*A New Default Servicing Compliance Tool Emerges*
**By Tony Garritano**
***Yesterday I talked about a visionary way to deal with foreclosures. Today I want to continue that conversation, only from a technology point of view. There are a lot of new technology solutions coming out to help servicers better handle defaults. For example, PROPGRESS in Lending has learned that Decision Ready, a provider of default servicing compliance solutions, has launched RADAR, a technology for the disposition of defaulted mortgage assets. RADAR provides a holistic toolkit to manage loan sales and transfers, as well as REO disposition. Here’s the scoop:
****The new technology solution complements Decision Ready’s existing default processing platform, DRAW, which facilitates processing compliance, quality control and audits.
****“RADAR’s integrated platform allows the servicer to apply disposition strategies during early stage delinquency well before the REO phase,” notes Claudia Sanchez, chief information officer for Decision Ready. “The disposition strategy no longer needs to be an afterthought, but an ongoing, parallel process as the servicer is handling the delinquent loan through the traditional default cycle,” Sanchez adds.
****RADAR gives servicers a competitive edge by providing more options for asset disposition and centrally managing disposition strategies. The toolkit easily connects with servicers’ existing asset management technology, and fits in with their current processes.
****The RADAR platform integrates four key servicer disposition components:
****>> The RADAR REO Desktop provides a framework to manage all REO disposition channels including auctions, MLS listings, and internet marketing.
****>> The RADAR Loan Sale Desktop supports single and bulk loan sale transactions for both the buyer and seller by streamlining the bidding and due diligence processes.
****>> The RADAR Short Sale Desktop coordinates and manages the short sale process.
****>> The RADAR Closing Desk provides associates a central clearing desk to review and approve offers for REO sales, REO rentals, loan pool sales, and short sales in a consolidated manner.
****“RADAR works well with our established DRAW product,” said Ravi Ramanathan, president and CEO of Decision Ready. “While DRAW focuses on compliance and efficiency in the default servicing process, RADAR leverages information from the default process and delivers tools to build liquidation and marketing strategies. It also provides channel management,” Ramanathan said.
****Servicers’ liquidation and asset disposition strategies will be increasingly important in the coming months, particularly as available funds for servicing-related costs are limited. “How effective a servicer is at managing dispositions will be a key differentiator in the future,” Ramanathan said.
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.