Technology Key to Managing Rise in Defaults: 'There needs to be a push in technology to get those people who are processing the loan connected with law firms and attorneys.'.

CHICAGO -- Default servicing costs have increased substantially in the last several years, resulting in a push to focus more on loss mitigation.

There is currently a disconnection between the collection component of the default process and the attorneys who handle the proceedings, which slows down the process and impedes resolution through loss mitigation, observes Mary Hunter, chief executive officer of ACEX LLC.

"We've seen a push in technology on the origination side at the front end. If you look at anybody who does both the front end and the back end, they don't have a focus for the servicing end. They do not cater to loss mitigation or loans in default," said Ms. Hunter. "There needs to be a push in technology to get those people who are processing the loan connected with law firms and attorneys."

Particularly when it comes to default servicing, knowledge sharing with network partners is very good for business, she says. It is important to have a system that services as a communications tool between industry network partners. Servicers, outsourcers, law firms, GSEs and investors all have critical personnel and business information to communicate both internally and externally on a daily basis.

The Chicago-based company's solution was created to fill an empty niche by serving two critical needs. It streamlines the task of storing and managing contact information and it provides a means for posting and sharing documents that are used in the course of daily business. The Web-based platform organizes contact information into multiple levels by company, by department and by individual.

"In simplest terms, it is a real-time phone book and bulletin board for the industry - though it has much more to offer. The system keeps track of personnel changes, turnover, responsibility changes," Ms. Hunter said.

"A lot of times, people don't know where to go and who to contact. Our software provides contact information, business procedural information. It shows who is handling loss mitigation for a specific servicer or law firm. This is a way for them to communicate and maybe come up with a plan to fit the borrower."