After a tumultuous year of disruption and uncertainty in 2020, mortgage servicing continues to change in order to meet consumer needs, regulatory demands and best practices. The regulatory environment remains complicated, especially as the COVID-19 pandemic disrupted regular service operations with deferments, restrictions and other measures enacted at the state level.

Additionally, states have already started to pass mandates focused on consumer data compliance and security. These regulations regarding mortgage compliance change regularly which impacts how servicers manage their portfolios. With multiple organizations – such as the Consumer Finance Protection Bureau (CFPB), Fannie Mae, FEMA, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and others – guiding these regulations and outlining protocols, it is necessary but challenging to maintain compliance.

A strategic insurance solution is a critical component to monitor and assess mortgage loans as part of a larger risk management and servicing framework. A comprehensive, technology-driven insurance servicing solution can monitor hazard, flood, wind and earthquake coverage while remaining compliant with the most recent state and federal recommendations and regulations.

Outsourcing the insurance servicing process allows servicers to save time and internal resources, mitigate risk and remain compliant while providing “best in class” customer service to consumers. Technology-driven solutions from Allied Solutions enable institutions to integrate with core data processors to monitor and process insurance statuses and billings more efficiently.

These technologies provide online access and real-time reporting to help track insurance, manage claims, provide blanket protection and communicate with consumers to confirm they’re properly insured. The aim of insurance servicing is to avoid losses and provide excellent customer service to clients and their borrowers.

A comprehensive tracking program’s key integration with system data processors, 24/7 system access and processing make it easy to use. Insurance servicing with Allied Solutions helps decrease claim cycles and administrative workloads while reducing risk to clients’ mortgage portfolio. The full range of coverages include hazard, flood, wind, first and second mortgage portfolios, HELOC, and Real Estate Owned (REO) properties.

Allied Solutions monitors the insurance for adequate coverage while following known rules and regulations issued by the Flood Disaster Protection Act of 1973 (and all subsequent amendments, including the Biggert-Waters Act of 2012), Fannie Mae, Freddie Mac and the CFPB.

Allied Solutions CEO Pete Hilger

Allied Solutions understand the complexities involved with changing regulations and has processes in place to monitor and adapt to changes as necessary with in-house counsel, partnerships with A-rated insurance carriers and coverage available in all 50 states. The company is able to help reduce risk exposure and communicate with consumers via timely, compliant notices and inform clients of necessary changes.

Allied Solutions takes a consultative approach so clients can ensure a comprehensive insurance solution that works for their business, while also remaining compliant.

“Our 40 years of experience helps us provide solutions that allow mortgage servicers to minimize risk exposure on their mortgage loan portfolios,” Allied Solutions CEO Pete Hilger said. “And our ongoing investment in user-friendly technologies help us provide excellent customer service to clients and their borrowers.”

The post Increased need for a compliance-driven insurance servicing solution appeared first on HousingWire.

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