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息 2016 NTLA and VADAR速 Systems 1
#NTLAANNUAL16
Lien Servicing Essentials
Operational Efficiency
VADAR速 Systems
Jed Reitler, VP Sales
Feb 25, 2016
theNTLA.com | vadarsystems.com 2
Portfolio Management
Asset Classes and Securitizations
Investment Philosophies
Alternatives
theNTLA.com | vadarsystems.com 3
Servicing
theNTLA.com | vadarsystems.com 4
Varied Statute Compliance
Tracking and Reconciliation
Parcel Data Management
Collections and Notices
Foreclosure and REO
Legal Filing and Fees
Custodial Services
Servicing
theNTLA.com | vadarsystems.com 5
Due
Diligence
Acquisition
Subsequents
Legal and
FeesNoticing
Disposition
Analytics
Analyze
Manage
Report
6
Competition
October 22, 2015
Technology
October 22, 2015
Spreadsheets  Systems
Collaboration
Your Back Office
Parcel Research
Field Inspection
Parcel
Analysis
LoC Payment
Raise Capital
Auction Bid Court
Filing Fees
Lender
Reporting
Load Acquisition
Portfolio
Organization
Flags and Holds
Owner Notices Court
Notices
Hold Notices
Payment Plans
Collections
Cash Flow
Analysis
Assess
Subsequents
Load and
Integrate
Subsequents
Integration
and Valuation
Analysis
Audit
Discrepancies
Report
Transactions to
Auditor
Rectify Lender
Reporting
Load
Redemptions
Review and Post
Payments
Report Cash
Flow Analysis
Report
Redemption
Curve
Bankruptcy
Foreclosure
Title Clearing Legal Notices
Court
Filing
Borrowing
Base Reports
Operational
Review and Audit
Bottom-Line Profit
Analysis
Adjust Investment
Strategies
theNTLA.com | vadarsystems.com 11
Your Back Office
theNTLA.com | vadarsystems.com 12
State-by-State Servicing
theNTLA.com | vadarsystems.com 13
CO FL IN NJ
Bid System Premium Bid Bid Down Premium Bid Bid Down w/
Premium
Interest Rate Fed disc. + 9 pts 18% 18%
Redemption Term 36 months 24 months 12 months 24 months
Accrual Term Monthly Monthly Every 6 Months Daily
Penalty 5% Minimum 10% then 15% Fixed
Premium Allowed Yes No Yes Yes
Premium
Recoverable
No No Yes Yes
Premium Interest No No 10% No
Pay Subsequents Yes No Yes Yes
Subsequent Interest Fed disc. + 9 pts N/A 8% - 18%
Fees  Fed disc + 9  Property Search
 Tax Deed App
 Property Search
 Recording
 Tax Sale
 Property Search
 Recording
 Penalty 2%-6%
Profit
Risk
theNTLA.com | vadarsystems.com 15
Scale
theNTLA.com | vadarsystems.com 16
3 Choices
Build BuyServicer
Their Strategy
Less Control
Basis Points
Cost Over-Runs
Never Finished
IT Experts
Your Strategy
Configurable
Scalable
Servicer
theNTLA.com | vadarsystems.com 18
Build
Build costs 180% more
for 1/3 of the planned design.
Buy
Tax Lien Servicing Essentials
Acquisition Custodian Redemption Subsequents Enforcement
Search Audit
Instant
Analysis
Export Interface
Dashboard
Measurable $ Results
Quantifiable Improvements:
Enhanced cash flow
Lower error rates
Increased scalability
LienApp.com
sales@vadarsystems.com
877.823.2700
vadarsystems.com 24
Thank You
Question and Answer Session

More Related Content

Tax Lien Servicing Essentials

Editor's Notes

  • #2: Thank you for coming. Comments on accommodations, participants, NTLA. Banker and the Frog joke as participants enter Lab 2. VADAR background: 20 years, $2b A.U.M., Private AND Public solutions. Agenda: (1) Servicing vs. Portfolio Mgmt (2) The Cost of Servicing (3) Servicing Choices (4) Servicing Solutions
  • #4: Misnomers and terms carried over from investment finance. Alpha and Beta risk management focuses on research, selection, strategy. Fewer statute variances, mature and standardized regulations, mature markets. Online mechanisms of research, distribution, researching, communications, allocations, etc.
  • #5: Less mature marketplace with thousands of statutes varying county by county. Exponentially greater friction, inefficiencies and cost of management, servicing a portfolio. [Survey audience how many outside AZ/FL and appreciate these activities] What is your bottom-line impact of servicing? Do you measure your OpEx and impact on revenue? EBIDTA vs Operating Income (EBIT) drastic. What is your risk of error? What is your audit cost and risk of fraud? How does turnover impact operations? What is your OpEx trend as investments grow?
  • #6: 30,000 foot view of Tax Lien Servicing process. Over simplified. Inefficiencies, redundancies, retraining, legal compliance, paperwork. Deming Plan/Check/Act. Feedback loop and improvements.
  • #7: Spreadsheets are Free up to a point Good for up to 100 liens and subsequents, state depending Human error, unreliable data back up and recovery Non-compliant, non-collaborative, non-consolidated
  • #8: Encourage audience to see Oct15 Forbes Insights survey of hundreds of Wealth Managers Review competitive market pressures: rush to Alternatives, more Bidders, giants with 0 cost of capital Forces executives to look both outward (improved returns) and inward (productivity, profitability)
  • #9: Technology for Profit / Risk / Scale Efficiency drives profits (2) Reduce risks of error, fraud (3) Facilitate growth at lower cost
  • #10: When Free isnt Free 1. Human Error 2. Non-Compliant 3. Non-Collaborative 4. No Data Recovery 5. Not Scalable 6. Cannot Test 7. Inflexible 8. Not Consolidated 9. Slow Decisions 10. Fraud
  • #11: Share in Real Time, Increase Security, Reduce Errors, Save Time and Money
  • #12: Does your back office look something like this? Compartmentalized or matrixed? Series or parallel? How often do you reconcile discrepancies? How often do high-cost errors occur in records, notices, filings?
  • #13: What is your offices readiness? Time efficiency? Profitability?
  • #14: 29 States each with different calculations Sampling 6 states to represent and encompass all variables and rules in the industry CO Lost premiums need time for interest to accrue FL 0.25% interest is very common NJ Majority with 0% interest 1-time flat rate penalties change the game
  • #15: What are your annual Operating Expenses? What are your business Liabilities beyond your financial Liabilities?
  • #16: [Ask Questions and Make it Personal] How close are you to breach, fraud or loss? How many errors could cost 5 or 6 figures?
  • #18: 3 Servicing Choices Serviders beholden to their investment philosophy, with classic fee structure punitive to growth Build - $250,000 and 3 years earlier Buy Take advantage of 20 years experience in 5 years of development. Scalable from institutions to individuals
  • #19: Their fee structure, their investment philosophy, their servicing systems
  • #20: Dire decision to do it all. Maybe lucky on scope and on budget. But then: IT costs, obsolescence, lose compatibilty with other systems
  • #21: All in One SYstem Let visuals speak for themselves represent wishes.
  • #23: Home screen with powerful dashboard Instant overview of portfolio return, value, and status by fund
  • #25: Thank you for your time, and we look forward to answering any questions you may have.