DS News - U.S. Bank

68 nurtured and new vendors are held to quality standards early to build and maintain a reliable, knowledgeable network. Second, there must be consistency in service expectations and results. Consistency in communication, clarity of roles and responsibilities, training, performance expectations and performance scoring can build confidence in internal staff, the network, and the clients that depend on them. Finally, because regulations are creating the need for new services and expanded roles within the industry, the processing of data and corrective actions must be accomplished efficiently. Technology provides that efficiency, along with continuous oversight of vendor activities which is essential to maintaining a successful, compliance-driven vendor management team. is approach not only allows vendor management teams to help their clients reduce business risk and minimize loss by investors, it is part of a collective industry goal toward achieving community stabilization. rough effective vendor management programs, loan servicers are able to contribute to the communities they service by maintaining vacant and abandoned properties that promote safer neighborhoods and protect against blight. roughout the mortgage servicing supply chain, industry professionals are responding to internal and external demands by taking a more robust and layered approach to the management of vendor networks. e depth of inquiry into a vendor's background, business history, and qualifications is at the core of maintaining a trusted vendor network but is only the beginning. A standard, consistent process for on-boarding vendors (and off-boarding), evaluating and reporting on their performance, managing incidents, and providing on-going training are also of key importance. is work can, at times, seem monumental. However, vendor management strategies are more often relying on technology to help recruit, vet, and monitor the activities of their vendor networks. KNOW YOUR VENDORS Vendor networks can be described as independent businesses working to achieve common goals for mutual clients. Yet a vendor managers' relationship with contractors can also be seen as a partnership that requires communication, documentation, agreed service expectations, and coaching. Vendor managers utilize well-tested vetting and recruitment processes to ensure the integrity of their vendor network. ese methods include completing industry-approved background checks, validating professional licenses and insurance, in-depth reviews of business references and checking the viability of a prospective vendors' business. To maintain a qualified network, both loan servicers and field services providers are committed to the meticulous screening of potential vendors and the continuous monitoring of the supply chain performance and relationships. With the quality of both administrative and field services work under scrutiny by regulators and municipalities, vendor management teams must ensure that the expertise of their vendors is commensurate with the current level of risk and complexity challenging the industry. e impact of executing a rigorous vetting process and conducting due diligence prior to contracting work to a third-party goes beyond mitigating business risk. Selecting qualified vendors, and documenting exactly what they will do, play an important role in maintaining the stability of the communities in which work is performed. Vendor management programs must include strong quality controls, audit infrastructure, monitoring systems and performance improvement plans in order to resolve issues and promote industry best practices. e industry is incorporating technology platforms that offer vendor management teams the stability, consistency and efficiency needed to manage required vendor data. EXPANDED SERVICES AND STANDARDIZATION IN A CHANGING COMPLIANCE ENVIRONMENT e regulatory environment has driven an expansion of vendor and operational services as industry organizations look to stay ahead of compliance measures. is sets in motion a corresponding need for all businesses in the supply chain to develop new strategies to ensure their networks stay stable, consistent and efficient. Field services providers, and other third-party suppliers, are utilizing technology to establish standardized business processes that satisfy both regulatory and client requirements while maintaining the effectiveness of their vendor network. Property inspectors and contractors are increasingly being asked to provide reporting on expanded services such as providing insurance loss estimates, conducting utility inspections, and providing structural assessments. ese new service requests are prompting vendor management departments to re-evaluate the necessary qualifications of their vendor networks and how they establish that the person at the property has those qualifications. An emphasis on documenting the licensing or certifications required to perform expanded services creates another layer of responsibility for vendor management teams and their networks. All levels of the supply chain are developing business requirements to meet expanding service requests. More often, they are finding cost- effective solutions in new technology. Evolving regulatory guidelines from agencies including the Consumer Protection Finance Bureau (CFPB), the Office of the Comptroller TECHNOLOGY IS HELPING MEET THE NEEDS OF VENDOR MANAGEMENT PROFESSIONALS ACROSS THE MORTGAGE SERVICING INDUSTRY FROM RECRUITMENT TO ISSUE RESOLUTION.

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