The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: DSNews Share Save Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Print This Post October 14, 2013 471 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago in Featured, Media, Webcasts Servicers Navigate the Post-Pandemic World 2 days ago Is Rise in Forbearance Volume Cause for Concern? 2 days ago 2013-10-14 DSNews The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Featured / DS News Webcast: Monday 10/14/2013 Servicers Navigate the Post-Pandemic World 2 days ago DS News Webcast: Monday 10/14/2013 Previous: Security Bank of California Appoints Chief Compliance Officer Next: GSEs Update Servicing Guidelines to Prepare for CFPB Rules Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe
About Author: Colin Robins The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago April 2, 2014 656 Views Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago In a press release issued Wednesday by the Federal Housing Finance Agency (FHFA), the FHFA reported that Fannie Mae and Freddie Mac have completed 3.1 million foreclosure prevention actions since the two companies came under the government’s conservatorship in 2008. Foreclosure prevention actions include actions like loan modifications, refinances, and principal reductions.The actions by the two government-sponsored enterprises (GSEs) have helped more than 2.5 million borrowers stay in their homes, including nearly 1.6 million homeowners who have received permanent loan modifications.During 2013, Fannie and Freddie completed nearly 448,000 foreclosure prevention actions, 99,700 in the fourth quarter alone. The agency noted, “The majority of these allowed troubled borrowers to save their homes.”The FHFA report found that serious delinquencies dropped 7 percent during the fourth quarter of 2013 to the lowest level since the first quarter of 2009. The seriously delinquent rate fell to 2.4 percent.The rate for loans 30-59 days delinquent was 1.7 percent, a slight increase from the previous quarter. Loans delinquent for 60-plus days dropped .1 percent to 2.9 percent from the previous quarter.”Nearly half of all permanent loan modifications in the fourth quarter helped to reduce homeowners’ monthly payments by over 30 percent,” according to the FHFA.In the fourth quarter, approximately 31 percent of homeowners who received permanent loan modifications had portions of their mortgage balance forgiven.Since the beginning of the conservatorship, completed short sales and deeds-in-lieu totaled 552,000. The fourth quarter of 2013 saw more than 20,000 completed short sales and deeds-in-lieu.Foreclosure sales continued a downward trend, posting a 15 percent reduction in the fourth quarter, with foreclosure starts receding 3 percent. Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago GSEs Complete 3.1 Million Foreclosure Prevention Actions Demand Propels Home Prices Upward 2 days ago Related Articles in Daily Dose, Featured, Government, Headlines, Loss Mitigation, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: DS News Webcast: Wednesday 4/2/2014 Next: Construction Spending Increases in February Fannie Mae FHFA Freddie Mac Home Modifications Principal Reductions 2014-04-02 Colin Robins The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / GSEs Complete 3.1 Million Foreclosure Prevention Actions Subscribe Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site. Tagged with: Fannie Mae FHFA Freddie Mac Home Modifications Principal Reductions Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago
March 30, 2015 1,088 Views ING Mortgage-Backed Securities U.S. Supreme Court 2015-03-30 Brian Honea Previous: DS News Webcast: Tuesday 3/31/2015 Next: RoundPoint Expects Substantial MSR Purchase Growth to Continue in 2015 Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago U.S. Supreme Court Resurrects Investors’ MBS Case Against Dutch Bank Print This Post Related Articles Tagged with: ING Mortgage-Backed Securities U.S. Supreme Court Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The U.S. Supreme Court on Monday overturned a decision by an appeals court and granted a writ of certiorari to investors of ING Group, allowing them to continue with their class action suit against ING that accuses the Dutch bank of withholding information about the riskiness of its mortgage-backed securities in the run-up to the financial crisis, according to media reports.ING’s investors originally sued the bank in February 2009, accusing the bank of misrepresenting the quality of mortgage-backed securities in June 2007, just a few months before the financial crisis hit. The investors blamed ING for the huge losses they incurred when the housing market crashed in 2008.In September 2010, a judge in the U.S. District Court for the Southern District New York dismissed most of the plaintiffs’ claims in the case, ruling that the statute of limitations expired and that the plaintiffs waited too long to sue, the reports said.The lower court’s decision was later upheld in the Second Circuit Court of Appeals in November 2013, claiming that a “reasonably diligent plaintiff” would not have waited so long to sue in the case, according to reports. The Second Circuit Court also ruled that the plaintiffs failed to plausibly allege that ING knowingly made false statements regarding the mortgage-backed securities when the disclosure was issued in September 2007.The attorneys for the plaintiff, Marshall Freidus, sought a certiorari starting in June 2014 on the basis that the ING case was similar to another one pending in the Supreme Court in which investors sued Omnicare over material misstatements made in investment documents. The Second and Sixth Circuit Courts were divided on how to determine liability for statements made regarding investment documents which turned out later to false. The Supreme Court ruled in that case on March 24, overturning the Sixth Circuit’s decision that held Omnicare executives were liable. But the high court also remanded the claim and ordered the lower court to evaluate opinions based on what a “reasonable” investor can expect.Attorneys representing the plaintiff and defendant did not immediately respond to a request for comment.The case in the U.S. Supreme Court is Marshall Freidus et al. v. ING Groep NV et al., case number 13-1505. Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save in Daily Dose, Featured, News, Secondary Market Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / U.S. Supreme Court Resurrects Investors’ MBS Case Against Dutch Bank Subscribe
Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago How the Weather Influences Home Searches February 18, 2019 1,115 Views The Best Markets For Residential Property Investors 2 days ago Previous: The Great Fall of Mortgage Delinquencies Next: The Impact of Student Loans on Millennial Homebuyers Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Print This Post Stephanie Bacot is an experienced multimedia writer having created content for print, web, television, and more. She is the past producer of BIZTV, a national television network for businesses and entrepreneurs that reached more than 200,000 professionals. She has more than 15 years’ experience in healthcare marketing and was an advertising exec for Healthcare Journal of Baton Rouge, a trade publication focused on the healthcare industry, as well as the marketing director for a $5 million surgery center. Bacot is a graduate of Louisiana State University with a degree in Marketing and Communications. She resides in Dallas when she’s not pursuing her love of travel. About Author: Stephanie Bacot Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago It would make sense that home searches surge according to the weather but conventional wisdom is not always right- or at least not so black and white. According to Trulia’s recent data, as the temperature dips and prospective buyers in the nation’s coldest areas hunker down for the winter, a spike in searches where the weather is warmer and sunny can be expected. The report indicated that while most of us assume that retirees make up the bulk of seasonal searches, there are younger home searchers who may be attracted just as much by hot job markets as they are by warmer weather are looking to leave colder climates too. The data shows us that in reality, seasons don’t seem to have a large impact on our cold-to-hot search behaviors. In general, metros with the coldest winters do see bigger seasonal bumps—the deeper the freeze, the larger the bump in seasonal cold-hot searches. The percentage-point gap between August and December cold-hot searches is almost four times wider in places, where the average December temperature is 5 degrees Fahrenheit or below than it is among metros where the average temperature is “only” between 23 and 32 degrees Fahrenheit. According to the report, among cold-to-warm searches, 62.6 percent end up in a metro with an older median age than the source metro. At the same time, 71.2 percent of all cold-to-warm search activity ends up in a metro with higher employment growth. It also found that there is some overlap between the two destinations, potentially the best of both worlds for both groups of potential warm-climate seekers. These metros are “hot” with both an older population and stronger employment growth pulling in 45.6 percent of all search activity. For example, from August 2018 to December 2018, Green Bay, Wisconsin had the majority of all non-local search activity going specifically to warm metros in the south increasing from 14.4 percent to 18.3 percent. Of those searches directed at warmer areas, the jump in interest in Tampa, Fla. was particularly strong, going from 14 percent of warmer searches to 25.1 percent.Read the full report here. Related Articles Home / Daily Dose / How the Weather Influences Home Searches Home Searches job markets Trulia 2019-02-18 Donna Joseph in Daily Dose, Featured, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Home Searches job markets Trulia
Demand Propels Home Prices Upward 2 days ago Related Articles Home / Daily Dose / In Case of Emergency: Planning for Disaster Sign up for DS News Daily June 17, 2019 1,707 Views Servicers Navigate the Post-Pandemic World 2 days ago Print This Post About Author: Michelle Devore Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: What Investors Need to Know Next: Roadblocks Along the Path to Homeownership The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Disaster hurricanes Michelle Devore is the Systems and Process Manager for Padgett Law Group (PLG). Devore has been with PLG for morethan seven years, managing foreclosure,operations, client systems, and compliance.Devore has more than 11 years’ experiencein the default services industry, working on both the law firm and servicers side. In Case of Emergency: Planning for Disaster About Author: Marissa M. Yaker Share Save The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Disaster hurricanes 2019-06-17 Seth Welborn Subscribe One of the most stressful factors in conducting business is preparing for the unknown. According to statista.com, in 2018, there were 394 natural disasters worldwide. With the uncertainty of not knowing when a natural disaster is going to occur, it is crucial to have a business plan in place to ensure that your company is well-equipped. Preparing for the StormProtecting the interests of your clients, safeguarding employees’ lives and the firm’s property, and quickly recovering and resuming operations should be at the forefront of considerations when disaster strikes. When putting your disaster plan in place, some important items to consider are power and internet outages, data backup and recovery, the safety of your IT equipment, financial and operational assessments, staffing, communications with employees and clients, and communication with critical suppliers and vendors. When it comes to power and internet outages, a generator is a quick and easy way to get back up and running. If you are leasing a space, it is advisable to obtain written approval ahead of time to allow for the installation of a generator on a temporary or permanent basis. Also, ensure that you have reliable battery backups until the generator is installed.It is also recommended to have a call tree in place for when a storm is approaching, and verifying that all staff member’s phone numbers are updated on a regular basis. Setting up a staff hotline can also provide the means to communicate regarding office closures and other important information related to the disaster.Periodic testing and documentation of the results of your disaster recovery plan are essential to ensuring you have the proper controls in place should a disaster strike. This includes backing up your data throughout the year to ensure no loss of data, ensuring you have a plan in place for where your data center can be relocated in case of a natural disaster, and identifying an employee who would be willing and able to travel to the relocation site. Declaring an EmergencyNow that we’ve established some basic recommendations on how best to prepare for a natural disaster, we also wanted to discuss how an area becomes a Presidentially Declared Disaster Area, as well as the different types of declarations that can be made.The Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act) states, in part, “… all requests for a declaration by the President that a major disaster exists shall be made by the Governor of the affected State.”Such requests by the Governor of a state, or the Acting Governor in their absence, are made to the President through the appropriate regional administrator within 30 days of the incident’s occurrence. According to the Act, that period may be extended provided that a written request is made. Once the requests have been made, reviewed, and approved, the President can declare an emergency or major disaster (if applicable).An Emergency Declaration is made when the President determines that federal assistance is needed. Emergency Declarations supplement state and local or Indian tribal government efforts in providing emergency services, such as the protection of lives, property, public health, and safety, or to lessen or avert the threat of a catastrophe in any part of the United States.In contrast, a Major Disaster Declaration is used for a disaster or natural event—including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought, or, regardless of cause, fire, flood, or explosion—that the President determines has caused damage of such severity that it is beyond the combined capabilities of state and local governments to respond.Types of AssistanceNo matter which type of declaration is made, two different forms of assistance can be determined—individual assistance and/or public assistance. Both can also be used simultaneously. Individual assistance means assistance to individuals and households, which may include counseling programs, disaster case management, disaster unemployment assistance, or disaster legal services. Public assistance focuses more on assistance to state, tribal, and local governments, and certain private nonprofit organizations for emergency work and the repair or replacement of disaster-damaged facilities.The distinction between individual and public assistance is important, as occasionally servicers may issue moratoriums on loans, depending on which assistance has been determined. For homeowners, it is important to speak with their servicers after a natural disaster in order to determine if a moratorium will be issued. Typically, the moratoriums last 90 days, but they may occasionally be extended for longer periods of time.These moratoriums are extremely important to track, especially when it comes to Federal Housing Administration (FHA) deadlines, and tracking the new FHA deadlines upon expiration of the moratoria. It is vital to monitor each new deadline to ensure no deadlines are missed. Information regarding which counties have been declared a major disaster can be found on FEMA’s website, which should be checked multiple times daily in the aftermath of a disaster event.Once the storm has passed and any declarations have been made, it is important for the firm to assess the damage and resume operations. This includes ensuring that all staff is safe, that the firm’s office is secure and free from damage, and that power and internet are restored. If not, service requests must be escalated to the proper authorities and it must be confirmed that it is safe for employees to travel to the office.Resuming OperationsDuring the resumption of operations, it is key to have a clear line of communication with the case-management system administrator to identify, track, and manage affected properties within the firm’s caseload. Having back-end access to the firm’s case-management system allows for the development of customizable internal and client-reporting needs. Creating customizable reporting that factors in affected counties, declared disaster areas, clients, and investors allows for seamless communication and follow-up with clients. Another effective way to track and manage the workload is by creating custom event sequences within your internal case-management system. Inspection and condition of the property prior to conveyance to an investor is key, which requires diligent followup and communication with the client(s) as to the affected properties. Investment in sophisticated integration software between the firm’s case-management system and the client’s system could be vital in allowing your office to receive real-time updates from the clients as to the directive under which they wish to proceed with the affected property. At the end of the day, no one can plan 100% for every situation, but we can certainly try to be as prepared as possible. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Loss Mitigation, News, Print Features Marissa M. Yaker, Esq. is an attorney with Padgett Law Group (PLG). Her practice is primarily focused on creditor’s rights and foreclosure, an area of law in which she has actively practiced for five years. Yaker sits on the Florida Bar’s Grievance Committee of the Fifteenth Judicial Circuit and recently served as a contributing attorney on a United States Supreme Court Amicus Brief on behalf of PLG. Yaker is licensed in the state of Florida and is based out of PLG’s Fort Lauderdale, Florida, office.
The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Investment, Market Studies, News, Print Features Previous: FinTech’s Influence on Home Financing Next: Why Did Mortgage Delinquencies Rise? Servicing Success, One Step at a Time Tagged with: Banks Finances Servicing Banks Finances Servicing 2019-07-22 Seth Welborn Print This Post Demand Propels Home Prices Upward 2 days ago July 22, 2019 1,951 Views Subscribe Related Articles Courtney Thompson is the SVP and Director of Default Servicing Operations for Flagstar Bank. Thompson is responsible for all consumer default assets at Flagstar, including default call center and the design and operation of Flagstar Bank’s component default servicing oversight model—including the management of the specialty servicing vendor partners as well as Flagstar’s crossfunctional oversight team. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Servicing Success, One Step at a Time The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save About Author: Courtney Thompson The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily With default volumes reaching historical lows, servicers nationwide are looking to get their houses in order by enhancing control environments, tightening processes, and redesigning or implementing new technologies to manage operations more efficiently while mitigating the risk to scale quickly in the next market downturn. While there is a massive push in the industry to tech-up with process automation, artificial intelligence, robotics, big data solutions, and the latest and greatest workflow tools, the cost to implement is high, the business requirements are complicated, and people with the right skills required to implement them are either non-existent or in excruciatingly high demand, especially with the default workforce steadily shrinking to meet operational bottom lines. We have learned through trial and error that sometimes the high-cost of technological enhancement is the best answer. For instance, after conducting a deep dive into all of the available end-to-end loss mitigation options for better consistency and control in the loss mitigation workflow, Flagstar was unable to find a solution that met our goals. As a result, we are committing substantial resources to build our a proprietary tool that will be nimble enough to keep up with the bank’s conservative perspective on loss mitigation requirements, while maintaining the quality of a thorough evaluation with a robust audit package to meet regulatory needs in advance of a request. We anticipate that our solution will eliminate 10 days from the final conversion process but remain so user-friendly that even I could underwrite a loss mitigation application. Learning From the BestIn the stability that a lower volume environment created, the Flagstar default team swapped our jackets for cardigans and slippers and took the time to develop better solutions to manage our bottom line. Taking a page out of philosophical history (also a luxury in the mortgage servicing business), we leveraged Occam’s Razor and tried our best not to overcomplicate it. Academically credited to William of Ockham, a 13-14th-century friar, philosopher, and theologian, Occam’s Razor supposes that the best strategy among competing hypotheses is the one with the fewest assumptions. Others agree. Aristotle is first credited with the idea that, when capturing the inherent value in the simple solution, “we may assume the superiority, other things being equal, of the demonstration which derives from fewer postulates or hypotheses.”The forefather of infectious disease, Theodore Woodward, once stated, “When you hear hoofbeats, think of horses, not zebras.” Albert Einstein’s perspective? “Everything should be made as simple as possible, but not simpler.”Said another way, the simplest solution is often the correct one. The best news? We found that adopting this strategy in default servicing operations is a veritable gold mine. We looked at the rules, the people, our P&L, our service providers, and our customers. We evaluated expensive technologies and cringed at implementation calendars. We scratched our heads. And then, we endeavored to define a series of small wins—simple changes—that have yielded significant returns. Keep It SimpleMost significant among the small wins in our new strategy was connecting our two favorite groups of lawyers—our internal legal department and our business line foreclosure/bankruptcy attorney network (the “business line attorney network”). At many servicers, the foreclosure and bankruptcy departments carry the responsibility to manage the contested foreclosure or adversary proceedings, by leveraging the business line foreclosure and bankruptcy attorney network managed by the business. For matters that fall outside the general contested rubric, the bank’s in-house legal department will review the matter to determine whether its intervention of a file is warranted—based on risk factors such as a proactive claim against the bank. If the matter meets the criteria and is escalated, then the legal department will take jurisdiction and manage the matter through their process. In turn, the legal department appropriately leverages their network of attorneys to manage these files—these attorneys are typically not in the business line foreclosure and bankruptcy attorney network and carry a multi-state or national presence. Although this strategy generally works, we learned that it was not the best approach in all cases.When we evaluated our litigation expense budget and the litigated matters portfolio for default loans, we found it largely consisted of cases arising from a foreclosure or bankruptcy matter, and the crux of that litigation was residing within the foreclosure or bankruptcy matter itself—comprised of an attempt to avoid the underlying foreclosure. We realized that, instead of leaving the foreclosure avoidance matters with the business line attorney network firm managing the actual foreclosure or bankruptcy, we were moving them to another law firm—one residing in the corporate legal department network. Typically, these firms are used to charging the hirer hourly rates to support the management of matters of much greater diversity and complexity (requiring independent research, and time spent by associates), and of much higher operational, reputational, or financial risk to the bank. In partnership with our trusted legal department partners, we posed a simple hypothesis, which becomes a key cost savings initiative that was put into action through a pilot program wherein we believe, conservatively, that we will reduce our litigation expense budget by at least 30% for these matters within the next year. The Case for Cost SavingsWhat if we leveraged the line of business attorney network (the litigation department at an assigned foreclosure firm) instead of the corporate legal department network (frequently national firms, with enhanced cost structures)? Said another way, what if we did nothing and left the cases where they were? Total timeline to implement: Hours. Comprised of coordinating the right partners both internally and externally, and conducting the steps necessary for the legal department to leverage the business unit attorney network. Total cost to implement: $0The total effort on behalf of the BU: NothingKey factors leading to the success of this program include: It is not only what you know, but who you know that is important in matters having a geographic origin. Default matters are sensitive, deserve compassion, and are frequently litigated in the counties and municipalities where our customers live. Banks and servicers are outsiders, and when it comes to default, especially, we are often viewed as the bad guy. Frequently, the outcome of a matter is dependent not only on the merits of a case, but also on geography, local practice, judicial disposition, judicial appointment practice, and many other characteristics tied to the community wherein they are litigated. Firms in your business foreclosure and bankruptcy network have inherent ties to the states, communities, and municipalities in which they operate. Compared to a firm with a multi-state or national presence who may either hire a local attorney to achieve the above objectives (thus increasing the cost); or send a young associate to a neighboring state where they happen to have a bar card to manage the matter in an unfamiliar court—which can be detrimental and undermine the increased expenditure. The firm in the business line attorney network has both a history with the file and a vested interest in the litigation resolving well. Foreclosure avoidance lawsuits, more often than not, arise out of an attempt by a borrower to delay what is often inevitable, the loss of their home through a foreclosure process. Given the fact that real harm to borrowers in servicing is rare, frequently borrower’s counsels are left with the only strategy they have to accomplish their clients’ goals. They challenge the veracity of the underlying foreclosure process itself, whether at the servicer or at the foreclosure firm. We have learned that the most interested party in defending a compliant foreclosure, is the party conducting it—the foreclosure firm used in the underlying foreclosure action. The foreclosure firm is responsible for ensuring under their state’s legal framework and federal law that files are in ship shape at every juncture of the process. Who better to address challenges to the underlying action, then the firm that did the doing? Additionally, the business line firms are incentivized to succeed because their business depends on client service to generate referrals. With low default volume, the competition is fiercer than ever, and the business line firms are keenly aware that the stakes are high. Would you rather pay a legal expert $20,000 to resolve your lawsuit, or a foreclosure legal expert $10,000 to resolve your lawsuit? This is neither news nor a shocking revelation. Your business line foreclosure and bankruptcy attorney network are regulated by governmental agencies requiring caps on the fees and expenses associated with litigation. Their rates are fundamentally lower. In a high-level cost analysis of our legal spend in 2018, we found that, for an average foreclosure avoidance matter, we would spend between $15,000 and $25,000 on legal fees (on matters not going to trial). Applying the same files to the capped foreclosure/bankruptcy firm hourly rate structure would yield at 30-50% savings, by simply keeping the file with the local experts—the business line firms. Assuming you close 100 matters in a year, this initiative could save you $500,000 annually, with zero overhead associated with changing this strategy. Et cetera. While the straightforward math and the limited implementation cost yields a direct financial benefit to the bottom line, there are some potential intrinsic benefits to leveraging the business line attorney. We can also hypothesize cost savings in the approach to file management. Namely, your foreclosure and bankruptcy network firms are in the business of practicing foreclosure and bankruptcy law—it is what they know. Further, in any given state, this also means that you are allowed to have a much higher expectation of efficiency with the management of your matter—this is what they do. Your business line foreclosure and bankruptcy attorney network should know the players (both plaintiff’s counsel, and the judiciary), have the experience with the right arguments to plug and play into your matters (brief banks), and have previously synthesized almost every legal issue that could be presented. In short, you should not be billed for excess legal research, motion practice, and brief writing. Finally, and the key to the underlying resolution of these matters, they tend to have a higher level of expertise with investor/insurer level requirements—they recognize the stakeholders in the case. The business-line firm’s operations are evaluated by these requirements, and thus, the firm’s ability to maintain a viable practice depends on this knowledge. As more than half of these matters resolve with some sort of loss mitigation solution, this is important. In potential contrast, the legal department networks are frequently comprised of lawyers from national firms, with a recognizable name, with smart and capable lawyers from notable law schools; they will likely do a good job. These service providers are legal experts, no doubt. However, because they are typically used to managing larger, high-stakes, high-dollar matters, they are not spending their hours becoming experts in state-level foreclosure matters, developing the brief banks, or developing a relationship with the local bar. Moreover, it doesn’t make financial sense for these firms (with multiple locations, and generally higher paid associates), to reduce their hourly rates for less complex matters. There are cases that come through the door that will be best managed by these firms and some that aren’t. Knowing the difference is key.In philosophy, a razor is a rule of thumb that allows one to avoid unnecessary actions. In default servicing, the best solution is often the quickest solution, which has a clear potential of mitigating risk and reducing cost. We would suggest “doing nothing” like us, and adding your business line foreclosure and bankruptcy firms to your legal department network.
Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Investment, News April 29, 2020 1,411 Views Tagged with: Forbearance Housing Market Today’s Mortgage Relief May Be Tomorrow’s Market Confusion Servicers Navigate the Post-Pandemic World 2 days ago Forbearance Housing Market 2020-04-29 Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Previous: Lender Agrees to Pay $15.06M to Resolve Allegations Next: DS5: How Servicers are Adapting Tech to the Crisis Demand Propels Home Prices Upward 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago With more than 6% of borrowers in forbearance plans on their mortgage loans, the question on many housing professionals’ minds is what’s next?More than 3.4 million homeowners will benefit from temporarily suspending their mortgage payments, according to data from Black Knight, but the details of how and when they repay those missed months of payment are still being ironed out. In order to help borrowers as quickly as possible in this unique and sudden financial crisis, the federal government is extending forbearance for any borrowers of government-backed loans who claim financial hardship. Borrowers did not have to undergo a lengthy application process. As such, the task of working with individual homeowners to determine the best approach to repayment will be left for later. Thus, “the real chaos won’t start until the pandemic passes,” stated an article in Bloomberg this week. Servicers will be dealing with a large volume of borrowers who need to work out repayment plans, while also working to ensure they are following new requirements set by the Federal Housing Finance Agency, Fannie May, or Freddie Mac. Meanwhile borrowers may be facing confusion or misinformation regarding their loan terms following forbearance.Servicers are already dealing with an uptick in call volumes. Thus far, Mr. Cooper Group Inc., told Bloomberg it has bolstered its servicing centers by 40% since the pandemic ensued, and the company’s website encourages borrowers to apply for assistance online due to the “high volume of calls we are now seeing and anticipate for the foreseeable future.” Michael Stegman, senior research fellow in the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis, told Bloomberg, “expect even more chaos when forbearance ends.” Already, the Federal Housing Finance Agency is working hard to dispel any rumors or worries that borrowers will have to repay their missed mortgage payments in a lump sum at the end of their forbearance period. Fannie Mae and Freddie Mac will require servicers to set up a repayment plan or loan modification before the end of the forbearance plan if the borrower’s financial hardship has ended. The loan modification could lower a borrower’s monthly mortgage payment and may add missed payments on to the end of the mortgage loan. In cases where it is necessary, forbearance may be extended, according to FHFA. The Federal Housing Administration will allow missed loan payments to become a second lien for borrowers that they will repay when they refinance or sell their home. The FHFA may announce a similar plan. There is the potential for servicers to become overloaded with loan modification applications similar to in the 2008 financial crisis. About Author: Krista F. Brock The Best Markets For Residential Property Investors 2 days ago Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Home / Daily Dose / Today’s Mortgage Relief May Be Tomorrow’s Market Confusion Print This Post Demand Propels Home Prices Upward 2 days ago Subscribe
RELATED ARTICLESMORE FROM AUTHOR Buncrana Town Council meets this evening to select a new mayor, with current Deputy Mayor Michael Grant expected to be chosen.The agendas also provides for the co-option of a new Sinn Fein Councillor to replace Deputy Padraig Mac Lochlainn, but we understand the party has not yet decided who that will be.The first item on the agenda for tonight’s meeting is the filling of the causal vacancy following the election of Padraig MacLochlainn to Dáil Eireann.However, we understand that Sinn Fein Cllr Mary Kelly will seek to have that deferred, with no final decision on who will be co-opted onto the council. Discussions are ongoing, but even if a preferred candidate were to be identified ahead of the meeting, they would still have to go before a convention.The second item on the agenda is the election of a new mayor, with the expectation being that Deputy Mayor Cllr Michael Grant will be unanimously selected to see out the remainder of this term. That possibility is reflected in the third item on the agenda, the filling of any “consequential vacancy”.So far, we understand there have been no discussions on a new Deputy Mayor ; it’s though members may meet informally ahead of this evening’s meeting to agree an approach before the special meeting gets under way. Twitter Pinterest NPHET ‘positive’ on easing restrictions – Donnelly Google+ WhatsApp 448 new cases of Covid 19 reported today By News Highland – March 22, 2011 Help sought in search for missing 27 year old in Letterkenny Previous articleDonegal’s woodlands in line for major awardNext articleDeputy Pringle hopeful that Bay View Hotel can be sold News Highland Three factors driving Donegal housing market – Robinson Twitter Pinterest News Buncrana Town Council to select new Mayor this evening WhatsApp Facebook Facebook Google+ Calls for maternity restrictions to be lifted at LUH Guidelines for reopening of hospitality sector published
Google+ By News Highland – August 11, 2011 Previous articleBishop Boyce hits out at reports that hundreds of children were abused in RaphoeNext articleHSE putting more counselling resources in place ahead of Raphoe audit publication News Highland Google+ Newsx Adverts Facebook Pinterest The Chair of Donegal County Council’s Roads Policy Committee is seeking an urgent meeting with Transport Minister Leo Varadker to discuss the suspension of a number of road projects in the county.Cllr Jack Murray says the manner in which news of the suspension broke earlier this week was disgraceful, with councillors and officials hearing the news on Highland Radio. Then, he claimed, when they rang the NRA, they were given different answers depending on who they spoke to.Cllr Murray says he’ll be asking the minister to reverse his decision, but isn’t anticipating a positive response…………….[podcast]http://www.highlandradio.com/wp-content/uploads/2011/08/jackm3pm.mp3[/podcast] WhatsApp Facebook Calls for maternity restrictions to be lifted at LUH Guidelines for reopening of hospitality sector published Twitter LUH system challenged by however, work to reduce risk to patients ongoing – Dr Hamilton Twitter NPHET ‘positive’ on easing restrictions – Donnelly WhatsApp Three factors driving Donegal housing market – Robinson RELATED ARTICLESMORE FROM AUTHOR Council Roads Committee Chair seeks urgent meeting with Varadker Pinterest Almost 10,000 appointments cancelled in Saolta Hospital Group this week
WhatsApp DUP and Sinn Fein to blame for radiotherapy postponement – McGimpsey Almost 10,000 appointments cancelled in Saolta Hospital Group this week Calls for maternity restrictions to be lifted at LUH Google+ Pinterest Facebook Twitter Three factors driving Donegal housing market – Robinson WhatsApp Twitter News LUH system challenged by however, work to reduce risk to patients ongoing – Dr Hamilton Pinterest Comments made by Sinn Fein’s Martin McGuinness were tantamount to incitement to hatred, UUP health minister Michael McGimpsey has said.Speaking to the BBC, Mr McGimpsey said Mr McGuinness was wrong to say his decision to postpone plans to build a radiotherapy unit at Altnagelvin Hospital was “sectarian”.Michael McGimpsey said the DUP and Sinn Fein were responsible for health budget cuts.He claimed that the DUP finance minister, Sammy Wilson, had failed to respond to a business case for Altnagelvin Hospital which he had given him last October.Mr Wilson also refused to commit to visiting Derry City Council to discuss the planned cancer unit.Last month, Mr McGimpsey made the decision to postpone construction, saying his budget for capital spending was £500m short. Facebook RELATED ARTICLESMORE FROM AUTHOR Google+ Previous articlePSO subsidy for the Derry to Dublin air-link will not be returnedNext articleMan cleared of sexually assaulting 6 year old in Derry News Highland By News Highland – April 7, 2011 Guidelines for reopening of hospitality sector published Business Matters Ep 45 – Boyd Robinson, Annette Houston & Michael Margey