Risky Business

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feature SERVICING Or ig i nat ion s e r v ic i ng RCS Forges Path to Servicing Distinction a na ly t ic s RCS anticipated market changes that allowed it flexibility as the industry works to stabilize. By Ashley R. Harris In 2006, after watching the housing bubble swell, RCS formed as a mortgage servicer in anticipation of the mortgage crisis. Because of the company's foresight, it has none of the legacy issues that have encumbered many larger mortgage servicers. The core management team is made up of experienced senior servicing professionals who recognize the importance of availing capacity and scale to effectively manage mortgages at all stages of performance. M // What specific strategies position RCS as a high-performance servicer? RCS // RCS's core principle to servicing is preserving portfolio value. The key to preservation is engaging the borrower in a dialogue to address the situation, developing an approach from the options available and then guiding the borrower to a successful solution. RCS continually monitors key metrics to ensure each portfolio is staffed appropriately to enhance borrower outreach and customer service and deliver industry-leading "right-party" contact. RCS delivers customized loss mitigation technology to the desktop, enabling our team to respond quickly to a borrower's situation with consistent application of a rules-based decision engine. The loss mitigation system is capable of analyzing all options available to the borrower, enhancing efficiency and the borrower's experience. RCS has invested in highly advanced decision-based protocols that automatically optimize the workout solutions to meet both the needs of the borrower and the requirements of the mortgage holder. Borrowers are quickly qualified and offered best executions from RCS's full toolkit of loss mitigation strategies. RCS has a significant portfolio of loans serviced for others and, as a result, knows that transparency to the investors is critical. RCS developed an investor portal for the stakeholder to review key performance metrics relating to the loans serviced by RCS. Investors have access to performance data on a pool or loanlevel basis through the portal, and they are able to pull standardized mortgage system reporting and build their own reports. M // What's next for the company in terms of acquisition initiatives? RCS // RSC will continue to seek opportunities to leverage our third-party servicing business. The company has spent significant time ensuring we understand and evolve with the new servicing standards. Our third-party servicing offering provides a turnkey solution for investors with servicing intensive portfolios that is compliant with today's high standards. We will also continue to seek opportunities to acquire MSRs, The M Report | 53 se c on da r y m a r k e t R esidential Credit Solutions (RCS) can be considered by some as high-performance servicer. The functional aspects of servicing mortgage loans are basic by nature, however, a high-performance servicer incorporates the functional aspects of traditional servicing with performance-based technology, procedural protocols, and resolution-centric staffing.

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