Learn from the largest subservicer how best to evaluate and select the right subservicing partner for your credit union based on your portfolio, investor mix, product range and other key selection factors.

1. Presented by: DOVENMUEHLE MORTGAGE August 27, 2014
DOVENMUEHLE
Keys to Subservicer Evaluation and Selection

2. Keys to Subservicer Evaluation and Selection
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Corporate Structure
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Credit Union Experience & Client Base
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Costs and Fees
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Performance Management
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Key Mortgage Servicing Systems
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Systems Integration Requirements
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Common Pitfalls DOVENMUEHLE

3. Corporate Structure
Ownership & Management
Financial Strength
Focus on Subservicing
Servicing Systems & Facilities
BEST IN CLASS
SUBSERVICER
Keys to Subservicer Evaluation and Selection
DOVENMUEHLE

4. Corporate Structure
Ownership & Management
Financial Strength
Focus on Subservicing
Servicing Systems & Facilities
Credit Union Experience
Similar Clients - size and portfolio mix
Member Service Excellence
NAFCU Preferred Partner
BBB Accreditation and Rating
BEST IN CLASS SUBSERVICER
Keys to Subservicer Evaluation and Selection
DOVENMUEHLE

5. Corporate Structure
Ownership & Management
Financial Strength
Focus on Subservicing
Servicing Systems & Facilities
Credit Union Experience
Similar Clients - size and portfolio mix
Member Service Excellence
NAFCU Preferred Partner
BBB Accreditation and Rating
Costs and Fees Start-up Costs
Base Monthly Fees
Delinquency and Default Charges
Special Reports and Data Files
Other Costs and Fees
Monthly “All-In” Cost Projection
BEST IN CLASS
SUBSERVICER
Keys to Subservicer Evaluation and Selection
DOVENMUEHLE

6. Corporate Structure
Ownership & Management
Financial Strength
Focus on Subservicing
Servicing Systems & Facilities
Credit Union Experience
Similar Clients - size and portfolio mix
Member Service Excellence
NAFCU Preferred Partner
BBB Accreditation and Rating
Costs and Fees Start-up Costs
Base Monthly Fees
Delinquency and Default Charges
Special Reports and Data Files
Other Costs
Monthly “All-In” Cost Projection
Performance Management Service Level Agreements (SLAs)
Account Management
Vendor Oversight Support
Partnership Initiatives
BEST IN CLASS
SUBSERVICER
Keys to Subservicer Evaluation and Selection
DOVENMUEHLE

7. KEY MORTGAGE SERVICING SYSTEMS
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Core servicing system
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Call center technologies:
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Voice Response Unit (VRU)
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Automated Dialing
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Digital Call Recording
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Mortgage Servicing Website
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Lockbox and check processing
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Treasury and cash management
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Tax and insurance tracking, disbursement and lender placement
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Loss mitigation system – waterfall, workflow, documentation, etc.
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Property inspections, maintenance and repair
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REO management and marketing
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Remote Inquiry System for client access and support
DOVENMUEHLE

8. SYSTEMS INTEGRATION REQUIREMENTS
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Loan Origination System (LOS)
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General Ledger (GL)
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Customer Information File (CIF)
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Home Banking System
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Branch Banking Environment
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Call Center Systems
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Data Warehouse
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Asset Liability Model
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FHLB Pledged Asset Reporting
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MSR Valuations
DOVENMUEHLE

9. COMMON PITFALLS
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No on-site visit to servicing facility or in-depth management interviews
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Focus on vendor proximity vs. qualifications and performance
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Subservicing “Best-in-Class” specialist vs. multi-service “All-in- One” vendors
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No designated Project Manager within credit union
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Lack of full internal support – IT, Accounting, Credit, Loan Operations, etc.
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Emphasis on vendor auditing (only) vs. full strategic partnership
DOVENMUEHLE

10. Contact Information David Allison Senior Vice President Dovenmuehle Mortgage, Inc. 847-550-7550 David.allison@dmicorp.com www.dovenmuehle.com
DOVENMUEHLE
SUBSERVICER EVALUATION FACTORS