Recent Events Renew Focus on Risk Management Issues.(Mortgage Bankers Association of America Convention)

With memories of a national tragedy fresh in mind, attendees at this year's MBA national convention are likely to focus more attention on issues such as disaster recovery than they might otherwise have, according to two consultants who will be at the convention.

Steve Faulkner and Nancy Nastally of The Performance Group, who are based in Dallas and Fort Wayne, Ind., respectively, say that the national tragedy on Sept. 11 sharpened everyone's focus on the potential for catastrophe, especially for companies operating in areas with known hazards such as earthquake faults and hurricane risks. The Performance Group provides consulting services exclusively to the mortgage industry.

"Without sounding over-reactive to the current environment, I think people will think more about issues like disaster recovery plans," Ms. Nastally said.

And the slowing economy also will be a concern for the convention goers.

"If we continue to see the economy slide, people are going to really look at how they can do more with less; how they can cut costs and remain competitive," Mr. Faulkner said.

And the slowing economy also means there will be more focus on default management than there has been at other recent MBA conferences. Default management is "really under the spotlight now," he said.

For lenders and servicers, the slowing economy also means their business partners are becoming more conscious of issues that can slow productivity and add unnecessary costs. When the market slows, things such as late documents and unfiled certifications can come back to haunt the mortgage industry. For that reason, investors will start clamping down on quality control, Ms. Nastally said.