1. Expand Your Default Management Expertise
Speakers:
Kaye Dreifuerst, Receivables Management Association International
Brett Soldevila, Receivables Management Association International

2. Best practices in Receivables Management
We will discuss:
Brief overview of receivables management industry
New documentation requirements
Factors that determine pricing
Compliance – Why it’s Important
Compliance – How to Comply
Finding portfolios to bid on

3. Receivables Management Industry
The root of what we do….
Consumer and commercial banks, financial institutions, thrifts, lease companies, etc, have accounting practices that require them to charge off receivables once they become days past due (non accrual).
Monthly practice – Billions of dollars worth of accounts that are ‘charged off’ regularly.
Recoup some of their loss:
Collect internally
Outsource to third parties
Sell accounts to RMA members
One-off transaction
Forward-flow transaction
While they can sell their receivables–the chain stays intact.

4. New documentation requirements ensure the seller is in compliance
FTE needed to support process
Documentation provided upfront or on a per-request basis
Cost of the documentation process
Documentation process & availability has direct effect on pricing

5. Key Factors That Determine Pricing
Asset Type
Secured vs Unsecured
Borrower Type
Consumer vs Business
Credit Grade (A-D)
Demographics (age, location)
Borrower Frequency
Account Balance
Principal
Interest/Fees
Forgiveness/Settlement Offers
Investment Goals/Benchmarks (IRR, ROI, etc)
Forecasting how much a portfolio will cashflow

6. Compliance – Why It’s Important
New era since implementation of Dodd-Frank
CFPB Supervision Manual (CMS expectations)
OCC Bulletin : Third Party Relationships
Other Driving Factors – Consent Orders, State Laws
How Do All of these Requirements Apply to Debt Purchasing & Collection?
Due diligence prior to purchase/sale of accounts
Contractual requirements
Review of control structure
Required account documentation to collect
Account data elements needed based on asset class
Secure data transfers and data security controls to protect consumer data
Vendor management
Vendor due diligence & auditing

7. Compliance – How to Comply
RMA Membership
RMA Certification – holistic approach to compliance
Implemented in 2012 to establish an industry self-regulatory program
Certification Standards – address account documentation, chain of title, consumer complaint and dispute resolution, statute-of-limitation compliance, vendor management, credit bureau reporting, resale, and other relevant operational procedures
Benefits of Certification
Streamlined Compliance/ Reduction in Risk
Bank requirement
Leads Distribution Initiative

8. Finding Portfolios to Bid On
Build relationships with original creditors/lenders
Build relationships with Certified Receivables Management Companies
Held to higher standard
Participate in ongoing education
Independent third-party audits conducted
Best Practices and Industry Standards
Right size your relationship – Local/Regional/National
Local area and event knowledge
Specialized processes and systems

9. Q&A Discussion Complimentary Originating Creditor Membership
RMA offers complimentary membership to creditors (application is required). Membership in the association provides access to other members, timely communication on regulatory changes and trends in the industry, online and in-person education and discounts to RMA International conferences and education.