There is high trust factor involved when you work with different Master Servicers in different jurisdictions. It is very common in the industry to reach agreements with a “Skin in the Game” approach, where profits are shared once targeted internal rate of returns or recovery rates are achieved. Due to the complexity of running several operations, this can sometimes lead to situations where the Servicers are not controlled effectively or are not subject to any oversight at all.
Having regular Third Party Supplier Oversight Services by independent local experts working to international quality standards is paramount to minimize exposure to reputational risk, or breaches of compliance, conduct of business rules and data protection issues.
“Trusting without verifying” has led in the recent past to litigation, missed opportunities and negative reputational impact in the market.
Being proactive not only minimizes risk and potential liabilities, but can also help provide higher returns. In times where Servicers take on board large portfolios, you need to be sure that your investments do not get conflicted with other customers. We can help by providing either a full time dedicated person or periodical reviews by our team.
If you would like to find out how we can provide you with our Third Party Supplier Oversight Services with a collaborative and constructive approach with your Master Servicers please contact us.