to increase efficiencies during a time that is full of emotion for customers.
In this post, we go over the ways that technology can provide greater transparency to affected homeowners and assist them with navigating a difficult process, how digital technology streamlines the entire loss mitigation process, and which digital capabilities every loss mitigation servicer needs in their tool kit.
Why is technology important to the loss mitigation customer experience?
Homeowners expect to receive financial services digitally on their laptops, tablets, or smartphones. To keep up and connect with customers’ expectations, it's imperative for loss mitigation servicers to embrace the conveniences of technology to deliver the best customer experience possible while also maintaining a successful business operation.
How does digital technology support the loss mitigation workflow?
Digital technology, when implemented correctly, can save loan servicers time and money and provides a more direct and transparent experience for homeowners in addition to the following:
1. Digital loss mitigation technology makes the best of challenging work
Digital tools help you connect with at-risk homeowners in new, positive, and productive ways. With easier communication and accessible document signing, collection, notarization, and management, loss mitigation servicers can help homeowners reach improved scenarios more quickly and with less hassle.
2. Loss mitigation servicers can use digital tech to work smarter, not harder
Digital technology can enhance existing workflows rather than replace them. And the right technology provider can help you stay in compliance with rigid deadlines and improve application turnaround times. By processing transactions and supporting your customers digitally and in real-time, you’ll maintain your current process minus the wait times, shipping costs, and other friction points brought on by manual work and paper-based processes.
3. Digital technology improves customer responsiveness
The success of your business hinges on your ability to connect with reluctant customers and get them to take action quickly and correctly. A digital workflow allows you to go from initial phone call to completed loss mitigation application in hours versus weeks with the goal of keeping more people in their homes and at the same time helping you maintain a healthier bottom line.
4. Loss mitigation operations can save on invaluable resources
Digital technology, built specifically for loss mitigation, can reduce your cost per transaction by eliminating the need to mail, ship, and send paper back and forth. It also adds security for affected homeowners, eliminating the need to send sensitive papers back and forth through the mail. In addition to these efficiencies and cost savings, you can lower global paper demands and do your part to protect the environment.
Introducing digital technology into your loss mitigation workflow is a win-win for you and your homeowners. Purpose-built, industry-specific tools can save loan servicing departments time and money, minimize manual work boosting team morale, and improve what can be a difficult experience for your customers with digital conveniences, speed, and more accessible communication.
Related: Covius Announces Integration with Stavvy to Provide RON Signing for its Loss Mitigation Clients | Learn More
Now that you have a clearer sense of how tech can better your business, let’s take a closer look at six digital tools that make these undeniable benefits possible.
The digital capabilities that every loss mitigation department needs
eSign gives servicers the ability to send to-be-signed documents through a secure online portal. Homeowners can then electronically sign the documents directly on that portal.
With eSign capabilities, servicers receive signed loan modification documents from homeowners within minutes, not days. Many customers prefer eSign because the process is more discreet than having a face-to-face meeting to sign documents or sending signed documents through postal mail.
Learn more about Stavvy’s eSign feature.
2. Remote Online Notarization (RON)
Remote Online Notarization (also known as RON) allows servicers to communicate, sign, and notarize documents with homeowners in a separate location through audio-visual technology. Hosting a notarization session remotely provides greater convenience for servicers and homeowners alike.
MISMO®- certified RON solutions provide multi-factor authorization, electronic witnessing, and ID verification features into their platforms for security and peace of mind.
Learn more about Stavvy’s RON feature.
3. Lender Acknowledgement
With lender acknowledgement, servicers can hold meetings with a notary to approve certified documents from previous closings. This capability saves tremendous time by preventing the sending and printing of documents, and the transport involved in in-person meetings.
4. Document Management
Once documents are signed, either via eSign or RON, digital technology can ease frustration and increase efficiency. Document management tools lessen servicers’ storage burden of hosting documents on computer folders, email servers, or cloud-based storage sites.
Look for a tool that is SOC2 Type 1-compliant to feel confident that your documents are stored securely according to industry leading standards. For the storage of notarized documents, seek a certified MISMO® compliant tool for assurance that your documents are stored according to MISMO’s industry-recognized RON guidelines.
eRecording is the process of creating, managing, and securing digital copies of official public information, including loan modification documents, a deed of trust or mortgage. eRecording expedites the processing cycle, reduces the need for printing, signing, and mailing paper to the registrar’s office, and allows you to share documents with all transactional parties, saving you valuable time and money.
Once a package is submitted for eRecording, most technology providers send real-time updates, including if a package is pending, awaiting approval, and has been accepted or rejected. This essential functionality reduces the time-consuming burden of manual communication and provides servicers with greater visibility and a better experience.
Digital technology is essential to the loss mitigation industry
With purpose-built, industry-specific technology, you can process more transactions and support more at-risk homeowners in less time. This critical business efficiency positively impacts your operational costs, the overall morale of your staff, and the experience your customers receive during a difficult and potentially life-defining moment. By embracing consumer demands and digital transformation, your organization will be set up for success now and in the future.