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The Chief Servicing Officer Transition Agenda

Having the pleasure to serve and work with various executives over the last few years, really enjoyed helping a new Chief Servicing Officer with their transition into a mortgage sub-servicer who wanted to run and run fast in their transition.


Sharing some excerpts from the 15 point plan and their agenda for entry below. Hope this helps in your own transition.





Month 1:

1. Review the company's current policies and procedures for managing non-performing loans.

2. Conduct a thorough assessment of the non-performing loan portfolio, including identifying the causes of delinquency or default.

3. Develop a risk management plan to mitigate the risks associated with the non-performing loan portfolio.

4. Create a detailed timeline for reviewing and resolving non-performing loans.

5. Implement a system for tracking and monitoring non-performing loans.


Month 2:

6. Assess the company's current collection procedures and make improvements where necessary.

7. Develop a strategy for foreclosure proceedings, including timelines and legal requirements.

8. Work with the legal department to ensure compliance with all relevant laws and regulations.

9. Establish relationships with third-party service providers, such as collection agencies and foreclosure attorneys.

10. Develop a communication plan for borrowers in default, including regular updates and opportunities to resolve the default.


Month 3:

11. Review and update the loan workout process, including options for loan modifications and refinancing.

12. Assess the company's credit risk management practices and make improvements where necessary.

13. Establish key performance indicators (KPIs) for managing non-performing loans and high-risk loans.

14. Develop a training program for loan servicing staff to ensure they have the skills and knowledge necessary to manage non-performing loans and high-risk loans.

15. Review and update the company's loan servicing software and technology.


By the end of the first 90 days, the Chief Loan Servicing Officer was focused on targeting and delivering on a solid understanding of the non-performing loan portfolio and the risks associated with it. They should have developed a comprehensive risk management plan and established key performance indicators for managing non-performing loans and high-risk loans. They should have also established relationships with third-party service providers and developed a communication plan for borrowers in default. Lastly, they should have reviewed and updated the company's loan workout process and loan servicing software and technology.


We were also focused on providing key actions that are best practices for managing delinquency and non-performing loans, actions included: 1. Establishing clear policies and procedures for managing delinquent and non-performing loans.

2. Developing effective communication channels with borrowers to encourage timely payment and address delinquency issues.

3. Regularly monitoring loan performance metrics and analyzing trends to identify potential issues.

4. Developing and implementing loss mitigation strategies to minimize losses from non-performing loans.

5. Ensuring compliance with all applicable laws and regulations related to loan servicing.

6. Establishing effective vendor management practices to ensure third-party service providers are meeting performance expectations.

7. Providing regular training to staff to ensure they are aware of best practices and compliance requirements.

8. Regularly auditing loan files to ensure accuracy and completeness.

9. Developing and implementing effective collections strategies to minimize losses from delinquent loans.

10. Providing borrowers with resources and support to help them avoid delinquency and foreclosure.

11. Implementing technology solutions to improve loan servicing processes and efficiency.

12. Establishing effective reporting and analytics capabilities to track loan performance and identify trends.

13. Developing and implementing effective risk management strategies to minimize exposure to risk.

14. Conducting regular stress tests to assess the impact of adverse economic conditions on loan performance.

15. Developing and implementing effective disaster recovery and business continuity plans.

16. Establishing effective quality control processes to ensure loan servicing activities are performed accurately and efficiently.

17. Ensuring compliance with all investor reporting requirements.

18. Developing effective foreclosure prevention strategies to minimize losses from foreclosures.

19. Developing and implementing effective loan modification programs to help borrowers avoid default and foreclosure.

20. Establishing effective internal controls to ensure loan servicing activities are performed in accordance with policies and procedures.


The attached link has additional details on leading a transformation from the C-suite view point: https://www.mattallendevelopment.com/post/the-c-suite-agenda-transitioning-with-impact


About the author:


Matt Slonaker is a highly accomplished business executive, with a strong track record in generating revenue growth and leading teams. He has experience working with both startups and multibillion-dollar market leaders, and has managed over a billion dollars in revenue in the last decade. He has founded his own company, M. Allen, and served over 20 clients since 2020, and has also worked in executive roles at global companies such as Firstsource, Morgan Stanley, JP Morgan Chase, and H&R Block. He is skilled in operations, revenue enablement, information technology, and other areas. Additionally, he is a US Military Combat Veteran and a career coach for military veterans in transition to the civilian sector since 2017.



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