SPOC was mandated by an OCC/Treasury directive on April 13, 2011, which required the 14 largest servicers to assign a human single point of contact (SPOC) for delinquent customers to contact in conjunction with their loan modification requests. The genesis of SPOC was the poor customer support delinquent mortgagors experienced when applying for a loan modification or other form of loan forbearance. Despite the new requirement, some servicers have taken a short-term approach by only hiring new staff without building a scalable default management operation to support them. We believe that new SPOC requirements-and mortgage servicing requirements introduced by Fannie Mae and Freddie Mac-are driving permanent changes to mortgage default and contact center operations that financial institutions need to make more efficient through increased technology investment.
Our latest research analyzes the people, process and technology impacts of new mortgage servicing requirements and recommends key actions financial institutions need to undertake to meet the new requirements and to leverage their technology investments to improve financial performance in both the mortgage servicing division and in other areas that can leverage better customer experience technology. A few key takeaways:
- SPOCs need to be customer relationship managers, manage processes and timelines, and own the customer relationship and loan asset.
- Servicers need to redefine and add new performance metrics, and change return on investment (ROI) analysis to include financial gains to operationally defined ROI.
- A second phase of SPOC implementation requires 1) new contact center systems and (2) data and document management system integration and workflow to support the human SPOC with a “technology SPOC” that connects all staff and processes.
To learn more, access our research presentation, Single Point of Contact in Mortgage Servicing Industry Market Drivers, Servicer Strategies and IT Solutions.