GSE/GNMA Master Servicing Application & Sub-Servicer Vendor Management Support

GSE/GNMA Master Servicing Application & Sub-Servicer Vendor Management Support

Project Objective

To provide support to mortgage bankers who want the option of retaining and holding the MSR on the loans which they originate by becoming an agency approved Master Servicer.  As described in the deliverables below, we provide assistance and guidance to clients throughout the application process to ensure that they are building a servicing construct that meets GSE and/or GNMA mortgage servicing requirements, as well as all regulatory requirements.  Once approved, we continue to partner with the client in transitioning to reasonable servicing management self-sufficiency.

Deliverables

We design a specific program geared to a lender’s individual needs with advisory services, training, and continuing support to the lender as the lender goes through the servicing management development process:

Phase One:  Set the Servicing Management Framework

  • Conduct a review of the lender’s current servicing and sub-servicing policies and procedures for compliance with CFPB and GSE/ GNMA guidelines.
  • Provide a gap analysis of recommended changes as necessary for compliance with applicable CFPB regulations as well as investor guidelines and applicable federal and state laws. Draft policies as may be necessary to achieve approval.
  • Consult with the Client as to the operational and financial implications of retaining the MSR on loans that they originate and/or purchase.

Phase Two:  Engage an Appropriate Sub-Servicer

  • Provide counsel and support the RFP process to identify and select a qualified sub-servicer.
  • Support the contract and engagement process.

Phase Three:   Setup Initial Oversight Process/Initial Training for Designated Management

Support sub-servicer oversight with a focus on managing cash management, investor reporting, customer complaints, default management, monitoring key servicing performance standards, and performing loan quality analytics to support loan origination underwriting management.

  • Initial training for the designated manager in servicing management and sub-servicer oversight. This is typically a face-to-face training.
  • Support establishing required custodial accounting processes as well as the timely transfer of loan servicing from corporate to the investor’s account.
  • Establish appropriate sub-servicer performance benchmarks and assist lender in setting up vendor management monitoring processes.
  • Establish an appropriate customer complaint tracking system to closely monitor possible customer service issues from the sub-servicer and how those issues are satisfactorily resolved in a timely manner.

Phase Four: Support Sub-Servicer Oversight

  • Provide designated servicing management with continued training, support and counsel that enables lender to properly manage all originated mortgage loans. Training time is conducted on a mutually satisfactory schedule – typically in 1 hour sessions.
  • Meet monthly with servicing management to review servicing portfolio performance and sub-servicer performance. Counsel on immediate issues is provided on an as needed basis by telephone.
  • Augment oversight with an annual sub-servicer audit/vendor review when retained portfolio achieves a critical mass (typically 500-1000 loans).

Phase Five: Lender Becomes Self-Sufficient

  • Designated manager becomes reasonably self-sufficient and is comfortable with assuming servicing oversight.
  • Support oversight with an annual sub-servicer audit/vendor review.