Dig Beyond Symptoms to Improve Ailing HELOC Collections

The Big Picture

The coronavirus pandemic has taken a still-almost-unimaginable hit on our nation’s economy. Millions of people have lost their jobs, and millions more are facing financial insecurity with paychecks that cover fewer hours. With concerns rising over an imminent recession, is your bank prepared to offer consumers the right help and resources to prevent charge offs with its Home Equity Line of Credit (HELOC) business?

The Spinnaker Approach

When first approached by a bank that needed help resolving a compliance issue with its HELOC Collections team, Spinnaker took a deep dive beyond those initial symptoms to uncover root causes that were preventing the organization from effectively supporting customers navigating the current economic environment.

We started with a comprehensive assessment of the existing environment to identify strategic opportunities, as well as compliance gaps spanning people and operations. Learnings from that analysis informed new models, decisioning tools and customer repayment resources, creating a better-managed Collections team that meets rigorous regulatory requirements.

The Client Benefits

Our strategy delivered tailored charge-off, recovery and forecasting models, along with management reporting and trigger alerts. With our collaboration, the client designed helpful debt assistance support for customers. The improved Collections environment has reduced risks and positioned the bank to meet regulatory compliance standards. The bank also gained enhanced data analytics, which identifies trends and opportunities.

Read our HELOC case study to explore how Spinnaker helps banks position their HELOC Collections to be more effective.