SERVICERS’ BOARDING PROCEDURES | Key Points
- The attention of Florida circuit courts has recently been drawn to the boarding procedures of servicers and banks. Unless these procedures ensure documents received from a prior servicer are accurate, reliable and trustworthy, the prior servicer’s documents will not be admitted into evidence.
- If a witness for the servicer offers testimony regarding the onboarding procedures of its employer, the witness must be intimately familiar with the onboarding procedures and any documentation supporting those procedures to ensure consistent testimony. The testimony should demonstrate personal familiarity with the onboarding process, that the loan in question went through that boarding process and that all records received from the prior servicer were verified for accuracy before being integrated into the servicer’s system.
- If deposition or trial testimony is offered regarding written policies and procedures for a servicer’s onboarding process, the servicer should anticipate that the court will require disclosure of these documents to the borrower.
- A Miami-Dade Court has gone as far as to bring Criminal Contempt charges against Plaintiff’s counsel for indirect contempt of court, based on a servicer testimony that proved to be inaccurate.