Solutions for Default Servicers

A specialized Hope for Homeowners outreach program has been launched by Lend America, an announcement today stated. Institutional investors, including Wall Street banks and hedge funds, can quickly recapture principal from their non-performing residential mortgage portfolios. Lend America employs more than 300 mortgage specialists for high-touch originations.

Response Analytics Inc. said today that its Distressed Portfolio Management Solution applies sophisticated modeling and optimization capabilities to a lender’s loan performance history to accurately calculate a mortgage portfolio’s hold-to-maturity value, irrespective of the number of distressed loans it contains, based on potential cash flow. It also recommends an optimized treatment option within the loan pool to optimize best cash flow.

Integrated Mortgage Solutions issued a press release today indicating that its loss mitigation package now enables online document signatures. A meeting is coordinated with the borrower and a notary to have the documents notarized via electronic signature pad or the actual paper documents.

Stewart’s Home Retention Services announced today that its modification services now include digital signature capabilities.

A statement today from Veros Real Estate Solutions said its VeroVALUE REO is designed to provide automated valuation models specifically for real estate owned. The service saves significant time and expense when compared to broker price opinions. Among features that improve the accuracy are up-to-date listings for recent notices-of-Default, notices-of-trustee sales and foreclosure sales and rates.

Veros also said collateral integrity analysis report analyzes, detects and identifies properties and markets with a high risk of early payment default, fraud and overvaluation risk. The report also includes a transaction history and associated property information.

LoanCare Servicing Center Inc. is using Wolters Kluwer Financial Services’ document services platform for loan modifications, according to a news release today. The modification packages are created base on investor requirements and digitally delivered to borrowers for review, e-consent or e-signature.

DepotPoint Inc. reported last week that its TrackPoint online workflow application suite now includes a short-sale module that tracks the collection of multiple relevant documents and critical information.

The U.S. Department of Housing and Urban Development issued Mortgagee Letter 2008-32 indicating FHA servicers may pursue loss mitigation while a borrower is in bankruptcy. Once a bankruptcy notice is received, the mortgagee must notify the debtor’s counsel that loss mitigation may be available. HUD noted enough information is usually available on public bankruptcy documents to make a decision about qualifying for a modification.

The mortgagee can work with the debtor’s counsel prior to dismissal or discharge, but it is recommended that the bankruptcy trustee be copied on all correspondence. If the bankruptcy was filed without an attorney, HUD recommends passing the loss mitigation information through the bankruptcy trustee.

Members of the Federal Home Loan Bank of San Francisco can now submit applications for the Homeownership Preservation Subsidy matching grant program. Funds totaling $10 million can be used to refinance or restructure a mortgage. The FHLB will grant $1 in funds for every $2 provided by the member up to a $25,000 maximum per eligible borrower.

“Tens of thousands” of foreclosures have been prevented as a result of advertising enabled by material financial support from the mortgage and financial services industries, NeighborWorks America said last week. With $74 million in donated ad time, more than 100 million households have been exposed to ads through television, radio, Internet and outdoor ad campaigns.