Bankers Want Their Servicing Ops To Be Less “Special”

As more and more statistics come out showing lower delinquency percentages and decreasing foreclosures, many mortgage bankers are asking themselves if they really need a default or “special” servicing operation. The passing of Dodd-Frank and the birth of the CFPB have dramatically changed the landscape of default servicing, particularly now that the new servicing standards are in effect and being strictly enforced. What many banks have come to realize is that the costs and risks associated with running a default servicing platform today are simply just not worth taking on in-house.

A bank’s core competence, in most cases, is its ability to measure risk and make intelligent loans to its customer base. However, today, an effectively run default servicing operation can draw excessive amounts of precious time, talent and capital away from a bank’s key lending efforts. Most banks’ troubled loan portfolios are shrinking yet cost structures are moving in the opposite direction. It can be a multi-million dollar undertaking to manage even small portfolios when you look at both the operational and compliance components necessary to establish the appropriate compliance regime and then to be able to stay current with ever-changing regulatory standards and government borrower relief programs. Policies and procedures must change, technology needs upgrades, more staff is needed to execute the new procedures and more managers are needed to monitor and administer the operation. At the same time, the penalties for missteps can be large and the mortgage industry is still struggling to truly understand what they will actually be.

It is also important to consider negative exposure for the brand. When the hard cases arise and foreclosure is a likely outcome, many banks are choosing not to fight those battles and face the potential negative headlines, and are placing that responsibility with another institution with a strong track record and deep experience handling the toughest cases. Many banks are saying they have enough headline risk and the reward of holding on to the servicing simply is not justified.

There are other financial reasons for banks to lose interest in servicing. It is well understood in the industry that mortgage servicing rights (MSRs) will receive weaker capital treatment under BASEL III. Specifically MSRs will cap out at being 10 percent of a bank’s common equity Tier 1 capital and any MSRs that are not deducted from a bank’s common equity Tier 1 ratio will move from being a 100 percent risk weighting to a much more punitive 250 percent risk weighting. The effect of losing this powerful capital ratio enhancement is certainly taking meaningful luster out of the MSR value proposition for banks relative to other assets.

A second and more immediate benefit to exiting servicing is the actual sale price of the MSRs (received at origination or after some degree seasoning), which are trading at a premium to historical levels given the low interest rate environment and the market’s rabid search for yield right now across the credit spectrum. Many bankers are addressing origination volume shortfalls by taking advantage of the strong investor demand for MSRs and their intrinsic interest rate hedge. MSRs are being bought into very leverage-friendly structures and investors continue to bid up the asset class. Bankers are also taking notice that they can offload costly servicing obligations by selling both performing and non-performing whole loans, which are each trading at high levels (as a percentage of UPB and property value), as well. For example, a June HUD non-performing loan sale resulted in most of the pools selling in the mid-high 70s as percentage of BPO (broker price opinion or essentially a quick sale property value). For many banks that represents a much more attractive resolution than managing the delinquent loans themselves over a long period of time. Instead they would much prefer to move on and allocate that capital in an asset more closely tied to their long-term growth plans.

Strategic human resource allocation, brand protection and maximization of capital in the midst of a hot MSR/whole loan market are all themes that are forcing bank executives to re-assess the optimal strategy for their servicing (particularly their default servicing) operations and the assets they manage. The mortgage sector can move quickly and then inch along quite slowly, so it is wise to constantly gauge where your business is headed relative to the market, enabling you to make the right decisions for your institution no matter what environment you face.

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Technology Puts The “Special” In Specialty Servicing

You Can Download This Full Article As A PDF HERE

Jason-SpoonerTechnology is pervasive in modern life. Our love/hate relationship with it means that we constantly poke fun at the machines that both run our lives and make them easier. But there is little doubt that technologies like smartphones and social media are here to stay, and their impact on society is profound. The machines seem to be taking over our lives, particularly as we see teenagers with their faces buried in the screens of mobile devices, oblivious to the world around them as they instantaneously (and ironically) communicate with hundreds of people on Twitter and Instagram.

Still, there are remarkable examples of how technology and human effort work together to accomplish great things, and the special/component servicing business sees them every day. Without technology, many more families would have suffered the nightmare of foreclosure during the mortgage crisis. Indeed, the recovery would have been even slower than its already disappointing pace. In many ways, technology puts the “special” in special servicing – but it needs able human users to realize its full potential.

About a hundred years ago, author and philosopher Elbert Hubbard wrote, “One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.” The servicing industry’s approach to the rising tide of mortgage delinquencies in the latter years of the last decade was to use ordinary measures, because that’s all that was available to them at the time. The prevailing technology was basic and designed to handle occasional delinquencies, not waves of them. When delinquencies mounted, the technology couldn’t keep up, and the results were far from satisfactory.

When Wingspan Portfolio Advisors came on the scene in 2008, it brought with it not only a new servicing approach; it also adopted a new technology approach that had distinct advantages over other designs. Using a central data warehouse, for example, had the benefits of having a place for everything and everything in one place. Most of the traditional servicing legacy systems consisted of multiple data repositories and added-on layers of software that bridged gaps created in mergers and acquisitions over time. Many still do. Without legacy systems to contend with, Wingspan has been able to implement its high-touch methods with unfettered efficiency. Our technology approach has also empowered a formidable resource: the individual loan resolution specialist.

A highly trained person armed with effective methodology is a game-changer. Give them the tools and empower them with the authority to act, and they will amaze you with their achievements. Finding people who are empathetic, smart and eager to find solutions is the key to success in the industry’s most difficult segment, and great technology can never replace them. Instead, it enables them to succeed by putting the information they require at their fingertips.

There are five main reasons technology and special/component servicing go together like words and music:

Everything needs to be accessible. When working with distressed borrowers, it is sometimes difficult to get them on the phone, so when you do, you need to maximize the opportunity. Technology can betray you here: people beset by collection agents recognize the delay when they answer the phone as an auto dialer in use. We don’t use them because the last thing we want to do is seem like a bill collector. When we initiate a call, we want to make it meaningful, nonthreatening and productive, and our technology puts all the borrower’s information on the specialist’s screen to call upon as needed.

Everything needs to be immediate. We want to accomplish as much as possible with each conversation, so our information has to be current and immediately available, whether it has to do with payment histories, property values or credit ratings. We often have to reference property trends in the borrower’s area in order to point out positive improvements that are occurring. Having access to the most up-to-date information can mean the difference between success and failure in obtaining lasting and sustainable loan modifications. Sometimes the information that can help comes from a non-obvious source, such as a recent news story about a new assembly plant or factory opening up in the area, one that will drive jobs and housing demand. All kinds of information can affect success in handling distressed loans, and it has to be current.

People won’t make decisions without data. People make emotional, impulsive decisions all the time, but it is rare in our business that commitments will be made without data to back them up. For example, it is true that people have highly emotional investments in their homes that have nothing to do with finance. This is incredibly important, something Wingspan’s methodology calls “psychological equity.” While our experience has shown us that it is a main driver in understanding why and how much a borrower wants to keep the family home, it needs to be backed up with data from the loan resolution specialist. If they can accurately portray the area as seeing positive signs for stabilizing values in the foreseeable future, a negative equity default can be modified with a workable payment plan. Without good data to back up the commitment to stay, the transaction has far less of a chance. Another example might be access to information that helps foster a discussion on how costly rentals will be versus staying in the home. Most families want the single-family home lifestyle, and with the right data on hand, comparisons can be made available during a call that can produce a positive outcome.

People need time. In our experience, you simply cannot rush a process that is highly charged with both emotion and long-term financial repercussions. Whether dealing with outbound or inbound calls, we never hurry the conversations and have learned that the longer we’re able to talk with borrowers, the greater the levels of trust that can be established. This was a radical approach when Wingspan started, and perhaps the one most in conflict with traditional servicing models. For special and component servicers, it is less a numbers game than it is one of depth; superficial calls, where empathy is sacrificed for time, are harmful to our cause. The more information we have available for each contact via our technology, the greater our chances for having long and productive phone calls. We take great pains to establish early on that we are not calling to nag borrowers, but rather are seeking to find ways to keep them in their homes. Once we learn enough about their economic realities and their non-financial investments in the home, we can make real progress in retention efforts. This takes talent, patience, empathy and time – supported by information and the technology to deliver it where it is most needed.

Technology enables empowerment, and empowerment leads to success. This is not what the techies call a “squishy” concept that hinges on something from a motivational speech. The empowerment here means that the “boots on the ground” who work directly with borrowers need to be able to make decisions on the spot. Our technology makes this happen by creating economic scenarios for borrowers that are pre-approved within investor parameters, therefore requiring minimal steps before creating executable agreements. Consider this example: a borrower is defaulting because of a job interruption, but is training for a new career while working one or more part time jobs. Consistent income is established that is realistically sustainable, and with other sacrifices that would support property taxes and insurance, the amount falls within investor minimums. The resolution specialist can send an electronic document that can be e-signed immediately while on the phone and returned. A commitment is executed without the doubt and waffling that always seems to occur when a mail or courier-involved time lag is necessary. The right technology and approach include the ability to empower the person closest to the transaction to create positive results.

These days, few things are possible without technology; more often it seems that everything is possible with great technology. While futurists will have us believe that machines will be doing everything for us one day, it is more probable that for the really hard things, knowledgeable professionals will remain in the driver’s seat. Actual driving may be different – if you believe Google, it will be doing that for us. But using Google to access data that live people need to help families stay in their homes will not be changing anytime soon.

Technology is doing something else for special servicers, too, at least for Wingspan Portfolio Advisors. Where once we were best described as “special and component servicers,” we are more accurately described today as a “diversified industry outsource provider.” This has been an evolutionary step that was facilitated by technology as well as methodology. It made great sense for many banks and servicers to expand their use of our resources into other areas, particularly as their own needs changed and it was less advantageous to keep large staffs. For about 800 of these staff members who migrated to Wingspan over the last year, their roles changed little and their employment was uninterrupted.

How does this sort of adaptive scalability work in the real world? Actually, it worked seamlessly, thanks to our technology. Fifty machines may not be able to do the work of one extraordinary person, as Elbert Hubbard said, but when you put great machines together with great people, the results are nothing short of amazing.

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Moody’s Downgrades Ocwen Loan Servicing

Moody’s Investors Service has downgraded Ocwen Loan Servicing, LLC’s servicer quality (SQ) assessments as a primary servicer of subprime residential mortgage loans to SQ3+ from SQ2- and as a special servicer of residential mortgage loans to SQ3+ from SQ2-. Both assessments remain on review for further downgrade. The ratings agency also lowered the company’s component assessment for loan administration to average from above average.

Moody’s SQ assessments represent its view of a servicer’s ability to prevent or mitigate asset pool losses across changing markets. Moody’s servicer assessments are differentiated in the marketplace by focusing on performance management. The assessment scale ranges from SQ1 (strong) to SQ5 (weak).

In Moody’s last SQ assessment of Ocwen, on 21 August 2013, Moody’s maintained the company’s SQ2- assessment as a primary servicer of subprime loans and its SQ2- assessment as a special servicer of residential mortgage loans. Both SQ assessments remained on review for downgrade owing to concerns about Ocwen’s rapid portfolio growth and the challenges of integrating the acquired servicing platforms and managing the additional distressed loan portfolios.

The assessment action reflects the heightened regulatory scrutiny of Ocwen Financial Corp. by the US Securities and Exchange Commission (SEC) and the New York Department of Services (NYDFS). Based on their findings, these agencies could restrict Ocwen’s activities, levy monetary fines, or take additional actions that could negatively affect the company’s financial strength and servicing stability.

The assessment action follows Ocwen Financial Corp’s announcement on 18 August 2014 that it had received a subpoena from the SEC in June seeking documents related to its business dealings with corporate affiliates and a probe related to the interests of the executives in the companies. The NYDFS on 4 August 2014 also issued a letter to Ocwen that raises concerns about potential conflicts of interest and potentially inconsistent statements and representations regarding corporate governance.

Moody’s also lowered the company’s component assessment for loan administration to average from above average based on regulatory concerns regarding force-placed insurance fees and the role of Altisource Portfolio Solutions, S.A. in the planned implementation of Ocwen’s new force-placed insurance program. Ocwen also has embarked on an initiative to review all loan-related imaged documents to identify duplicate documents, index documents that are not appropriately classified and reimage documents, which are not legible. Ocwen expects the effort, which should improve the quality of servicing, to be completed in approximately one year.

The review for downgrade for the special servicer and the subprime servicer assessments reflects Moody’s continuing concerns about Ocwen’s challenges integrating the acquired servicing platforms and managing the distressed loan portfolios. It also reflects uncertainty regarding the impact of the regulatory scrutiny and possible regulatory actions on the company’s servicing stability.

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Outwitting The “Black Swan”

The idea of unexpected events having great impact on future history is not a new one. The 2nd century Roman satirist Juvenal coined the phrase “black swan” to depict something unusual and rare (in his case, he was pessimistically describing the rarity of “a good person”). It was a common expression for something highly improbable as far back as the Renaissance. In business, it refers to an event that is disruptive or even potentially catastrophic, and is perfectly descriptive of the mortgage industry’s experiences since 2008.

The mortgage meltdown was improbable, rare and cataclysmic, a black swan trifecta. And it led directly to the CFPB changes the industry is presently in the process of implementing; once the black swan appears, the rules change and a new reality emerges. Dealing with the industry’s lack of preparation is ushering in a new era of regulation, and it indirectly centers on mortgage technology.

Recall the early days of the foreclosure crisis and the “blanket mod/one size fits all” approach that big servicers first employed as a strategy to deal with regulator demands. Untold millions were spent in the often-fruitless process. The lesson learned is that high-touch, customized solutions work and that generic processes are an extreme waste of time. The special strategies that have evolved feature diverse component services providers – and excellent technology.

Wingspan Portfolio Advisors is a prime example. When we commenced operations in 2008, it was with an emphasis on high-touch methodology and technology developed specifically for the purpose of delivering it. A centralized data warehouse and specialized default management software platform served the individual loan resolution consultants with detailed information they could use to make pre-allowed decisions on modifications, for instance. At a time when others without such technology needed to go back and forth with traumatized borrowers (and similarly traumatized investors), we were able to make lasting decisions with consistent speed. Another key to success was the luxury of taking large amounts of time to establish trust and rapport with borrowers, leveraging our proven methods as enabled by the advanced technology approach. The high success rate achieved allowed us to offer a pricing model that rewarded positive results rather than passing costs through to servicers. Understandably, this factor was very popular with high volume servicers and had much to do with establishing the relationships we enjoy today as an essential strategic partner with large servicing organizations.

Today’s diversified component services providers are not solely for overflow, nor are they simply outsources for extraordinary circumstances, like black swan events. They are part of the post-meltdown reality in which mortgage servicers no longer have to be all things to all people, but instead can do what they do best – work with the vast majority of loans that pay as agreed. Component services providers are integral to the primary solution now with the less typical loans, and while servicers are outsourcing more work these days, the outsourcing is done to far fewer and much larger companies than before.

Five years ago, companies could enter the special servicing space with comparatively few resources; today, the barriers to entry are immense. These 21st century companies have significant financial resources, are technologically sophisticated, and possess well-tested infrastructures in systems, legal and all other aspects of servicing. They have bulletproof processes for every step in each of the functions they perform, allowing seamless compliance with CFPB and other requirements servicers face in the current regulatory environment.

Technology is not the answer, in and of itself, but it is the enabler. Without the right technology, the right methodology is virtually impossible to implement economically, regardless of how well it is conceived.  Technology makes optimal execution possible, and it is an inherent quality of the successful modern component services provider as we strive to outwit that clever black swan.

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Training Is Very Important

*Training Is Very Important*
**New Policy Emerges**

learning***The servicing space isn’t for the un-educated. It takes industry knowledge to do this kind of work. To this end, Fay Servicing, a special servicer that manages distressed and at-risk residential mortgages, introduced its new employee training program for its recent hires, which focuses on how to foster closer relationships with borrowers, staying in compliance and leverages the knowledge and skills new-hires possess given their previous loan origination experience.

****The program occurs at the company’s corporate headquarters in Chicago and offers instruction on a variety of key skills, such as managing the initial call with borrowers, refining listening skills, meeting all applicable compliance requirements and conducting a Personal Budget Analysis (PBA) for borrowers which helps to engage the borrower and establish affordability.

****Fay Servicing employs servicing professionals with prior loan origination experience, which enables the company to quickly begin more advanced training in distressed servicing. Each training class is kept relatively small and new account managers are trained by staff who have already successfully completed the transition from originator to servicer.

****“By selecting employees with previous experience in the mortgage industry, we are able to focus our time on the necessary skills that will make them special servicing experts,” said Ed Fay, chief executive officer. “Experienced and well-trained staff have fueled our growth during the past several years.”

Conquering Servicing Growth Pains

*Conquering Servicing Growth Pains*
**By Tony Garritano**

***I enjoy bringing you stories about how technology is making a clear difference. In this case specialty servicer Wingspan Poretfolio Advisors has been growing and growing. I know you’re thinking this is a problem I’d like to hae. But when you grow so much you do have to deal with new issues. Very simply put, as the default management business across the country experienced rapid growth, Wingspan Portfolio Advisors started to see a significant increase in the number of its clients that needed assistance managing their portfolios. Whether it was contacting borrowers or managing loss mitigation efforts or defaults, Wingspan needed the technology to assist in all of these processes. By using proven analytics accompanied by a personal touch, Wingspan was able to harness technology to develop an effective servicing strategy. Here’s how Wingspan overcame the pains associated with heavy growth:

****With its business rapidly expanding, Wingspan wanted to continue to provide its customers and consumers with the stellar service that they had become accustomed to receiving. That meant reevaluating its internal processes. Management determined the company needed a more efficient, automated way of conducting borrower outreach in its component services business. After considering four vendors, Wingspan decided that partnering with IndiSoft as its technology provider would help them reach their business goals. Not only did IndiSoft work with a mutual client, a leading mortgage insurance provider, it had the advanced technology and experienced team to assist Wingspan in achieving its customer contact goals. Furthermore, Wingspan had additional confidence in the technology’s capabilities since it knew that HOPE LoanPort uses the RxOffice platform, which connects 14 mortgage servicers managing more than 85 percent of the residential mortgages in the U.S. with 750 housing agencies and more than 3,800 counselors to assist distressed borrowers.

****As a result, IndiSoft customized its RxOffice Outsourcer module to meet Wingspan’s workflow needs by creating enhanced communications and increasing the level of transparency throughout their process. Extremely impressed with the product, Wingspan selected another IndiSoft module, RxOffice Short Sale Services, to improve the efforts of its Wingspan Real Estate Network (WREN). The RxOffice module aids WREN by managing and accelerating the short sale process, serving as a liaison among its national network of real estate agents and brokers. The module allows real estate professionals to see the status of each file loaded in the system. RxOffice Short Sale ensures that borrowers, brokers and title companies consistently remain up-to-date on the status of the process. While Wingspan is not the servicer of record on the loans, this technology allows the company to offer this component service as a value-add to its clients. With the growing requirements of programs, such as the HAFA and HAMP, RxOffice gives Wingspan the ability to act as a control tower for all participants, which results in a smoother process and more positive outcomes.

****Since Wingspan started working with IndiSoft in 2010, the company has significantly improved the efficiency of its short sale process and created much needed transparency between all parties involved in the loss mitigation and default process. By working closely with the IndiSoft team, Wingspan was also able to customize the technology to fit its default management processes. Because RxOffice is intuitive, Wingspan easily trained users and now experiences minimal errors.

****Wingspan has run approximately 30,000 to 35,000 assets through the RxOffice platform thus far and has gained considerable time and cost savings as indicated in the amount of time needed to gather information from homeowners from 45 to 60 minutes down to just 10 to 15 minutes.

****Wingspan also reduced the number of days for it short sales process, which it attributes to the use of RxOffice Short Sales Service; the decisioning process is down to 40 to 50 days, which is much quicker than the industry norm. Wingspan has reduced turn times on approvals by at least one-third from normal industry standards by using technology and rule-based systems. The company uses technology to obtain all documents and decisionable files with improved legibility, due to interactive packages. Additionally, deploying borrower portals and allowing different intake strategies through technology allows Wingspan to increase efficiency and compliance.

****In addition, because of Wingspan’s effective use of technology and its proven processes, 80 percent of the loans Wingspan has modified are still performing.

Market Analysis: Experience Really Matters These Days

*Experience Really Does Matter These Days*
**By Tony Garritano**

***We all know a lot of good people that are out of work. It’s sad really. I laugh when the media say we’re doing so much better because unemployment is down to 8.3%. Is 8.3% unemployment recovery? I don’t think so. The good news is that if you’re an experience lending executive, you can get employment. There is a premium for people who “know” this business. Let’s face it, if you don’t know anything about mortgage lending, how can you fix the business? You can’t. Case in point, here a few recent hires that demonstrate that experience matters:

****Specialty servicer Wingspan Portfolio Advisors has announced that Ed Delgado will join the company as chief operating officer, effective April 2, 2012. Formerly CEO of the Five Star Institute, SVP of Wells Fargo and executive at Freddie Mac, Delgado has more than 20 years of experience in mortgage banking and is widely recognized as a thought leader and innovator in the industry.

****While at Five Star, one of the nation’s largest trade groups, Delgado led various industry initiatives and hosted discussions with former President George W. Bush, New York Mayor Rudolph Giuliani, First Lady Laura Bush and U.S. Secretary of State Condoleezza Rice. He pioneered the formation of the Lender Leadership League, a consortium of the nation’s top mortgage-servicing executives. Prior to joining Five Star, Delgado was SVP of government and industry relations at Wells Fargo, where he played an integral role within the company’s servicing and default group and served as a leader in the mortgage community, government agencies and industry trade groups in Washington, D.C. While serving as a key representative to the U.S. Department of the Treasury and in conjunction with industry leaders, Delgado was supportive of the Obama and Bush administration’s efforts to develop mortgage solutions designed to stem the increasing number of home foreclosures in the United States.

****Also, Appraisal Logistics, a compliance risk management firm, named Dennis H. Ashcroft vice president, sales and marketing. In this position, Ashcroft oversees Appraisal Logistics’ business and sales strategy, marketing efforts and growth initiatives. He serves as the foremost expert on all ongoing sales initiatives within the company, as well as oversees the customer experience for the company’s nationwide client base and appraisal network.

****With nearly 30 years of experience in the financial industry, including co-founding and managing a federal credit union, Ashcroft brings a unique perspective to Appraisal Logistics. His vision will play a key role in the company’s continued expansion in the bank, credit union and mortgage lending market.

****Lastly, Axis Appraisal Management Solutions announced the addition of Janice Bezou, SRA, as the Director of Vendor Management and Lender Services. Ms. Bezou brings more than 25 years of appraisal management as well as asset and risk management experience to Axis. She spent more than 16 years with a top tier national bank, managing residential appraisal departments and assisting in corporate valuation risk management. She was also Chief Appraiser for Service Link, Fidelity’s National Lending platform. Ms. Bezou was most recently Director of Appraisal Services for Bay Equity Home Loans in San Francisco. She holds the SRA designation from the Appraisal Institute and is a Certified Appraiser in California.

****Why was Ms. Bezou and the other executives mentioned hired? “Axis is entering a new phase in its level and range of services for our lender partners and Ms. Bezou’s deep background in risk management, reo decision making, repurchase negotiations, and extensive industry- wide relationships assures our clients of the gold standard within the suite of new services they can anticipate from Axis,” answered Michael Simmons, SVP of Business Development. “In addition, our expectations of, and support for, our elite appraiser panel will flourish even further under Ms. Bezou’s tutelage.”

****Experience matters.

Market Analysis: Innovative Companies Continue To Thrive

*Innovative Companies Continue To  Thrive*
**By Tony Garritano**

***We are very fortunate to have Steve Horne of Wingspan Portfolio Advisors, a Dallas-based diversified servicing company, on our board. He is a true visionary. As such, PROGRESS has learned that Wingspan under his leadership continues its accelerating growth offering a wide range of services to assist the mortgage industry in virtually every aspect of delinquent loan servicing. In addition to launching four new subsidiaries over the past 12 months, Wingspan has quadrupled its number of employees and has leased a second building to meet the needs of its clients, which include banks, investors, mortgage insurers and real estate agents throughout the U.S.

****“Wingspan’s phenomenal growth is driven by our team’s ability to deliver customized solutions to lenders, investors and mortgage insurers impacted by the challenges in our economy,” states Wingspan CEO and President Steve Horne. “Our clients are extremely pleased with the innovative results we deliver and the experience that comes from a senior management team with more than 250 years in this business.”

****Today, Wingspan employs more than 1,400 people and is the sole occupant of the 134,000-square-foot, two-story office building located on the Dallas North Tollway near Frankford in Dallas. The company has quadrupled the number of people it employs since this time last year. Wingspan’s new building is situated minutes away from its corporate headquarters in Carrollton, TX. The company’s current business units include:

****Wingspan Portfolio Advisors: offers special servicing, component servicing, capital markets services;

****Wingspan Information Technology:  provides information technology consulting and application development services to clients featuring 21st century technological solutions used by Wingspan;

****Wingspan Real Estate Network: WREN, Wingspan’s licensed real estate broker affiliate and proprietary nationwide network of real estate agents, specializing in accelerated short sale facilitation;

****Wingspan Professional Services: offers escalated customer complaint resolution, servicer oversight and file/claim review, outsourced “back office” process solutions, consent order compliance, as well as staffing services for both internal and external clients;

****Wingspan Insurance Services: provides insurance products that make sense for stakeholders and borrowers alike;

**** Wingspan’s consumer-facing website advancing financial literacy for borrowers through no-cost information and dialog with industry experts.

****Much of Wingspan’s growth is due to its expertise working with delinquent borrowers and its ability to find alternatives to foreclosure, thereby restoring value to those loans and reducing REO properties. Wingspan’s loan resolution specialists are skilled at listening to borrowers, understanding their issues and moving quickly towards a positive outcome wherever possible, providing a high-touch approach that primary servicers are hard pressed to offer.

****“Spending lots of time talking to borrowers is not typically something the primary servicers are able to do, based on their basic business models and compensation structures,” Horne observes. “But it’s precisely what we do, and that fits perfectly with the requirements of getting consumer issues resolved.”

****The demand for conflict resolution services has risen dramatically, and it is one of many areas that have propelled Wingspan’s growth. “When dealing with highly sensitive customer matters, outsource assistance needs to be extremely experienced in high-touch, often emotionally charged situations,” states Jason Dickard, Wingspan’s executive vice president of professional services. “Complaints, for example, have often been pushed up the management chain through the legal department, and servicers want them finalized with the best possible result. We’re positioned to work with everyone involved to achieve resolution, once and for all.

****“This business is constantly evolving and changing,” continues Dickard. “As our clients juggle limited resources with additional regulations, they know we can provide them with a wide variety of services they need, from customer complaint resolution to forensic file review.”

****Horne notes that Wingspan’s growth as a “one-stop trusted source” for all special servicing needs has been made easier by the company’s location. “We have a tremendous talent pool here in Dallas, the epicenter for loan servicing, which allows us to recruit, train and deploy very quickly,” adds Horne. “Experienced employees, advanced technology and a broad range of services are helping us to capture every opportunity that comes our way.”