DSC Tech Library
Organizations looking for outbound and inbound telemarketing services can outsource their IVR and affordable telemarketing center. As designers of Interactive Voice Response IVR systems and Voice Broadcasting software, Database Systems Corp. (DSC) is uniquely positioned to manage your outsourcing programs saving your company both time and money. Because our products are created in-house, we can deliver comprehensive telemarketing services quickly -- providing you with a competitive advantage in the marketplace. Plus you will find our inbound and outbound telemarketing outsourcing services to be quite affordable.
The following is an article relating to the telemarketing industry including products and services in our business areas.
"Best Practices" for Subprime Lending
MBA members endorsing these "Best Practices" agree to conduct their business according to standards outlined below. These standards are meant to serve as guidelines by which our members will meet their business goals and objectives while providing fair and equitable treatment to consumers. To ensure compliance, members who adopt these best practices also agree to annual self-certifications with verification by credible independent third parties.
Mortgage Bankers Association (MBA)
I. General Standards of Conduct
Compliance
Members will establish internal policies and procedures designed to provide senior management with a method to assess compliance with best practices, while also providing a prompt feedback mechanism. Upon discovery, members will take appropriate and immediate actions to rectify any problems, failures to comply, or deficiencies.
Members will comply with all applicable state and federal laws and regulations, including, but not limited to:
- Equal Credit Opportunity Act
- Fair Housing Act
- Fair Credit Reporting Act
- Truth in Lending Act
- Real Estate Settlement Procedures Act
Training
Members will establish and support professional training on fair lending laws for all operational areas of the company. Operational areas will include origination, servicing, information technology, and internal control departmental policies and procedures and internal control departments within the company. Training will consist of company operating policies and procedures, departmental policies and procedures, and internal/external computer system(s) training, as applicable. Additionally, members will communicate and support company training procedures and guidelines to brokers, correspondents, vendors, and other parties with whom the company conducts business.
Equitable Treatment
Members shall maintain a work environment that encourages compliance with these fair lending and consumer best practices that facilitates the fair and suitable treatment of consumers. Members will establish procedures and a corrective feedback mechanism designed to identify and, if necessary, address issues of equitable consumer treatment. Consumers will be treated fairly by each member regardless of race, color, gender, marital status, familial status, immigration status, sexual orientation, religion, disability, or national origin.
Violations/Retaliation
Members will encourage every employee to report to senior management violations of these best practices and/or questionable activities in accordance with company procedures. In addition, no employee will be subject to disciplinary or retaliatory action for a good-faith reporting of a suspected violation of these guidelines.
II. Internal/External Review
(Quality Control, Data, Integrity, and Due Diligence)
Members will review, on a periodic basis, random samples of loan files to determine compliance with Best Practices guidelines. Additionally, members will determine (via a review process) compliance with these guidelines at each department level within the company. Members recommend the use of techniques such as "mystery shopping," post-application customer interviews, and other appropriate measurement tools to assist in the compliance evaluation and enforcement process. Members shall support their internal review process either internally or through third parties for all origination processes.
III. III. Origination Standards
(Marketing, Underwriting and Closing)
Pricing
Loan products shall be provided to consumers in a non-discriminatory manner. Members that adopt and apply a "risk based" loan pricing policy must assure that it does not discriminate on a prohibited basis against any consumer. Borrowers should be offered loan options commensurate with their qualifications, and such options and their costs should be clearly explained. If members offer loans with and without prepayment penalties, borrowers should be advised of both products and the benefits associated with each product – with an emphasis on financial benefit.
Advertising and Marketing
Members will create and/or review all advertising and marketing materials to assure compliance with federal, state, and local laws. Advertise product mix in all areas in which business is contemplated. Clearly identify exclusions, limitations, and conditions in all advertising and marketing materials.
Consumer Education
Members shall provide prospective borrowers during the loan application process with information and materials explaining the benefits, obligations, and risks of borrowing against one’s home. As applicable, members shall support branch/correspondent activities by providing said information and materials.
Counseling
Members shall support properly sanctioned consumer counseling services programs by advising applicants of the availability of the toll-free number of counseling services in their locale.
Appraisal and Valuations
Members shall establish and implement policies and procedures regarding the appraisal or valuation of properties securing loans to the consumer. Included in such policies and procedures are provisions for appraiser approval and acceptable valuation data and data sources.
IV. Servicing Standards
(Servicing, Collections, and Loss Mitigation)
Payment Processing
Members shall maintain reasonable and ethical payment receipt and processing practices. Provisions for handling of cash payments (bonding requirements), clearing of checks, application priority ("spread") of payments, and the handling of unapplied monies shall be governed by the loan terms, applicable law, and by industry practices.
Collections
Members shall establish and disclose reasonable ethical debt collection practices in accordance with applicable law. Identify appropriate telephonic and written correspondence methods and timing requirements, assess collector account caseload tolerances, provide appropriate system support, and enlist vendors/services to round out the collection capability as applicable. Provide training with regard to treating delinquent borrowers in a respectful, business-like manner. Monitor delinquent accounts in an effort to minimize serious defaults. Provide information for collectors to discuss alternative borrower payment resources to prevent/reduce delinquency (e.g., 401K).
Customer Service
Members shall establish and implement policies and procedures regarding the handling and treatment of the borrower. Provide training for personnel in the handling of borrower information requests (i.e., 1098s, escrow data, and interest rate adjustments), disputes, and complaints. Follow-up on all such activities promptly and in good faith to obtain a resolution and borrower satisfaction.
Loss Mitigation
Members shall establish and implement policies and procedures regarding delinquent borrowers. Members shall provide training to all appropriate staff regarding the use of loss mitigation techniques. Member management and staff will seek to help borrowers to return to a current status. Obtain all available borrower information updates to perform file reviews and assess loss mitigation opportunities. Provide all notices to the borrower on a timely basis. Advise of third party counseling services to assist in the borrower’s default management process.
Reporting to Credit Bureaus
Members shall report favorable and unfavorable credit information on consumers to nationally recognized consumer credit reporting agencies on a monthly basis.
Mortgage Software Application
Database Systems Corp. has developed a mortgage software application for mortgage qualification and prospect lead tracking. This application is completely integrated with our phone systems which can perform both inbound and outbound mortgage marketing campaigns. Our mortgage processing application was developed using TELEMATION, our award winning contact management software application toolkit. This CRM software tool is ideally suited for processing mortgage loans and managing customer information.
This CRM application is employed in a wide variety of organizations including contact centers, help desks, customer service centers, service bureaus, reservation centers and corporate call centers.
Our mortgage marketing software has extensive computer telephony features and is fully integrated with our marketing autodialer and phone system. TELEMATION operates on Linux, Unix or Windows servers. Mortgage applications can be quickly tailored to your mortgage business using the robost features found in our mortgage software toolkit.
Mortgage companies such as Chase Manhattan Mortgage Corporation have relied upon TELEMATION to handle their mortgage processing requirements.
To view how other businesses and organizations are using this mortgage software application, please visit our Mortgage Application web page.
Contact DSC to learn more about our mortgage software applications and phone systems.
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