The tough economic environment has had wide–ranging impacts on American homeowner’s, many of whom have suffered from a loss of income, increased interest rates, and depressed home values. As a result of the distress it has placed on homeowner’s throughout the U.S., the Federal Government launched a program entitled Making Home Affordable to help stabilize the housing market. The newprogram was designed to provide homeowners with a means to avoid foreclosure and bankruptcy by reducing their monthly mortgage payments to more affordable levels.
Since homeownership is a central issue in the United States economy, home mortgage servicers have received continuous media coverage on their compliance with the Federal program and their willingness to assist struggling homeowners stay in their homes. The intensity of this political spotlight created a uniquely challenging and dynamic environment for the HAMP project.
A major financial service provider, in support of the Federal Government’s Home Affordable Modification Program (HAMP), launched an initiative to increase the number of HAMP modifications in their investor portfolio. The goal for Phase I of the program was to modify 100,000 loans into HAMP trial mods by 11/1/2009. At the start of Pactera’s engagement, this major financial service provider was about a third of the way toward reaching the Phase I goal. The Pactera team was engaged to quickly and efficiently support and drive the implementation of project management routine, process design, reporting and measurements to help the client accomplish the goal.
The existing HAMP project team lacked integration and a cohesive/centralized project structure to raise or mitigate issues and risks. Additionally, the reporting teams and functions were not integrated, which resulted in erroneous data, or data that did not fully address the needs of the executive team or help the project teams identify gaps, risks, and areas of improvement. Further, the project team lacked a centralized team of resources to systematically and constructively respond to and address ongoing changes to the Federal HAMP guidelines.
To add to the challenge of this engagement, the economic and political climate associated with the financial industry and home mortgage servicers provided additional pressure to the HAMP project teams, who were taxed with processes and system issues and improving the overall customer experience. To reach the goal of 100,000 completed trial modifications, the marketing team needed to work at a rapid pace to identify creative ways to market and solicit customers for the HAMP program while the loss mitigation teams needed to improve the skills and success of reps responsible for interviewing customers for HAMP and increase their outbound calling campaign performance. Technology teams needed to work with third party vendors to improve the system in which customers pre-qualified for HAMP, while the reporting teams needed to streamline and greatly improve their metrics and reporting processes.
While much was happening on the individual project teams, without a cohesive structure and process for effective and efficient communication and problem solving, much of the individual gains were disconnected or had little impact on the overall goal.
Pactera helped to stabilize the project work streams by serving as a central “hub” of information and support for the HAMP program team. Pactera’s experienced resources were paired with the project teams that were least connected to the effort, but integral to its overall success.
One of these teams was marketing, which was a key focal point for Phase I in that it was responsible for creating the solicitations and campaigns to increase the number of borrowers pre–qualified for the Federal HAMP program. Pactera established trusting relationships with key clients in the marketing work stream and was able to quickly implement project management routines. These routines provided consistency and structure to the team meetings, and formalized the process for internal communications and management of issues and risks. Additionally, Pactera’s presence helped to break down the siloed processes and structure for this team. This was accomplished by restructuring and leading the marketing team meetings, routinely raising relevant issues and points of integration into the team discussions, and initiating meetings with external business stakeholders to build more comprehensive marketing campaign strategies. By making the marketing campaign process more collaborative, Pactera was able to gain more business support from the loss mitigation and reporting teams. Additionally, this increased business support allowed marketing to execute their campaign strategy in a more efficient manner.
Within a month of Pactera’s presence on the HAMP Project, additional Pactera resources were requested to provide project management, process design and process improvement support to improve the end–to–end HAMP process. These resources along with the existing Pactera team, provided additional stability to the PMO, helped streamline inefficient reporting and communication processes, and conducted process design sessions to address HAMP program gaps.
In a short amount of time, Pactera delivered an end–to–end customer contact strategy and process to the major financial service provider organization. What at first appeared to be an extremely unattainable goal of 100,000 completed trail modifications by Nov. 1, it was a goal that enabled the client make great strides towards helping more homeowners modify their mortgage while improving the client’s overall standing against its competitors offering the Federal HAMP program.
Results & Benefits
Pactera’s project management support resulted in the following achievements:
- Reduced the siloed nature of the marketing function by integrating and aligning the marketing strategy with the strategy of the overall HAMP program.
- Formalized the process for managing and communicating within the internal marketing organization.
- Facilitated greater alignment of the marketing campaigns to the HAMP reporting requirements.
- Provided detailed process flow documentation of the HAMP customer contact strategy including program entry and exit points and business handoffs.
- Improved the management, visibility, and tracking of communications required to comply with the Federal HAMP program guidelines.
- Enabled a more efficient and effective process for developing customer communications and marketing material in response to the rapidly changing HAMP program guidelines.
- Reduced the turnaround time for producing HAMP customer letters from a ten–plus day cycle down to three days; improving the ability of the mortgage servicer to notify customers in the HAMP program.
- Provided a strategy and plan for marketing to perform a comprehensive review and reduction of customer communications issued by the Default business.
- Microsoft SharePoint 2007
- Microsoft Office Suite
- Microsoft Project
- Microsoft Visio