Winning in residential solar: Effective account servicing is key

Winning in residential solar: Effective account servicing is key

How the right servicing partner can accelerate growth and facilitate access to capital

By: David Johnson

The residential solar market has been on a tear. Solarbuzz noted that the demand for solar energy has risen by an average annual rate of 30 percent over the past 20 years, and will hit a projected $96.8 billion by 2014, nearly triple 2009.
 
Despite this prodigious growth, competition in the industry has grown even faster. There are thousands of installers and a new generation of well-funded, venture backed startups is bringing new business models to the market at a rapid pace. As these new companies and models have entered the market, speed to scale has become more critical than ever.

Customer financing models in the form of leases, power purchase agreements and equipment purchase loans have become one of the main drivers of market growth and a key competitive edge for companies. But solar companies have found the ongoing servicing and management of these arrangements to be well outside their core competencies. Outsourcing this key activity can greatly enhance a company's scalability. But choosing the wrong partner can quickly turn into a black hole for management time.

Servicers are often viewed as simply payment processors but the right one can offer a lot more. Better customer relations and headache-free service are just the beginning. The right servicer can also facilitate capital accessibility and help accelerate growth.

The trick is evaluating which servicer can deliver these benefits. There are many intangibles, but here are a few common threads:

They invest in state of the art, cloud based IT and communications platforms. Forward thinking servicers don't wait to build scalable, secure, dynamic platforms when you need it. They have it now.

They have the infrastructure that banks and other financial institutions require. Financial institutions have a high bar for servicers. An SSAE 16 process audit is a common requirement as are intrusion detection systems, penetration testing as well as a host of other process and security related capabilities.

They have a strong network and reputation in the financial community. Major bank clients? Check. Large investment bank clients? Check. A servicer who is known and respected in financial circles will open doors for you.

They have a management team you feel good about. Common ground should be easy to find. You should be learning from them while they learn from you. Their ambition should match your own.

In this day and age of exponential growth combined with increased competition and rapid price declines, residential solar companies must look at all angles to keep a competitive edge and sustainability in the industry. While not quite so obvious to many, the right loan servicing partner can be one of the best assets toward enhancing market viability. It requires looking at them for what they can bring to the table, not just what they do administratively.

As seen in: PV Solar Report http://pvsolarreport.com/index.php?option=com_k2&view=item&id=582:effectice-account-servicing&Itemid=2

As seen in: Smart Grid http://smart-grid.tmcnet.com/topics/smart-grid/articles/2012/12/25/320638-winning-residential-solar-effective-account-servicing-key.htm

First Associates Loan Servicing completes compliance audit with zero discrepancies

First Associates Loan Servicing completes compliance audit with zero discrepancies

Rigorous Statements on Standards for Attestation Engagements (SSAE) 16 review testament to company’s commitment to data integrity, security, client service

SAN DIEGO – October 18, 2012 – First Associates Loan Servicing, one of the country’s fastest growing consumer loan servicers, announced its recent completion of its Statements on Standards for Attestation Engagements (SSAE) 16 audit with no discrepancies.

The internationally recognized, third-party assurance review is the de facto standard in the financial industry for assuring that an organization maintains a high level of data integrity, security and highly secure work processes.

“The SSAE 16 examination is designed and monitored by the American Institute of Certified Public Accountants and conducted to discover flaws in both design and process, and we’re pleased that ours were found to be 100 percent compliant and error free,” said David Johnson, CEO of First Associates Loan Servicing. “It’s a testament to our commitment to providing the highest level of client service through a state-of-the-art technology platform that meets or exceeds all governing standards.”

About SSAE 16

SSAE No. 16, Reporting on Controls at a Service Organization (AICPA, Professional Standards, AT sec. 801) is an attestation standard that establishes the requirements and guidance for reporting on controls at a service organization relevant to user entities’ internal control over financial reporting. The controls addressed in SSAE No. 16 are those that a service organization implements to prevent, or detect and correct, errors or omissions in the information it provides to user entities.

SSAE No. 16 superseded the SAS 70 audit standard in mid-2011. It is the adopted version of the International Standards for Assurance Engagements (ISAE) No. 3402, Assurance Reports on Controls at a Service Organization, for use in the United States.

About First Associates Loan Servicing

First Associates is one of the nation's premier consumer servicing firms and comprised of a team of professionals with a world-class experience, first-rate knowledge and exceptional technology. First Associates provides best-in-class servicing for titled assets and unsecured loan portfolios with a staff that is committed to providing the highest level of service to borrowers while maximizing lender and investor returns. More information is available at www.1stassociates.com.

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© 2013 by First Associates Loan Servicing, LLC. All rights reserved

Abundant Power signs First Associates to manage loans for St. Louis County's energy efficiency program

Abundant Power signs First Associates to manage loans for St. Louis County’s energy efficiency program

 Partnership has exceeded mandated delinquency, default thresholds in government-backed residential project

SAN DIEGO – September 19, 2012 – Abundant Power has contracted First Associates Loan Servicing, one of the country’s fastest growing consumer loan and lease servicers, to manage a residential energy efficiency financing program for St. Louis County.

Early returns indicate that the partnership has outperformed forecasted delinquency and default threshold rates mandated by the local governmental body.

“We operate on the basis that new ideas and solutions are needed to bring private capital into the clean energy economy,” said Dank Pinckney, Managing Director of Abundant Power. “Before agreeing to participate, St. Louis County wanted assurances that the loan portfolio would not only perform well and be serviced effectively. We needed a true partner that could do this, and found it in First Associates.”

Abundant Power provides innovative, best in class, financial products and services to finance and implement energy efficiency and renewable projects and improvements across the nation. The company’s four operating divisions serve critical needs of the clean energy ecosystem including growth equity, efficiency finance, solar finance and energy productive schools.

One of the company’s existing programs is a residential energy efficiency financing initiative for St. Louis County. Abundant Power created the program with the County to provide homeowners with low interest loans to implement projects that substantially improve home efficiency and reduce monthly utility expense. Program funds are provided from a one-time issuance of Qualified Energy Conservation Bonds sponsored by the County the flow through to fund fixed interest loans of 3.5 percent to County residents. Most Program loans are originated through local marketing efforts and through local contractors and vendors. The Program also has a dedicated website at stlouiscountysaves.com where residents apply and are approved for Program loans.

“We believe, first and foremost, that we’re in the people business.  We’re working with Abundant Power to help individuals reduce their carbon footprint and build a solid financial future for themselves and their families,” said David Johnson, CEO of First Associates Loan Servicing. “Abundant Power has put together a new and innovative program that exemplifies how effectively government and private enterprise can work together.  We’re excited to be a part of it.”

About First Associates Loan Servicing

First Associates is one of the nation's premier consumer servicing firms and comprised of a team of professionals with a world-class experience, first-rate knowledge and exceptional technology. First Associates provides best-in-class servicing for titled assets and unsecured loan portfolios with a staff that is committed to providing the highest level of service to borrowers while maximizing lender and investor returns. More information is available at www.1stassociates.com.

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© 2013 by First Associates Loan Servicing, LLC. All rights reserved

Green Grants partners with First Associates to bring solar power to Louisiana

Green Grants partners with First Associates to bring solar power to

Louisiana

- Program helps Louisiana homeowners benefit from federal, state tax credits to lower

cost by 80 percent-

SAN DIEGO – July 24, 2012 – First Associates Loan Servicing, one of the country’s fastest growing consumer loan and lease servicers, was selected by Green Grants to service its rapidly expanding residential solar power lease portfolio.

The organization helps Louisiana homeowners benefit from federal and state tax credits to lower the costs of going green by 80 percent.

“Our goal is to be the consumer’s one-stop-shop for energy efficiency and renewable energy by taking away the headache and expense of implementing solar power systems for Louisiana homeowners,” said Tom Neyhart, President of Green Grants. “That not only includes the implementation process, but also how our customers are cared for when they are making their monthly payments. We needed a servicing company that put our customers first by communicating with them early, often and with the highest level of customer care. First Associates was clearly the best choice.”

Historically, Louisiana homeowners were required to bear the upfront cost of solar projects and claim these credits at the end of the year against any tax liability, thereby excluding those that couldn’t afford to do so. Green Grants’ leasing program covers the upfront cost and provides homeowners with the power of solar. The offering not only has the potential to make Louisiana the greenest state in America, but reduce every resident’s monthly energy bill by up to $100.

“The partnership is a great one for us because our companies have similar approaches to customer service,” said David Johnson, CEO of First Associates Loan Servicing. “We’re in the business of helping people achieve their solar power ambitions, and work towards a more economic and environmentally-friendly future. We understand that the term “service”

David Johnson's Interview with Ryan Busch from Today's Campus!!

Check out the Interview here: http://todayscampus.com/article/Ryan_Busch_Interviews_David_Johnson_CEO_of_First_Associates_for_Todays_Campus

First Associates to service Student CU Connect CUSO, LLC (SCUC) loans

First Associates to service Student CU Connect CUSO, LLC (SCUC) loans

- Organization to tap company’s expertise for students with college expenses not covered by federal, state funding sources -

SAN DIEGO – July 2, 2012 – First Associates Loan Servicing, one of the country’s fastest growing consumer loan servicers, was selected by Student CU Connect CUSO, LLC (SCUC) to service the SCUC $100M portfolio of private student loans.

“Like the other programs supporting students, this consortium of seven credit unions serves a specific niche by offering private education loans to help pay tuition and other college expenses not covered by student aid from federal, state and other funding sources,” Tony Ferris of Student CU Connect CUSO, LLC. “To do so effectively, we needed a servicing firm that viewed the students not simply as borrowers, but individuals committed towards enhancing their education and formulating a responsible financial future. First Associates is that partner.”

SCUC is a service organization formed by seven credit unions. Loans under the program are made available to eligible students by Eli Lilly Federal Credit Union. Under the program, an eligible student may borrow from $1,000 up to the cost of their education, less all federal and state grant and loan aid received by the student and his or her parents for the student’s education.

“We’re pleased with this vote of confidence from SCUC and Eli Lilly,” said David Johnson, CEO of First Associates. “The CUSO’s selection of First Associates is the culmination of a one-year due diligence process that demonstrated the superior performance that our model can produce for investors, borrowers and schools. SCUC has an excellent team in place and we look forward to working with them.”

Check it out here as well!

First Associates' CEO, David Johnson, published in the Credit Union Journal

Loan Servicing Not Just Processing Payments

Written by First Associate’s David Johnson
Published in the "Credit Union Journal" on Monday, June 25

The loan servicing industry is due for a shake up; starting with truly understanding the business in which they operate.The widely held myth by such entities is that they are payment processors.

Not true at all. They're in the people business, and help individuals fund their dreams, pay off their obligations, and
work towards a responsible financial future. As member-facing entities, loan servicing companies and credit unions
must view the borrowers as valued patrons and treat them accordingly.

In doing so, they'll find their response rates rise and delinquency rates drop. The right approach for loan servicing firms should be to understand that the term "service" means something.

Here's a case in point. A recent survey we conducted with our customers showed that two-thirds of participants desire

to be contacted via e-mail and text by such firms. This stat dovetails nicely with a September 2011 Pew Research

Center study that indicated text messaging usage is up; with individuals sending an average of 41.5 messages a day.

Despite this trend, most loan servicing companies do the exact opposite and attempt to reach borrowers almost

exclusively by phone or postal mail. It's no wonder, then, that a lot of firms are struggling with high delinquency and
default rates within the portfolios they service.

 High-Touch Engagement Is Vital

Effective, hands-on, high-touch personal engagement with the borrower is at the heart of what loan servicing companies should focus on. That requires a well-tuned and updated platform that holds accurate information on the account holders. It also means leveraging multiple methods to convey and receive information such as SMS messaging and e-mail; not just the standard voice or snail mail. Above all else, loan servicing firms must reach out and connect with borrowers early, often and well before the payment due date.

Additionally, being nice to borrowers can make all the difference. There's not a person who doesn't recall a scenario

when they felt invalidated by a rude customer service representative, an insincere e-mail or form letter. That's a
sure-fire way to turn people off and have them do the exact opposite of what you intended. The old adage is still true;
you get more flies with honey than you do with vinegar.

It's not an old wives tale either. In 2009 alone, the financial services sector lost $44=billion due to bad customer

service, according to a multinational study commissioned by Genesys Telecommunications Laboratories. This sizable
figure is not attributed to market dynamics, but instead, because many organizations lack adequate care and concern
for their customers.

In this day and age, where kindness is in short supply and communication platforms are available to efficiently offer
customized and genuine conversations with clients, it's important for loan servicing companies to follow suit. Such firms must do a better job to recognize the numerous and changing consumer preferences and incorporate them into
operations that drive enhanced performance for lenders and superior customer experiences for borrowers. It's not only the right thing to do by individuals, but the more lucrative approach for the portfolios they manage.

Press Release- PEAKS Private Student Loan Program

First Associates Loan Servicing selected by PEAKS Private Student Loan Program

- Program launched in 2010 to provide financing for ITT Education Services students -

SAN DIEGO – June 5, 2012 – First Associates Loan Servicing, one of the country’s fastest growing consumer loan servicers, will service the PEAKS Private Student Loan Program.

Launched in 2010, the program provides financing for tens of thousands of students who attend the more than 100 ITT Technical Institutes in 37 states.

“The PEAKS trust was designed to provide $300 million in private student loans when it was created. It targets individuals who have demonstrated a commitment to complete their education but lack the resources. PEAKS helps students   pay for the reminder of the educational costs that federal and state financial aid or the students’ own resources won’t cover,” remarked Kevin Moehn, Program Administrator for the PEAKS program. “We recognize these students as people dedicated to realizing their dreams, paying off their obligations and working towards a responsible and enhanced financial future. We needed a state of the art loan servicing firm to help them reach their goals. First Associates has been a great partner for us”

First Associates operates under a different philosophy than legacy loan servicing firms, making it ideal for a wide range of markets, including student loans and other consumer assets classes. The four pillars of its approach are:

·         Manage information accurately. Use of a state of the art, communication platform that ensures the data on loan types and borrowers are correct from the start.

·         Use of multi-communication channels. Leverage nontraditional channels such as email and text messages in addition to more traditional voice mails to remind consumers of upcoming payments and other essential information. Customers can respond in the manner that’s convenient for them, while still having the option of talking to a live person.

·         Start early. Traditional service firms wait until the borrower is delinquent to start contacting customers, putting the loans on the fast track to 180-day delinquency. First Associates implements customized marketing campaigns during the grace periods to significantly reduce this trend.

·         Be nice. The firm’s expert customer service staff prides itself on courtesy and support for the borrower. In doing so, First Associates solves late payment problems before they cascade to default.

“The recent economic challenges put a giant spotlight on the inefficiencies of legacy servicing firms, most notably their reliance on outdated systems and processes under a highly bureaucratic mindset. This fosters a nice recipe for poor service and significantly higher delinquency rates,” said David Johnson, CEO of First Associates. “We feel that there’s a far better solution, one that recognizes the fact that loan servicing companies are – first and foremost – in the people business where they help individuals finance their education, successfully pay off their obligations and assist them in beginning a responsible financial future. We’re privileged to be servicing the PEAKS Private Student Loan Program under this mantra.”

About First Associates Loan Servicing

First Associates is one of the nation's premier consumer loan servicing firms and comprised of a team of professionals with a world class experience, first-rate knowledge and exceptional technology. . First Associates provides best-in-class servicing for titled assets and unsecured loan portfolios with a staff that is committed to providing the highest level of service to borrowers while maximizing lender and investor returns. More information is available at www.1stassociates.com.

Press Release - Jerry Corvino CTO

Former Oracle CIO joins First Associates Loan Servicing as CTO

- Jerry Corvino brings more than three decades of strategic technology, operations executive experience to firm -

SAN DIEGO – April 24, 2012 – First Associates Loan Servicing, one of the country’s fastest growing consumer loan servicers, announced today the hiring of former Oracle CIO 
Jerry Corvino as Chief Technology Officer.

He brings more than three decades of strategic information technology and operations expertise to the firm.


“We’re very excited to have someone of Jerry’s caliber onboard,” said David Johnson, CEO of First Associates Loan Servicing. “He will ensure that our technology platform continues to enhance our ‘service-first’ philosophy that has been critical to our industry leading performance across multiple asset classes.”

Click here to read entire article

Press Release - Jeanne Ray as VP of Call Center Operations

First Associates Loan Servicing hires Jeanne Ray

as VP of Call Center Operations

- Seasoned exec brings more than 15 years of operational, technical, project management experience -

SAN DIEGO – April 16, 2012 – First Associates Loan Servicing, one of the country’s fastest growing consumer loan servicers, announced today the hiring of Jeanne Ray as its Vice President of Call Center Operations.

She brings more than 15 years of seasoned operational, technical and project management experience – catering to both domestic and international customers – to the company.
“Our rapid expansion is in large part thanks to our focus in being customer-oriented and treating borrowers as people,” said David Johnson, CEO of First Associates Loan Servicing. “We wanted a proven leader that could ensure that capability is maintained as we continue to scale operations. We’re excited to have found Jeanne to help us do that.”

Click here to read entire article

Press Release- ALPS

First Associates Loan Servicing selected to service

Affiliated Loan Program for Students (ALPS)

- Trustee Deutsche Bank sought company to support $51 million portfolio, improve customer interaction, lower delinquency rates -

SAN DIEGO – April 10, 2012 – First Associates Loan Servicing, one of the country’s fastest growing consumer loan servicers, announced today that trustee Deutsche Bank selected the firm for the $51 million Affiliated Loan Program for Students (ALPS).

First Associates was chosen for its track record of improving customer service and performance of such portfolios while lowering the delinquency rates of borrowers.
“ALPS and First Associates will prevent many students from having to stall or completely forgo their educational and career aspirations,” said Ron Gemkow, Executive Director of Finance for the University of Chicago Booth School of Business. “Not only are they providing the necessary funds, but they are committed to developing relationships that ensure students remain in good financial standing. We know they are in good hands!”
ALPS delivers low-cost student loans without requiring established credit or co-signers. The program takes into account a participating school’s credit rating – instead of its cash – to meet a level of student financing that the school determines. Eligible schools incur no up-front expenses and do not need to commit to any minimum or maximum loan volume level. In addition to the University of Chicago, other prominent schools involved with the ALPS program include Columbia University, Cornell University, UCLA, Babson College, University of California at Berkeley and Vanderbilt University.

“The program is designed to help international and domestic students fund their education; something that many individuals struggle to do under any economic condition, but especially difficult during this current one,” said David Johnson, CEO of First Associates Loan Servicing. “We can be the catalyst in keeping these individuals in school by recognizing these borrowers as people first and focus on helping them realize their education and career goals while building a solid financial future. It’s not only how we differentiate ourselves, but also how we ensure lower delinquency default rates of loan portfolios than competing servicing firms.”  

Servicing Solutions You Can Count On

Servicing Solutions
for Asset Back Securities

Are you currently structuring a public or private ABC transaction? Looking for a TRUSTED company? For over 25 years First Associates Loan Servicing has been one of the nation's leading providers of full loan and lease servicing and backup servicing programs.

Currently First Associates is providing FULL or Backup Servicing for a multitude of classes including but not limited to:

AUTO / RV / Marine  

Private Student Loans

Unsecured Medical Loans

Green and Solar Technology

Timeshares / Vacation Lot Loans

Structured Settlements           

Mobile Homes                             

Many Esoteric Asset Classes

Whether you need a Hot, Warm or Cold back-up program, First Associates has the perfect solution for you. Find out how First Associates can help enhance your business needs.