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Th e M Rep o RT | 33 Feature The database, however, allows these com- plaints to creep into the system without speci- fying whether the consumer failed to qualify for a loan mod under HAMP or another government program—or whether there was truly an error on the servicer's part. A Desire for More Contextual Data G oing forward, the industry seems to accept the idea of a database, as long as analytics are informed and the database continues to improve in providing context to individual complaints. Without context, it is merely an echo chamber for consumers. In the right context, it becomes a positive tool for both consum- ers and servicers. "I don't think this has changed anyone's approach, but it is concerning that customers will have the ability to say whatever they want and the only public response we will have via the CFPB is a drop down box to explain what may have happened," Caruso added, when discussing the limited remedies available to servicers to respond to reported complaints. "I don't see how this helps anyone. The more detailed data we have the more we can understand what customers' issues they have and how to address them," Caruso added. "We may not set the rules for topics like whether a customer qualifies for a modifica- tion with HAMP, Fannie, Freddie, FHA but we can treat customers with respect and show empathy with the issues they do have." Daganhardt, who conveyed a desire to help both the CFPB and the industry with improved data, said there is a wish list so to speak of tools that could help all respective parties with data analysis. One of the areas of concern is the drop-down menu borrowers use when making a complaint. Often, a borrower will misclassify a home equity loan for a mortgage loan, which throws off the reporting. Daganhardt also would like to see standard codes for each "reason a loan goes into default." Currently, database users are able to com- ment in a free-flow text fashion, but this makes it difficult to structure and organize the data, Daganhardt said. "That free text goes to the servicer as well, and they can act upon it. But, unfortunately, it gives the opportunity to misrepresent com- plaint trends and volumes before the back- end forensics is completed by the servicers," Daganhardt explained. "If there is more of a survey type of process in the consumer portal, that facilitates more accurate respons- es by the borrower and maybe even offers some education along that way that would be better for everyone else involved." Daganhardt's desired outcome would be a situation in which an improved question and answer process is implemented to collect and organize the consumer data. "The more intelligent questions that they would be asked would ultimately capture more accurate data from them," Daganhardt explained. Right now, she said, "There are a limited number of drop-down menu options. Borrowers are left to their own devices." Tim Rood, Chairman of the Washington, D.C.-based Collingwood Group, said, "I thought the report was insightful and should quiet critics of the industry's cus- tomer service." Kim Yowell, SVP and servicing manager for Tulsa-based BOK Financial, echoed Rood's comments. "The aggregated data confirms that the measures the mortgage banking industry has undertaken to address default related customer issues and complaints has had a positive impact on our customers." But in their second act since the CFPB launch, servicers desire something more than numbers. They want the same thing the CFPB desires: aA complete 360-degree view of each borrower who makes a complaint and of the complaint itself. Without more of this granular data, everyone is doing nothing more than chasing numbers in a box. Editor's note: Ed Delgado is president and CEO of the Five Star Institute, parent company of DS News and MReport. Kerri PanchuK is an attorney and financial writer with more than a decade of experience covering real estate, default servicing, residential mortgage-backed se- curities, retail, macroeconomics, and commercial real es- tate. Panchuk graduated from the Southern Methodist University Dedman School of Law and Texas Tech University. Panchuk previously served as online managing editor/producer and webcast anchor. In April, she rejoined the Five Star Institute as execu- tive director of member groups, overseeing the develop- ment and growth of the National Appraisal Congress and Default Title Coalition. Panchuk is a member of the State Bar of Texas. Brian honea is the Online Editor for His writing and editing career spans 13 years across many forms of media. He served as sports editor for two suburban newspaper chains in the Dallas, Texas area and has contributed for such publications as the Yahoo! Contributor Network and the Dallas Morning News. He has authored four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. THE INDUSTRY LEADER IN eCLOSE TECHNOLOGY. With our iSignroom TM and eSignPad TM technology, it has never been easier to electronically close your transaction anywhere, anytime! One of 5 national eClose providers selected to be part of the CFPB's eClose Pilot Program BE FULLY COMPLIANT WITH AUGUST, 2015 CHANGES TODAY! When you want the ultimate closing experience, think eClose, and think PeirsonPatterson, LLP JASON L. WRIGHT PEIRSONPATTERSON, LLP JASON.WRIGHT@PEIRSONLAW.COM 972.392.7770 ISIGNROOM.COM

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