May 20, 2020
The consumer finance industry has seen a significant increase in backup servicing agreements as investors and originators seek to mitigate risk in uncertain economic times.
These appointments serve as a contingency plan to ensure assets are protected and disruptions to servicing are minimized if an existing servicer fails to meet their obligations or becomes insolvent.
Disruptions to servicing can create a multitude of issues from decreased cash flows and increased consumer complaints to breach of service level agreements and other regulatory disputes.
Reach out to our team here to learn how backup servicing can help protect your investment or to schedule a demo of our servicing platform.