Jane Mason is CEO/founder of Clarifire and creator of CLARIFIRE®, a disruptive solution transforming processes through workflow automation.
Earlier this summer, deadly floods in Texas caused more than $20 billion in damage, overwhelming agencies and organizations responsible for providing relief to thousands of homeowners. And yet, it was only one of 15 billion-dollar weather disasters so far this year.
When homeowners need help after a flood, tornado, hurricane or wildfire, financial institutions are under pressure to act fast—and to get it right. The problem is that traditional methods of response aren’t keeping pace with the growing frequency and severity of disasters.
For mortgage servicers in particular, this problem is very real and growing more pressing every season. But there are several useful strategies that forward-thinking servicers are employing to overcome this challenge, and they serve as lessons for other business leaders as well.
When Chaos Hits
Mortgage servicers do much more than handle borrower payments. When a borrower is experiencing financial trouble, servicers must reach out and determine if they qualify for assistance and help them avoid permanent financial hardship. If the borrower is impacted by a natural disaster—something no one can fully prepare for—the job becomes infinitely harder.
A disaster can knock out power, internet and phone service, and make borrower communication almost impossible. It can destroy the borrower’s documents and records, too, including paperwork they’ll need in order to prove hardship. Meanwhile, servicers must collect forms, validate information, comply with loss mitigation requirements and submit claims to investors. As a result, disasters often create bottlenecks with borrowers waiting in limbo.
Making matters worse, many servicers still rely on manual tasks and outdated methods like phone calls and spreadsheets, which are slow and expensive. This leads to missed connections, processing delays and errors—and massive frustration for all parties. If servicers don’t act quickly enough, they face penalties and reputational harm. Yet many still depend on processes and systems that slow them down when speed matters most.
Putting Automation To Work
Over the past decade, workflow automation has been helping servicers tilt the odds back in their favor.
At the core, workflow automation is technology that replaces manual steps with structured, business rules-based processes. It works by mapping out every step in a servicing process and digitizing and streamlining key tasks, such as borrower outreach, document intake and claims management. It sets up rules for when and how each step should happen, so instead of having staff check spreadsheets or investor guidelines for what to do next, every step is triggered automatically.
Workflow automation can also improve the borrower’s experience. Instead of waiting for documents to arrive by mail, homeowners can log in to their servicer’s system by phone or computer, answer a few questions and upload documents directly. Afterward, the system automatically routes the borrower’s loss mitigation application (or request for help) to the right people at the right time. Business rule decision trees guide each step based on the borrower’s responses, loan type and investor rules.
This removes guesswork and ensures consistency. Everyone follows the same process, every time. Dynamic workflow automation adjusts to each borrower’s scenario and data presented, creating clarity and better results.
Already, this technology is changing disaster response in the mortgage servicing industry. Instead of calling when a disaster strikes, borrowers automatically receive a link to a secure portal, where they are guided through eligibility questions and upload required documents. Behind the scenes, the servicer’s system automatically triggers next steps, and borrowers receive answers in a few minutes instead of days or weeks.
Building A Framework
Financial institutions deal with uncertainty every day, but disasters bring a different kind of disruption. The usual systems break down and delays multiply. However, institutions that build a disaster response framework can move faster, reduce friction and deliver relief when it matters most.
The first step is mapping out the end-to-end processes that activate when a borrower is impacted by a disaster. That may start with a readiness audit that seeks to answer a simple question: How quickly can we act upon borrowers’ needs during a crisis event? From there, document how information moves throughout the organization. This creates visibility into where breakdowns are likely to occur.
Second, establish clear communication channels and escalation paths. During a disaster, response time is everything. Servicers need a predefined way to connect impacted borrowers to the right teams quickly. That means aligning operations, compliance and customer care under a single playbook.
Finally, begin layering in automation where it will make the biggest difference. Even automating basic data collection or document intake can reduce friction during critical hours. If you treat automation as a strategic capability—not a patchwork of tools and applications—you are better equipped to scale quickly when the next disaster hits.
How To Start Leveling Up
Regardless of the systems financial institutions use, technology should never replace the human touch. During a disaster, emotions run high. Borrowers may be scared, displaced or unable to access basic services. Automation alone is not a solution, but it can enhance the level of care an organization delivers by removing routine friction so staff can focus on meaningful borrower interactions.
Servicers also don’t have to automate everything at once. For instance, they can start by automating borrower communication triggers. Instead of manually sending emails after a disaster declaration, servicers can create an automated alert that notifies affected borrowers and provides links to available resources.
Additionally, servicers can digitize document collection by using web forms or portals instead of sending paper packets by mail. When combined with automated borrower outreach, collecting information digitally through the devices borrowers use every day can accelerate relief and create structured data that future automation tools can build upon.
When disasters strike, workflow automation gives financial institutions—and anyone else who might be affected—a real advantage by replacing guesswork with structure. It reduces delays without increasing risk. It gives staff the support they need to make fast, informed decisions. And it turns confusion into action, which is exactly what borrowers need most during hard times.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?