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How Shaw Software Helps Lenders with Repossession: Remarketing
In this edition of Shaw's blog, we will examine how our software helps lenders with the remarketing process of repossession. This is the last post in a series that details how Shaw's software helps lenders with the repossession process. Read the other three blog posts in the series:Lenders can become less effective in the remarketing phase when they have many accounts in any stage of the repossession lifecycle.
Understanding the most cost-effective auction to send a particular vehicle requires a lot of data and analysis. Finalizing the cancellation of outstanding warranties and insurance products that are added to loans requires a lot of tracking. And notifying borrowers of their rights throughout the process requires a lot of planning.
For lenders with increasing volumes of repossession, the existing technology may not be adequate to manage remarketing effectively, resulting in increased costs. The lack of technology creates a disproportionate cost increase unnecessarily because it is in repossession. The whole repossession process, including remarketing, often requires an enormous dedication of resources to a small fraction of the accounts a lender services.
Despite their best effort, many lenders will not remain compliant with requirements around borrower communication. Lenders begin to lose track of all the accounting requirements that come with properly reporting a complete deficiency balance.
Spectrum provides robust features that allow automation of many of these critical requirements. Utilizing remarketing workflows, lenders can ensure each step in the remarketing process is complete before moving on to the next phase. This requires proper tracking of where collateral is located, what the minimum bid could be, and what the auction's proceeds were.
Next, Spectrum workflow can ensure the proper cancellation of outstanding warranty and insurance products and automate all the associated accounting. Spectrum’s workflow architecture allows lenders to determine which pieces of information are required before users can move to the next task in a workflow. The imbedded reporting and robust queuing design give lenders the transparency required to understand which tasks are creating delays and bottlenecks in the process. Finally, the automation of the required deficiency letter can be sent to the borrower. If your organization is in the position of performing these accounting tasks manually, you are not alone. Throughout the repossession lifecycle, you have to work with a series of vendors performing different tasks. Information may be coming in at substantially different times due to the nature of the supply chains involved.
Our Spectrum platform helps clients automate their accounting process and stay compliant with reporting requirements. The remarketing department once had undocumented processes on top of documented processes to do their job properly. Now they have all the information they need in a single system. All the associated information related to a repossession case can be made available in any format required. Counsel going to court may need information in a different format than an associate in the treasury or servicing department.
Remarketing repossessions is an important and complex job. Shaw can help provide the solution you need to make your job easier. If you are interested in learning more about Shaw’s Spectrum loan servicing software, please email us at solutions@shawsystems.com.