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Special Servicing

By HML

The demand for a more sophisticated approach to credit management in the UK has been fuelled by the unprecedented developments in the mortgage market and the current economic climate in general.

The effectiveness of collections activity is not simply a function of the number of phone calls made. Having an approach that incorporates integrated data informing strategies at loan level is essential for effectively managing customers who may get into difficulty. Now, more than ever, you need to deliver a broad range of treatments to cope with the current market and beyond. As a pioneer of mortgage servicing in the UK, HML has extended its capabilities in order to ensure our clients have access to up to date, performance driven, dynamic end-to-end credit management services.

A special kind of service

"Special servicing" is a term used in the market to explain what is best described as a specialist credit management capability. HML's offering is an extension of our primary servicing proposition in the sense that it can work seamlessly alongside it. At the same time, however, it is a distinct service in its own right as it offers several very specific features designed to meet the needs generated by the current market conditions. Treating Customers Fairly (TCF) in the current market cannot be ignored. With HML's special servicing proposition we work with your customers to identify the best result for their individual situation. You can be confident you have a robust and fully transparent process in place, which will arrive at the most affordable and commercially appropriate outcome in response to the customer's individual circumstances.

How does it work?

With a fully integrated approach, HML offers a unique combination of arrears management strategies that are created using market leading predictive and performance analytics. We have a highly experienced management team and work alongside a carefully selected and controlled panel of suppliers. This is supported throughout the process via the provision of key management information and full account management, delivering strategies and performance based pricing. HML closely manages the relationships and contractual agreements with the third party companies by way of formal contracts. All these suppliers are benchmarked against market leading service levels to ensure their suitability for this work. Using complex analytical and predictive modelling tools we are able to devise and implement strategies to maximise cash flows and recoveries and minimise the losses that are realised on arrears cases. We work with the customer to help them return to a performing status or to mitigate any potential loss by applying appropriate alternative strategies.

HML's offering is a solution with four key attributes

Supplier management removes cost and infrastructure requirements – HML brings together a range of carefully selected suppliers to establish a single solution for lenders to use for their arrears management and recovery actions.

Analytical modelling and reporting – A bespoke detailed analysis and predictive model covering performing loans, early arrears cases, borrower affordability and repossession loss curve forecasts. A strategy developed by recognised experts – Providing a structured strategy and unrivalled level of expertise in arrears management to ensure cash flows are maximised and losses can be minimised. Performance based pricing – As an outsourced servicer provider, HML's objective is to provide a quality service that delivers value. Servicers have historically been remunerated based on the activities they perform rather than the results they achieve. HML is now pioneering a performance based pricing approach which ensures our own interests are closely aligned with those of our clients.