PFSC offers the markets it serves a wide range of backup servicing options, from cold backup to hot backup. In general, the three categories of backup servicing are:
PFSC will receive a comprehensive data file from the client. PFSC will then conduct data mapping and build conversion routines to facilitate the loading of client portfolio data onto PFSC’s technology platform. Once complete, PFSC will receive, load, and analyze client portfolio data monthly. The final output of this process is a reconciliation and certification that PFSC performs and issues to the client and its capital providers. This process can also be facilitated at different intervals, including weekly.
In addition to the services performed for cold backup, PFSC will elevate its state-of-readiness by performing additional functions. While portfolios vary, PFSC may perform the following:
- Obtain and store copies of lease or loan documents;
- Gain view access to lockbox and deposit accounts;
- Obtain copies of the client’s policies and procedures;
- Obtain copies of the client’s invoice templates, collection letters, and other client correspondence;
- Complete a detailed servicing questionnaire with the client; and
- Complete a transition plan.
In addition to the services performed for cold and warm backup, PFSC will complete a conversion of the client portfolio onto PFSC’s servicing platform. Once converted and reconciled, PFSC will perform parallel or shadow processing of all, or portions, of the client portfolio with periodic reconciliations conducted to ensure accuracy. Hot backup servicing affords the highest state-of-readiness and would allow PFSC to transition to successor servicer on short notice.
Unlike some organizations who promote their backup servicing capabilities but do not have a robust primary or successor servicing platform, PFSC has been servicing portfolios either as primary or successor servicer since 1992. As such, PFSC is appropriately qualified as a backup servicer and well positioned to assume successor servicing duties if and when called upon.