Altisource Servicer Solutions

Page 9 and controls for disparate services such as inspection, repair, conveyance, title, valuation, marketing and auction to collectively help servicers decrease timelines associated with handoffs, decrease risks created by information flowing in silos and decrease oversight requirements by streamlining vendor activities. Vendor Technology Platform Most vendors offering CWCOT services do not offer clients a robust technology platform capable of accommodating client requirements and customized workflow to achieve optimal outcomes. Servicers should source specialized vendors offering both CWCOT services and the supporting technology as core competencies. A strong vendor partner should have a proven track record of implementing decision tree frameworks, rules-based decision engines and compliance controls as well as providing client access to the platforms. In addition to helping optimize the resolution, this structure supports proper exception reporting, service-level monitoring and transparency throughout the CWCOT process. Marketing and Auction Expertise An important driver of success for any CWCOT program strategy is the effectiveness of the auction vendor. In order to decrease reliance on conveyance and to accurately model risks, estimated sales proceeds and costs in the decision tree framework, servicers need high- performing auction partners with specialized expertise in marketing residential real estate. High- performing auction partners have a strong online presence with a solid user base, mature operations, dedicated marketing teams to manage search engine optimization (SEO) and search engine marketing (SEM), paid premium placement advertising, active social media and email and syndication campaigns. In addition to having a mature marketing platform, industry-leading auction vendors should consider aligning a portion of their fees to a successful outcome for the servicer. This alignment of risk and rewards should increase third-party sales because the servicer would be able to consider the potential vendor contributions in completing its NPV calculations in the decision tree framework earlier in the process to weigh the NPV for the claims and auction claims channels. Conclusion The FHA servicer faces challenges in assessing the trade-off between conveyance and auction disposition channels due to limited and changing information. Resolving these challenges requires a comprehensive approach that aligns data inputs, vendor services and technology with a controlled decision tree framework that models probable NPV outcomes and risks. As FHA loan volumes continue to increase, servicers will need more advanced strategies — such as the decision tree frameworks proposed — to optimize the disposition of CWCOT-eligible properties

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