Quality Claims Management mitigates servicer risk in MI
Reliable reporting and transparent technology solutions are key
With the complexity of the current regulatory environment and the continuing losses suffered by investors, servicers find themselves under extraordinary pressure to do everything possible to reduce losses. Insurers are seeking opportunities to curtail reimbursements, investors are seeking compensatory fees or requiring repurchases from their servicing partners, and claims are under ever-increasing levels of scrutiny. To mitigate their exposure, servicers are looking for stable, reliable partners to navigate this maze with them.
Quality Claims, with its expertise, processes and technology, mitigates servicer risk across a spectrum of servicing functions. Though initially focused on hazard insurance recovery, Quality Claims leveraged its decades of servicing experience to develop a broad range of solutions, including the launching of its investor services group in 2010.
The company provides mortgage insurance (MI) claims services, including denial, rescission and repurchase management, as well as GSE and FHA post-sale claims services.
“We are very excited about the prospects for this group,” said Quality Claims Vice President Robert Hopson. “There is a demand for expert management of the investor claims and MI rescission dispute processes that provide reliable reporting and transparent technology solutions.” Servicers are finding their current servicing platforms inadequate to track investor reimbursement claims, while facing increased client demands for reporting and updated claim status information.
As the CFPB and other regulators increase servicer oversight, there is new focus on third-party risk. Quality Claims is committed to meeting regulatory and investor requirements at all levels by continually refining its internal controls and audits.
“Servicers take on additional risk in these relationships, so we take this seriously,” Hopson said. “We focus on well-documented procedures and change management, and ensure data protection and risk mitigation in our technology applications. We complete an annual SSAE 16 Type II audit, among others, to validate this. In addition, we encourage potential and current clients to ‘kick the tires’ at our office making sure they’re comfortable with our relationship and confident in the services we provide.”
The company offers highly customizable processes and focuses on consistent execution, compliance and customer service, Hopson said.
“Our reputation usually precedes us and initially gets servicers’ attention. We are able to demonstrate our technical expertise in all of the work we do.
“In addition to minimizing servicer losses, we receive praise for our solid controls, reliable and auditable reporting and the transparency of our processes and data,” he said. “We encourage our clients to audit their files and provide free access to our proprietary system so clients can view live, up-to-the-minute file status. Transparency is a cornerstone of all of our relationships.”
Quality Claims prides itself on its mortgage industry knowledge and its ability to handle a wide variety of processes and servicing support functions. “Servicers are continually faced with unique challenges and many times call on the expertise of our team to help them resolve daily issues, often tangential issues we bring to their attention. We also help design and implement new procedures to prevent recurrence,” said Hopson.
This expertise translates to reduced claim timelines, increased recoveries and improved tracking and reporting. Servicers also appreciate the company’s dedication to compliance with all licensing requirements and its commitment to operating independently of other companies providing services that have come under state and federal scrutiny for potential conflicts of interest.
“Our culture is one of passion and innovation. Our staff at all levels are passionate about being the best in the business and are empowered and encouraged to find creative new ways to develop enduring partnerships with our clients,” Hopson said. “Everyone gets to participate in building creative solutions and share in the rewards.”
In the near term, Quality Claims anticipates accelerated growth in its investor services group and in FHA hazard claims. The company continues to build key strategic partnerships to offer clients a broader range of services through a single vendor interface while staying focused on compliance with all regulators’ mandates. “With the extraordinary and complex vendor on-boarding and oversight requirements today, this is a bonus to our mutual clients,” Hopson said.
Rob Hopson, VP, Client Relations
Rob Hopson, CMS, is a 30-year mortgage servicing veteran. Prior to joining Quality Claims in 2009, Hopson held executive positions with GMAC Mortgage and several other major servicers. He brings expertise in default management, including hazard and investor claims, property preservation, REO, foreclosure and bankruptcy. His focus is on developing new products and managing client relations.