What do hurricanes, ransomware, and pandemics have in common? They all illustrate the need for businesses to plan for emergencies. For those who process receivables, an important part of being prepared for anything is having a backup servicing plan in place in case your own personnel or primary outside servicer are unable to fulfill their roles.
Backup servicing is one of the many loan servicing solutions provided by Concord, a leading provider of payment solutions and financial technology for vacation ownership, residential solar, energy services, and home improvement industries.
It works like this. When there is a triggering event, such as a natural disaster or a data breach, our backup servicing clients can rest easy, knowing that Concord is there to ensure that their portfolio performance continues at current levels. Putting a plan in place is simple, and once everything is set up, we’re invisible to our clients unless there is an issue where we can be of assistance.
Concord’s backup servicing plans are not one-size-fits-all. They are customized to each client’s needs, offering options like “hot,” “warm,” or “cold” servicing, which denotes the time required for Concord to assume the duties of a previous servicer. In all cases, Concord will work with your organization to design the best transfer protocol, standardize file formats, and run mock conversions of your files to validate data, train and prepare our staff on the program, and periodically receive trial downloads to compare and balance with the primary servicer. If a triggering event occurs, Concord will provide a seamless transition to servicing your loans in a live environment.
In addition to being a smart and proactive business strategy, there is a growing demand by rating agencies, originators and investors for such plans to mitigate the risk of a disruption to the servicing of loan portfolios. “When loans are secured by accounts payable receivables, we require clients to have backup servicing plans in place,” says the president of a prominent lender. “Natural disasters, cybersecurity issues, and even pandemics can affect any company.”
At Concord, we are not just a service provider, we are a partner in your success. We are committed to providing best-in-class services and technology to our clients. We continually invest in our staff, technology and systems, which allows us to deliver outstanding client support while providing a wide range of services and products at a compelling fee structure. As a leading loan servicer with more than 30 years of experience, our team is dedicated to the stability and continuity of your loan operations. To learn more about Concord’s backup servicing options, contact us today at (866) 493-6393 or bd@concordservicing.com.
