The document outlines a vision and goals for a servicing oversight role to support adherence to uniform national mortgage servicing standards. It discusses analyzing a servicer's capabilities in areas like compliance, policies/procedures, IT controls, staffing, and oversight of third party providers. Today's situation involves ensuring contractual agreements outline obligations and remedies, and receiving monthly reporting packages. Opportunities include monitoring governance, staffing, and quality control processes. The recommended approach includes relationship management, monthly report receipt/review, business intelligence dashboards, loan level loss analysis, and access to servicer systems.

1. Servicing Oversight –
Recommending a Strategy
Ideas for Today and Tomorrow
Presented by Debra Gaveglio

2. Vision Statement
The Servicing Oversight role is an essential
function to support the adherence to the
uniform national mortgage-servicing and
loss mitigation standards that would apply
to all servicers. A comprehensive
Servicing Oversight process protects the
interests of the servicer of record, the
investor, the insurers, the regulators and
the borrowers.

3. Goal and Objectives
Servicing Oversight should analyze and monitor the servicer’s
capabilities in the following focus areas:
 Credit Loss, Risk and Fraud Management
 Compliance and Regulatory Requirements
 Policies, Procedure and Process Controls
 Centralization of Corporate Data and IT Data Controls
 Organization Structure, Staffing and Training
 Management of third party service providers
 Quality Control, internal self assessment and external audits
 Loss Mitigation Procedures and Workflow Maintenance
 Financial Accounting and Cash Control
 Investor Reporting
 Critical Documentation Management
 Business Continuity Plan

4. Today’s Situation
Servicing Oversight plays an important role in insuring the
implementation of clearly defined governing rules for industry
standard prudent Mortgage Servicing, Loss Mitigation and Investor
Reporting
 Contractual Agreements should outline applicable Obligations,
Fees, Costs, Benefits, Breach Events, Representations, Warranties
and Remedies
• Servicing and Subservicing
• Custodial/Collateral
• Vendor Management
• Trustees
 Monthly Remittance and Investor Reporting Package including
income fees and costs, credit loss, loss mitigation workouts and
delinquency data and Management Dashboard Summary Reports

5. How Do We Get Here?
 Servicing Oversight analyzes and monitors the Servicer, Third
Party and Vendor Activities to insure the appropriate controls are
maintained. Some of these include:
• Taxes and Insurance
• Outsourced Servicing Functions
• Payment Processing
• Escrow and Cash Control
• Collections
• Legal Document Custodians
• MERS
• Credit Bureaus
• Legal firms
• Loss Mitigation
• Liquidations
• Flood, Force Placed Hazard and Mortgage Insurers

6. Opportunities
 Servicing Oversight monitors Servicing, Collections and Loss
Mitigation Governance
• Industry Comparative Data for Trending default Statistical
Analysis
• Dual Tracking of borrower workouts occurring simultaneously
• Borrower Communication Procedures including solicitations
• Quality Control and Due Diligence Processes
 Staffing
• Capacity Modeling
• Workload Management
• File to Representative ratio
• Training Programs

7. Recommended Servicing
Oversight Approach
 Relationship Management - Dedicated Servicing Oversight Point of
Contact
 Monthly Remittance Package Receipt and Review Schedule
 Business Intelligence Dashboard & Management Summary Reports
 Loan level Loss Analysis with applicable Remedy and Recourse
Plan
 Access to Servicer Workflow Management System (SharePoint;
CRM platforms)
 Contingency Plan for Ongoing Regulatory Changes
 Reasonable access to Books/Records
 Fraud and Risk Management Plan