Three Cost-Saving Ways Servicers are Using Workflow Automation

There’s an old saying that the first step is often the hardest. For many mortgage servicers, the idea of workflow automation sounds both appealing and overwhelming at the same time. They recognize the inefficiencies within their current processes and know that modernization is needed, but the path to automation isn’t always clear. Where do we start? What will automation look like in my organization? And how do we know that workflow automation will simplify our operations and not complicate them further?

We often hear questions like this when speaking with potential clients. That’s why we want to share three real-world scenarios from servicers currently using CLARIFIRE® to automate complex processes, streamline communications, and reduce operational cycle times. These examples reveal what’s possible and the benefits achievable when workflow automation is embedded directly into your servicing operations.

Generating Trial Modification Letters

Servicers are required to send a Trial Modification Letter and an Evaluation Notice to borrowers seeking a Modification workout option where a trial plan is needed.  Each letter requires various data elements derived from trial plan calculations as well as borrower contact information and workflow dates. Instead of manually entering the same loan data into a letter template, servicers can leverage CLARIFIRE® workflow to automatically generate Trial Modification and Evaluation Notice letters and eliminate manual letter creation. A once very manual process is reduced to just one click. 

How It Works:

Once trial terms are structured in the CLARIFIRE CALCULATOR and approvals are complete, the system generates all required letters automatically. They are populated with accurate calculation results and borrower information. Letters are saved to the loan file, creating a complete audit trail, and can be delivered directly to the servicer or to third-party print vendors through automated batch processing.

Benefits Achieved:

• Reduced potential for human errors by eliminating manual entry of data into document templates.
• Decreased cycle time for delivering approved Trial Modification Letters to the borrower. A 30-minute, manual letter creation per loan becomes a quick button click.
• Automates bulk creation of letters to servicers, so that servicers can streamline letter print mailings internally or in coordination with 3rd party print vendors.

Streamlining Foreclosure Activities and Attorney Collaboration

 Servicers and attorney firms both participate in Foreclosure activities for applicable delinquent mortgages. Numerous hand-offs, including communications, figures/fees/costs requests, document generation, re-projections, and more, occur throughout foreclosure activities. Those activities often need to be handled in a specific order and documented for visibility, audit trail, and reporting purposes. Servicers leverage CLARIFIRE® workflow to initiate a Foreclosure referral and interact directly with attorney firms, all in one system. 

How It Works:

CLARIFIRE centralizes and automates the entire foreclosure referral and monitoring process. Servicers initiate a referral, and attorneys accept it via the CLARIFIRE dashboard. Dashboards are real-time for both the servicers and attorneys. No emails are needed. They then follow a guided workflow that manages title orders, valuations, and other required steps. Both sides can trigger ad hoc requests, share documents, and communicate through notes directly within the workflow. The CLARIFIRE business rules add the required controls by automatically starting and stopping the processes based on the scenario, such as a bankruptcy filed or a loss mitigation applied for. Visibility from the dashboards provides alerts and risk mitigation actions that are easily managed.

Benefits Achieved:

• Automated communication and hand-offs between attorney firms and servicer foreclosure teams within one system, eliminating the need for emails and phone calls.
• Increased visibility into the foreclosure process and next steps. Servicer and attorney users can collectively view dates, deadlines, and statuses of foreclosure milestones, including insight into loan-specific data entered.
• Eliminated wasted time with exception management front and center on the dashboards.
• Uploaded foreclosure documents by either party can be shared and reviewed within loan workflows.
• Reduced overall cycle time of end-to-end Foreclosure activities by easing coordination of data and document requests and providing one-click hand-offs between servicer and attorney firms.
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Automating Exception Management with GSEs

For servicers with GSE loans, exception reviews are a critical part of ensuring borrowers receive the right workout solutions. Today’s GSE integrations create opportunities for servicers to streamline exception management and move faster with greater accuracy. With CLARIFIRE, servicers are able to take full advantage of these capabilities and advance automation with true straight-through processing that drives efficiency, consistency, and visibility across the entire review process.

How It Works:

Servicers enter or import workout data into CLARIFIRE CALCULATOR™, the workout engine, and if an exception is required, the workflow automatically triggers submission to Resolve. No duplicate data entry or manual uploads are needed. CLARIFIRE continuously pings Resolve for status updates and alerts the user automatically when Freddie Mac approves the exception or needs additional information.

Benefits Achieved:

• Reduced potential for human errors by eliminating manual data entry.
• Automated submission and status retrieval of exception requests for faster processing times and increased visibility
• Removing the need to work in multiple systems with end-to-end exception handling in one application.

Ready to Take That First Step?

You no longer need to wonder where automation will fit within your organization. Here are three different scenarios with one clear message – automation is already reshaping servicing operations. Today, the question isn't whether automation can help your organization, but how soon you want to experience the benefits. If you're considering incorporating workflow automation into your processes but aren't sure where to begin, we can help you map out the possibilities. Contact Clarifire today to schedule a demo and see firsthand how CLARIFIRE can simplify and automate complexity, accelerate results, and modernize your servicing ecosystem.

To schedule a demo, visit our website, or follow us on LinkedIn and X.

 

Jane Mason | @janemasonceo

Jane has applied her vast experience (over 25 years) operating process-driven businesses to successfully redefine client-focused service. Jane has worked with expert programmers to apply cutting-edge web-based technology to automate complex processes in industries such as Financial Services, Healthcare and enterprise workflow. Her vision confirms Clarifire's trajectory as a successful, scaling, Software-as-a-Service (SaaS) provider. A University of South Florida graduate, Jane has received many awards related to her entrepreneurial skills.

 

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