BSI Financial Services: Delighting customers with specialized servicing
Lots of companies say they want to satisfy their customers, but BSI Financial Services elevates that idea to a whole other level, saying it wants to “delight” its lender clients and their borrowers. Delighting customers is a pretty high bar for any company, but for a due diligence firm in today’s compliance environment, it seems especially ambitious.
But Rose Yuhas, compliance auditor at BSI Financial, doesn’t even blink. “I don’t expect people to be delighted by an audit, but we’re their partner in quality control and their best resource for compliance,” she said. “When we help our customers eliminate the problems in their process, and they aren’t caught off guard with their investors, they can be delighted that they got that information from us and not Freddie or Fannie.”
Indeed, BSI Financial, which began as a lender but became exclusively a service provider in 2006, takes the current regulations in stride, seeing them as a welcome return to traditional underwriting standards.
“There are challenges in the new QM and ATR rule, but we’re happy to see the rules move the industry back to a safer, sounder lending process,” Yuhas said. “We’ve lived through historic times and we’ve all seen the dark side when there is unsafe lending. We saw portfolios that got back pennies on the dollar and houses that got sold. More reliable lending — that excites us.”
BSI Financial specializes in mortgage subservicing, default management, loss mitigation, due diligence, REO and quality control services. The outsourcing they provide to more than 240 lenders and investors is customized for each client, she said.
“This is not a cookie-cutter process because not every client is the same. The devil is in the details, but we know our clients and we make sure our audits are relevant to them,” Yuhas said. “Yes, there are the same QM/ ATR requirements for everyone, but not everyone is going to use the same format or process to address them.”
Yuhas sees BSI’s expertise in the area of due diligence and QC as some of the company’s most valuable services to clients, with specialized QC audits and post-close reviews.
“Quality control is going to be more important than ever, so we continue to enhance our technology and improve our office efficiencies, staffing up and focusing on training our staff,” she said. “We have a staff of auditors, underwriters, and compliance officers with significant industry experience, and we bring all of that experience to work for our clients.”
Utilizing technology to improve all of its client service areas is central to BSI’s vision, according to Julie Zygutis, senior vice president of loan review services. When BSI Financial saw Fannie Mae moving toward more standardized reporting, the company created a proprietary auditing system to address the kinds of reports and trending analysis Fannie was looking for. The BSI Client Asset Risk Evaluation System (BSI CARES) not only helps clients stay compliant with the GSEs, but also gives them important insight into their own practices.
“Now they can see information that helps them measure themselves,” Zygutis said. “They can drill down as much as possible in the categories they need.”
Yuhas agreed. “The client can look and say, out of my last audit, how many violations did I have in income, and what was it about the income — was it the way it was documented or analyzed? They will get some very nice reporting out of it.”
That attention to detail is necessary if clients are going to maintain their compliance over the long term, Yuhas said. “You can set up all these new processes, but if someone doesn’t go back and make sure it’s being done, what is it good for? We give our clients direct feedback to make sure they’re on track.”
BSI has also developed proprietary methodology for loss mitigation, featuring a comprehensive solution that bolsters borrower contact, increases loan workout ratios and fulfills investor requirements.
BSI Financial is markedly optimistic about the company’s role in the industry in 2014. “We have a real opportunity to set new standards for regulatory and investor responsiveness as the market shifts to favor companies that offer specialized servicing,” Yuhas said. “BSI has earned its name in the industry by consistently exceeding client expectations and being a true partner in our clients’ business plans.”
The 2014 Compliance All-Stars: