We have a formula to make loan onboarding problem free
Some say that boarding loans is as challenging as changing the tires on a car that is moving at 65 miles per hour. While loan boarding projects can be complex and require close coordination of activities, many problems can be addressed and resolved before the boarding process begins.

At BSI Financial Services, we believe that problem-free loan boarding hinges on three things: a skilled team of loan boarding specialists; the use of cloud computing technology, and a well-documented statement of work.

An experienced onboarding team

The loan boarding team consists of specialists knowledgeable in all aspects of loan servicing, and who have demonstrated the ability to calibrate internal procedures to ensure successful loan servicing transfers. With each loan boarding project we complete, we review and optimize our processes and seek ways to better balance the use of people and technology. This requires extraordinary attention to detail and a commitment to document business practices to ensure that the next project is accomplished faster and more efficiently.

Our on-boarding specialists are experienced and well-trained.

Enabling cloud computing technology

We work in the cloud because it is more efficient and we can complete tasks faster and with fewer people. It also allows us to leverage our global workforce to complete specialized tasks, audit loans and onboarding processes and optimize our loan servicing platform to meet client needs. With cloud computing, loan boarding can be an around-the-clock activity, shortening the boarding process by a matter of days and ensuring that the transition will be a smooth one for servicing clients, investors and borrowers.

A thorough statement of work

Prior to beginning the onboarding process, we take a client through a detailed statement of work that addresses five areas: details of the loans being boarded; responsibilities of the parties; client strategies; investor reporting, and any special requirements the client may have.

Details of the loan being boarded

This includes a deep-dive into the specifics of the loans: whether they are current or in default; if and how they are insured and by what company or agency; whether any loans are in HAMP, HAFA or 2MP (which affects the eligibility of the entire portfolio); delinquency information and current escrow practices.

In addition to understanding the nuances of the loans being boarded, we want to ensure that we comply with CFPB requirements for loan treatment and borrower notification.

Responsibilities of the parties

At the outset of the relationship we establish who is responsible for what activity, including borrower notifications, 404 notices and demand letters, and insurance tracking. This is important from both a liability standpoint, and to coordinate communication and reporting so that we are in compliance with all applicable policies and regulations.

Understanding client strategies

Understanding how our clients want to manage their assets helps us optimize the servicing environment and all supported business processes. We document loss mitigation strategies, credit and tax reporting requirements, insurance tracking and even the handling of any REO property that may be associated with the servicing pool.

This exercise of internalizing client strategies helps us establish a framework for handling future processes as clients add to their portfolio.

Investor reporting

This is a critical area because it speaks to two important areas of our relationship: compliance and transparency. In addition to establishing cut-off dates for investor reporting of remittances and balances, we identify all special reports needed and on what level of frequency. We also identify individuals who will have access to the loan servicing platform and arrange for training, which is typically completed within two weeks of loan boarding.

Other needs

As thorough as the statement of work is, we invariably identify special needs and requests to support our clients. These can involve reporting and tracking, loan special handling or service-level responsiveness. Being able to accommodate these needs helps us achieve our vision as a loan services provide:
    “We partner with our clients to maximize the ease of doing business and return on their investment by producing the highest value while minimizing risk and expenses.”