DecisionReady, a provider of default servicing compliance solutions, has announced the release of a vendor compliance management module for the DecisionReady Compliance Suite on its cloud-based technology platform. The DecisionReady platform module helps servicers manage vendor relationships that are critical to all aspects of default servicing. The latest enhancements to DecisionReady’s compliance technology address many of the weaknesses cited by federal regulators in the Interagency Review of Foreclosure Policies and Practices, the result of the regulators’ on-site reviews of foreclosure processing at 14 federally regulated mortgage servicers during the fourth quarter of 2010. In their reviews, federal regulators found that industrywide, servicers generally did not properly structure, carefully conduct, or prudently manage their third-party vendor relationships with outside law firms and other third-party foreclosure services providers. The failure to effectively manage third-party vendors resulted in increased reputational, legal, and financial risks to the servicers, the regulators found. The DecisionReady technology module implements a systemic approach for servicers to implement the regulator’s recommendations for better managing vendors. The approach delivers effective controls and oversight of the weaknesses found by regulators, including those associated with foreclosure attorney vendor management, one of the chief weaknesses identified. “Today’s mortgage servicers need to conduct ongoing evaluations of vendors using score cards. The newly launched vendor compliance management module allows servicers to review vendor activity and objectively score the vendor on accuracy, service level agreements, and process conformance”, said Matt Lichtner, DecisionReady’s executive vice president of sales and client relations. “It also helps servicers select vendors based on past vendor performance, rather than relying on a subjective vendor selection process.” The new module focuses on reviews of foreclosure and bankruptcy attorneys, as well as eviction processes. Future vendor compliance modules will include asset management, short sale transaction coordination, field inspections, and other third party outsourced services. The vendor compliance management module provides a framework for objective vendor selection, addresses key consent order focus areas, and allows representative sampling. The module quantifies results with scorecards customized for each vendor type and client. The result is unbiased and objective vendor selection and referral management. DecisionReady technology allows servicers to specify bank policies, investor guidelines, as well as state and federal requirements, in one centralized location. The rules are automatically enforced on each loan processed on the technology platform. “Our compliance suite has multiple modules that support specific default servicing processes, ensuring adherence to bank policies and guidelines,” said Tom Schmidt, DecisionReady’s chief financial officer. “In combination, the modules ensure that a robust, compliant and auditable end-to-to end default servicing process was followed. Multiple roles are supported to allow the servicer to perform quality control and internal audits to review the activity on loans." The maintenance of the rules and the underlying decisions can be administered through a comprehensive, intuitive Web-based interface. The Queue Management and Workflow tools, which allow the client to manage the operational aspects such as associate productivity, work prioritization and escalation processes, are also web-based and can be controlled in real-time.