Servicer News, Vol. 7 Spring 2014

posted by Joe Andries on Thursday, March 20, 2014

Third Party Servicing, The GreatAmerica Experience, 2013 Year in Review
ABOUT US

GreatAmerica Portfolio Services Group (GPSG) is a lease and loan outsourcing service provider specializing in third party and backup servicing. We focus on developing mutually beneficial relationships with banks, independent financial companies, captives, vendors, manufacturers, trustees and financial investors, ultimately helping them achieve greater success.

NOTES FROM THE FIELD

Third Party Servicing - Standard Operating Procedures

A successful outsourced servicing partnership starts with well-defined Standard Operating Procedures (SOPs). SOPs help set client expectations and determine the means for managing the relationship, which include performance evaluation and monitoring. The SOPs should align the services provided by the servicing partner with the company’s strategies and objectives. SOPs are also used to guide the service provider in setting resources, training employees, and guiding internal audits of the operational results expected from the client. At GPSG, we continually review and update the SOPs for each of our clients–it is our path to meeting the client’s needs and delivering that value-add servicing solution.

Third Party Servicing – The Invoicing Process

Whether it is a lease, loan, or power purchase contract, the invoicing process is pivotal to any servicing organization.  It’s a client-branded recurring “touch” throughout the contract’s life. For that reason, the GPSG invoicing process is well defined, audited and carefully monitored. Before a contract is activated in our servicing system, we perform an audit to ensure the contract matches the data in our system, which initiates the invoicing.  Daily reports confirm the invoicing runs and sample invoices are reviewed for completeness and accuracy. We take our invoicing responsibility seriously and recognize that invoice quality is a direct reflection on our client.  It alone can be a main contributor to successful customer retention and loyalty – for both our client and their customers.

The Importance of the Backup Servicer

The growth in solar and equipment finance markets has renewed interest in the use of asset-backed securities as a funding strategy. For smaller or unrated issuers to securitize, it’s a good idea to partner with a backup servicer that specializes in solar or equipment financing.  For these opportunities, the investment community and ratings agencies place emphasis on servicer default scenarios. Having a backup servicer is one thing, but having a backup servicer that’s prepared and willing to step in following a servicer default is crucial. Recently, more reliance is placed on who the backup servicer is as opposed to the servicer’s expertise to service the “like” contracts. A detailed transition plan, standard operating procedures, and a willingness to allocate quality resources towards a successor servicing event should be known. For solar, does the backup servicer have the operations and maintenance of the solar system covered? GPSG combines its financial strength, servicing expertise, capabilities (within and of its partners), and its willingness to offer a very effective and efficient means of servicing protection for the investors.

THE GREATAMERICA EXPERIENCE SPOTLIGHT

As our clients grow, we know that their success is contingent upon how well we service their customers.  We take a proactive approach toward ensuring we have adequate resources in place to sustain the value added servicing levels expected of us.  Our hiring process requires our team members to fit the GPSG culture and deliver expertise to our clients and their customers.  We place high emphasis on continual training and understanding our client’s business models.  We understand that we are an extension of our client and continually ensure we have the right number of employees in place, the right quality of employees offering expertise, and the employees trained to the client’s needs - all to deliver The GreatAmerica Experience


Cherie is an Account Operations Specialist responsible for onboarding new clients and overseeing the booking of individual contracts. A GreatAmerica veteran of 13 years, Cherie enjoys bringing the GreatAmerica Experience to our customers. “I have a lot of pride in being the best at what we do. The level of service we bring to the table helps our customers be the best at what they do,” Cherie said. “This is important because we are a direct reflection of the primary customer who has hired us for the servicing.”

Born in Iowa Falls and raised in Cedar Rapids, Cherie volunteers for Hospice of Mercy and likes spending time with her four grandchildren. 

JOE'S CORNER

2013…The Year in Review

Like many companies in the finance industry, 2013 was a very good year for GreatAmerica Portfolio Services Group.  In reflection, I am excited to share some of our achievements from the previous year and look forward to focus areas in 2014 and beyond.  We continue to evaluate internal processes as we strive to become the leader in providing third party outsourced servicing solutions. 

Achievements:

  • Enhanced our ServicerZone front-end servicing platform
  • Expanded our reporting capabilities for our customers 
  • Implemented an enhanced servicing platform for the residential solar industry
  • Assisted banks who were either starting or growing their leasing portfolios
  • Grew our third party relationships by 100%
  • Grew our backup servicing portfolio by 75%
  • Welcomed 10 new GreatAmericans to our servicing team


Focus Areas:

  • Continued growth and development of our Team
  • System enhancements geared towards customer needs
  • Pursuit of equipment finance, banking and solar growth opportunities
  • Enhance our value proposition for our clients through our services and products


We feel good about our accomplishments and are always looking to be a better servicing partner for our customers.  They rely upon us to play an important role in their success – a role we don’t take lightly.  We want our customers, investors, and communities to be proud of their association with us based on our reputation for hard work, integrity, excellence, and history of success.  Whether you are a customer, prospect or a friend of GreatAmerica Portfolio Services, we thank you for a successful 2013 and look forward to a great 2014!

Joe Andries
Vice-President & General Manager
GreatAmerica Portfolio Services
Tel. 877-762-3808 or 507-929-5117
Fax 877-762-3809

jandries@greatamerica.com 
 

Why Should a Bank Offer Leasing?


New Asset Growth and
Diversification
 
•  Originate new assets outside of traditional bank opportunity channels
•  Assets tied to essential use equipment (security)
Asset Performance
 
•  Relatively higher-spread earning assets
•  Properly originated assets perform well on delinquency and write-off metrics (in-line with banking standards)
Customer Demand
 
•  Allows product offering for Bank customers looking for flexible financing alternatives (e.g. convenience, 100% financing, preserve lines of credit, etc.)
•  Increase wallet-share with customers and develop relationships
•  Funding product alignment of the asset acquisition, the asset life and the asset production (self-funding asset)


 

Benefits of Outsourcing


•  Partnering with an industry expert – leveraging their platform and knowledge
•  Instant access to world class capabilities
•  Leasing more difficult to manage internally
•  Reduce associated start up and operating costs
•  Eliminate barriers to entry or exit
•  Resources not available internally
•  Focus internal resources on priority areas of risk management and originations
•  Maintain control through standard operating procedures
?
 

CALENDAR


IMN/ELFA Investors Conference
New York, NY
March 20, 2013


National Equipment Finance Association Summit
Scottsdale, AZ
April 2 – 4, 2014
 

Greentech Media Solar Summit
Phoenix, AZ
April 14 – 16, 2014
 

ELFA National Funding Conference
Chicago, IL
April 23 – 25, 2014
 

NAELB Annual Meeting
Orlando, FL
May 1 – 3, 2014
 

IMN Sunshine Backed Bonds Conference
New York, NY
May 2, 2014
 

PV America East
Boston, MA
June 23 – 25, 2014

Copyright © 2013, All rights reserved.
GreatAmerica Portfolio Services | 625 First Street SE, Suite 800 | Cedar Rapids, IA 52401

To continue to ensure delivery of our newsletters, remember to add "jandries@greatamerica.com" to your address book or safe senders list.
 

About The Author

Joe Andries, Vice President and General Manager of GreatAmerica Portfolio Services Group LLC, is responsible for the sales, marketing, operational oversight and strategic planning for the Portfolio Services Group. Prior to joining GreatAmerica Portfolio Services Group in 2010, Joe was the SVP and ... read more

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