Changing the Playing Field for Loan Servicing, Loss Mitigation and Default Administration

Size: px
Start display at page:

Download "Changing the Playing Field for Loan Servicing, Loss Mitigation and Default Administration"

Transcription

1 Background The loan servicing business is undergoing major scrutiny with operating, profitability including a run-away cost to service and regulatory compliance pressures. With the Dodd Frank legislation, the recent uncovering of foreclosure documentation problems, a period of time where the most loans ever in default has occurred and where the overall loss mitigation process is ill equipped to deal with all of this, its time to change the playing field, possibly forever. Unfortunately the silo structures and processes that many servicers have, contribute to many of the issues being faced today. Poor communications across servicing teams, data accuracy issues, aging loan servicing systems and loss mitigation processes that require heavy staffing with no economies of scale are all issues contributing to the run away costs. Meanwhile, the effectiveness of loss mitigation efforts is proving to be less than acceptable. A fundamental concept embedded in this change the playing field effort is that a box car approach, where all loans are treated the same, especially during delinquency, has never really worked and definitely does not work in the current credit downturn. Changing the Operating Processes Most loan servicing operations are structured by functional skills and not by process or risk attribute. With the credit and regulatory challenges faced by most servicers, as well as, the negative characterization of loan servicers by most consumer groups, it s likely the final bell for the loan servicing platform of the past. There are financial factors that may also cause a redesign of the traditional servicing platform. Run away servicing costs and current servicing compensation arrangements that do not deal effectively with default servicing activities are a big issue. The GSE proposals for changing servicing fee structures will likely force loan servicers to replatform or even depart from the business. All of the proposals will have a negative impact on mortgage servicing rights (MSRs) recorded on a servicer s balance sheet. Several issues that investors, servicers and regulators need to consider when recasting servicing compensation include: Servicing compensation that is basis point driven contemplates that the servicer was part of the loan origination process and should have a stake in the loan Helping you climb to success 1

2 result. Given that many originators transfer servicing the ultimate servicer does not have any accountability to the underwriting of the loan. Many servicers are in a fee for service business and will execute loan services that they are compensated for. The historical concept of not paying fees while a loan is in default is flawed for a servicing business (no servicing fees and usually no upside for performance). A fee for services concept would definitely incent loan servicers to execute critical steps that may be time consuming, costly and/or require more experienced/expensive loan counselors. Fees that are lower than cost (some of the proposed fee arrangements) will cause the accountants to require a loss on such an executory contract to be recorded. This issue will bring about a renewed interest in identifying the fully loaded cost (not marginal cost as often used in MSR calculations) of loan servicing. MSR valuations will decline significantly under most of the proposals. Along with the Basel III implications of caps on MSRs counting towards capital for banks, these changes in the financial aspects of loan servicing will cause major changes in who and how mortgage servicing is handled. Notwithstanding the changes noted above, loan servicers will need to do certain things better and differently than they have in the past. Improvements must include being able to seamlessly determine the borrower s up to the minute financial status, having all servicing personnel involved with that borrower communicating and on the same page and being able to make timely decisions as to the best approach to keep the borrower making payments. The current servicing platforms are ill prepared to be able to know/receive on-going borrower financial information, credit status and collateral value. Unlike the past where such data was generally not updated after the loan origination date unless a collection problem occurred ongoing credit analysis of the borrower and the collateral will be critical to effectively reduce loan losses, identify proactively which borrowers are at risk and have a workable plan for loss mitigation. Data and systems are available to execute this ongoing credit/collateral analysis but the loan servicers have not adopted this policy/process. Could it be that the current servicing compensation mechanisms actually work against servicers making the necessary technology investments? Changing the cost model is also a critical element. The servicing business does demonstrate that there are economies of scale, however, too many people, processes and Helping you climb to success 2

3 aged technology cost the servicer too much. New disclosure requirements, especially for securitized pools of loans, will cause costs to increase. Any spikes in delinquency clearly have cost servicers significantly. So the pressures on loan servicing costs are going to continue to push such up unless some fundamental changes are made. It s clear that today s loan servicing platform will have to be realigned. The mortgagor/customer activities will be performed by a cradle to grave team that meets all of the mortgagor s needs whether collecting payments, providing tax payment data, or helping restructure the financial balance sheet of the mortgagor. This realignment will create a single point of contact between the servicer and the borrower. Practically, this might not be a one to one person relationship but a relationship between the borrower and a team of experts all informed about the borrower s status. So instead of servicing personnel affecting an individual mortgagor being in different departmental lines they are likely to be in customer-centric teams. Such teams will handle every aspect of the customer s mortgage normal activity and default, collection and modification/work out activities. Hence all customer facing personnel will perform processes that are part of a continuous credit cycle that involves really knowing your customer. Better transparency in customer facing systems showing clear status of the relationship payments received, actions being taken by the servicer, pending modification or foreclosure activity, etc should all be clearly displayed via the web, call in lines, etc. New opportunities afforded by this structure include having originators on the customer centric team that can monitor the customer s modification, refi, new mortgage and other lending needs the concept of a borrower for life begins to become reality. Investor reporting may be an independent team that provides information to the investor and compliance oversight to assure the investor s interests are being managed. Cash processing in most banks is done centrally anyway. As most loan servicers are now owned by banks a separate cash processing units in the servicing area is no longer cost effective. Hilltop Advisors has conducted many servicing ass6essment and redesign engagements and have identified a number of reasons why servicing operating costs are out of control. The following reasons impact most servicers: Helping you climb to success 3

4 using a box car default servicing methodology where every at risk loan is treated the same will cause collection and work out costs to be higher than necessary, Pooling & Servicing Agreements that are not consistent relating to servicing requirements default, trigger events, reporting, etc, customer service processes do not include specialists, too many handoffs in the customer process to impact cost and time loss, too many cash accounts for investors, NPV calculations not being computed correctly or results not being used in making timely loss mitigation decisions, run away process costs not identified separate from ongoing costs, outsourcing vendor assessments not being completed to assess performance or service level agreement compliance, technology is not being fully utilized or add ons are not installed, foreclosure claims are not well documented, no follow up is completed on denied or partially denied claims, etc., the longer the timeline the higher the costs go and the number of costly errors made increase (foreclosure, short sale decisions, REO marketing decisions, etc), repurchase claims and/or MI rescission issues are not being resolved properly. Changing the design of the basic loan servicing processes should focus on increasing accountability, break down of traditional silos, enhancing QA/compliance efforts and addressing run away costs. Depending on the nature of the loan servicing operation (structure, number of locations, departmental operating format, technology applications, etc), there are often many other findings that can be identified based on our experience. This redesign effort is not simply streamlining or automating processes, nor is it a shift in personnel alignment this change in the loan servicing, loss mitigation and default administration platform is a major change in the way loan servicers have historically approached their business. Based on our loan servicing experience, this operational platform change will not be easy for most loan servicers. Such a change process will require an informed look into the type of servicing business, the loan servicing portfolio, assessing the management team, operating processes, costs, regulatory compliance, data usage/accuracy, and the usage/deployment of technology applications. Helping you climb to success 4

5 A change in the loan servicing playing field requires defining customer differently. Historically, servicers either viewed the borrower or the investor as their customer. The future definition needs to be multi-faceted, since there has always really been a multitude of customers i.e. the borrower, the investor, the security holder, the master servicer, trustee, regulators, etc. Teams will need to be formed around the new definition of customer. Correspondingly, servicing functions will need to be realigned to meet the needs of all these customers. Further, the customer definition will likely be impacted by the stronger requirements for quality assurance and regulatory controls. Customer accountability will also be important to establish i.e. who will ultimately answer to the customer from within the servicing organization. It is clear that we have arrived at a point where regulatory oversight of the loan servicing business will increase significantly, where servicing standards will be set by regulators and not investors, and where borrowers will have the maximum amount of protection. The servicing playing field has changed, likely forever, and servicing management needs to make the people, process, and technology changes that are demanded by this new/more visible loan servicing environment. Authored by Geoffrey A Oliver, CPA, Certified Mortgage Banker, CEO of Hilltop Advisors, LLC (a Financial Services consulting and accounting advisory firm). He may be reached at and website is Helping you climb to success 5

Hilltop Advisors, LLC. Loan Review Services. Presented by: Hilltop Advisors, LLC (an accounting advisory and consulting firm)

Hilltop Advisors, LLC. Loan Review Services. Presented by: Hilltop Advisors, LLC (an accounting advisory and consulting firm) Loan Review Services Presented by: (an accounting advisory and consulting firm) For further information about our proposal or the company, please contact: Geoffrey A. Oliver CPA, CFF, CMB CEO & Managing

More information

The Fact Based Loan Portfolio Analysis

The Fact Based Loan Portfolio Analysis Loan Modifications and Troubled Debt Restructuring A New Set of Challenges with the Allowance for Loan and Lease Losses (ALLL) by Geoffrey A Oliver, CPA, CMB While we are in a credit cycle that is challenging

More information

Mortgage series on management estimates

Mortgage series on management estimates Background and accounting primer Mortgage series on management estimates 1 Deloitte Center for Financial Services U.S. Residential Mortgage Market Update, October 2012. Many of the most subjective and

More information

A Survey of SME Finance and the Emerging Alternatives for Access to Capital

A Survey of SME Finance and the Emerging Alternatives for Access to Capital A Survey of SME Finance and the Emerging Alternatives for Access to Capital Jim Faith Trade and Export Finance Online Global California December 3, 2014 2014 TEFO. All Rights Reserved Agenda Section 1:

More information

Home Equity Lending Servicing Comparing Mortgage Companies to Banks

Home Equity Lending Servicing Comparing Mortgage Companies to Banks Home Equity Lending Servicing Comparing Mortgage Companies to Banks Jim Leath Diane Wagner BenchMark Consulting International As lenders seek to maintain volume levels in the face of an overall decline

More information

2014 STAR Best Practices

2014 STAR Best Practices 2014 STAR Best Practices 1 2014 STAR Best Practices General Servicing Best Practices... 3 Investor Reporting and Accounting... 3 Optimize personnel... 3 Quality and management oversight is key... 3 Reporting,

More information

Reg AB Is Here to Stay:

Reg AB Is Here to Stay: PwC Reg AB Is Here to Stay: What does this mean for servicers? By LaWanda Morris Tom Knox PwC Reg AB Is Here to Stay: What does this mean for servicers? By LaWanda Morris/Tom Knox Background The Securities

More information

Case 1:14-cv-01028-RMC Document 65-8 Filed 09/30/14 Page 1 of 10 EXHIBIT G

Case 1:14-cv-01028-RMC Document 65-8 Filed 09/30/14 Page 1 of 10 EXHIBIT G Case 1:14-cv-01028-RMC Document 65-8 Filed 09/30/14 Page 1 of 10 EXHIBIT G Case 1:14-cv-01028-RMC Document 65-8 Filed 09/30/14 Page 2 of 10 STATE RELEASE I. Covered Conduct For purposes of this Release,

More information

US LOAN SERVICES APRIL 2016 NICK OLDFIELD / TOBY WELLS

US LOAN SERVICES APRIL 2016 NICK OLDFIELD / TOBY WELLS US LOAN SERVICES APRIL 2016 NICK OLDFIELD / TOBY WELLS US Mortgage Servicing Market $10 trillion in New mortgage Business debt outstanding, with more than $1 trillion in new originations each year Corporate

More information

Legacy Asset Servicing. Terry Laughlin Legacy Asset Servicing Executive

Legacy Asset Servicing. Terry Laughlin Legacy Asset Servicing Executive Legacy Asset Servicing i Terry Laughlin Legacy Asset Servicing Executive Key Takeaways Split of Legacy Asset Servicing from Bank of America Home Loans to accomplish two goals: Enable greater focus on the

More information

Homeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA)

Homeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA) Homeownership Preservation Policy for Residential Mortgage Assets Section 110 of the Emergency Economic Stabilization Act (EESA) requires that each Federal property manager that holds, owns, or controls

More information

Mortgage Lending Analytics

Mortgage Lending Analytics Mortgage Lending Analytics Operational Practices December 2, 2014 Leslie Deich Today s Agenda The basics of mortgage lending from both the borrower and lender s perspective Overview of the operational

More information

THE CHANGING FACE OF VENDOR MANAGEMENT AND RISK ASSESSMENT

THE CHANGING FACE OF VENDOR MANAGEMENT AND RISK ASSESSMENT THE CHANGING FACE OF VENDOR MANAGEMENT AND RISK ASSESSMENT Brian Levy Katten & Temple, LLP 262/241-7977 blevy@kattentemple.com Presented October13, 2012 at ACMA Annual Meeting Kohler, Wisconsin Residential

More information

Top 2010 Business Drivers in Mortgage Origination. Andy Turner, Division Product Manager, Lending Solutions

Top 2010 Business Drivers in Mortgage Origination. Andy Turner, Division Product Manager, Lending Solutions Top 2010 Business Drivers in Mortgage Origination Andy Turner, Division Product Manager, Lending Solutions Overview Current lending landscape 2010 mortgage origination business drivers Business Drivers

More information

MISMO Software Compliance Certification Program Overview VERSION 4.0

MISMO Software Compliance Certification Program Overview VERSION 4.0 MISMO Software Compliance Certification Program Overview VERSION 4.0. 1 Contents 1.0 Purpose and Value Proposition... 3 1.1 Purpose of the MISMO Software Compliance Certification Program... 3 1.2 Interoperability

More information

House Committee on Financial Services. November 29, 2012

House Committee on Financial Services. November 29, 2012 House Committee on Financial Services Joint Hearing Before the Subcommittee on Financial Institutions and Consumer Credit and the Subcommittee on Insurance, Housing and Community Opportunity Entitled Examining

More information

I. RETURN INTEGRITY & ACCURACY TO FORECLOSURE AND BANKRUPTCY PROCEEDINGS

I. RETURN INTEGRITY & ACCURACY TO FORECLOSURE AND BANKRUPTCY PROCEEDINGS I. RETURN INTEGRITY & ACCURACY TO FORECLOSURE AND BANKRUPTCY PROCEEDINGS A. Put an end to robosigning - signing affidavits filed with the court without personal knowledge. Affidavits/sworn statements utilized

More information

American Securitization Forum

American Securitization Forum Statement of Principles, Recommendations and Guidelines for the Modification of I. Introduction The American Securitization Forum (ASF) 1 is publishing this Statement as part of its overall efforts to

More information

Citigroup Global Transaction Services

Citigroup Global Transaction Services Citigroup Global Transaction Services Cash Management Trade Services and Finance Securities and Fund Services Uncovering the Hidden Value in Accounts Receivables Olivia Xu Director, NA Trade Sales Kate

More information

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE PROJECT FINANCE With the growth in the economy and the revival in the industrial sector coupled with the increasing role of private players in the field of infrastructure, more and more Ethiopian banks

More information

Three Months Ended September 30, 2012. November 6, 2012

Three Months Ended September 30, 2012. November 6, 2012 Q3 2012 Earnings Presentation Three Months Ended September 30, 2012 November 6, 2012 Forward Looking Statements Any statements in this presentation that are not historical or current facts are forward-looking

More information

Mortgage Servicing Operations kpmg.com

Mortgage Servicing Operations kpmg.com ADVISORY Mortgage Servicing Operations kpmg.com b Section or Brochure name Contents Tested Methodologies and Services for Turbulent Times 1 Process Control Review Needs 4 Developing the Right Approach

More information

NATIONSTAR REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS & STRATEGIC ACQUISITION

NATIONSTAR REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS & STRATEGIC ACQUISITION Contact: Marshall Murphy (469) 549-3005 FOR IMMEDIATE RELEASE NATIONSTAR REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS & STRATEGIC ACQUISITION GAAP EPS of $0.27 Pro forma EPS of $0.53, including impact

More information

The Role of Mortgage Insurance under the New Global Regulatory Frameworks

The Role of Mortgage Insurance under the New Global Regulatory Frameworks The Role of Mortgage Insurance under the New Global Regulatory Frameworks By Anna Whittingham Regulatory Analyst, Genworth Financial Mortgage Insurance Europe Summary and Overview The introduction of fundamental

More information

HAFA Servicer Training 1

HAFA Servicer Training 1 Home Affordable Foreclosure Alternatives (HAFA) Training for Servicers Agenda HAFA Eligibility Criteria HAFA Policy HAFA Documentation Protections Against Unnecessary Foreclosure Resources What Is HAFA?

More information

Acquiring Institutions under Share Loss Agreements and LLC Servicers under LLC Servicing Agreements

Acquiring Institutions under Share Loss Agreements and LLC Servicers under LLC Servicing Agreements Federal Deposit Insurance Corporation Division of Resolutions and Receiverships 550 17 th Street, NW, Washington, DC 20429-9990 Risk Sharing Asset Management To: From: Acquiring Institutions under Share

More information

1. Please file all remaining exhibits as soon as practicable, as we may have additional comments following our review of these documents.

1. Please file all remaining exhibits as soon as practicable, as we may have additional comments following our review of these documents. Via E-mail Jason Kulas Chief Financial Officer 8585 North Stemmons Freeway Suite 1100-N Dallas, TX 75247 Re: Registration Statement on Form S-1 Filed July 3, 2013 File No. 333-189807 Dear Mr. Kulas: We

More information

Current Position Range Knowledge, Skills and Abilities Experience Years

Current Position Range Knowledge, Skills and Abilities Experience Years Current Position Range Knowledge, Skills and Abilities Experience Years Executive Assistant 4 Sr. Executive Assistant 5 Finance & Reporting Systems Mgr 10 Learning Assistant 4 Legal Specialist 6 Loan Closing

More information

Assessing Credit Risk

Assessing Credit Risk Assessing Credit Risk Objectives Discuss the following: Inherent Risk Quality of Risk Management Residual or Composite Risk Risk Trend 2 Inherent Risk Define the risk Identify sources of risk Quantify

More information

J.P. Morgan FinTech and Specialty Finance Forum December 2015

J.P. Morgan FinTech and Specialty Finance Forum December 2015 J.P. Morgan FinTech and Specialty Finance Forum December 2015 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange

More information

The GSEs Are Helping to Stabilize an Unstable Mortgage Market

The GSEs Are Helping to Stabilize an Unstable Mortgage Market Update on the Single-Family Credit Guarantee Business Rick Padilla Director, Corporate Relations & Housing Outreach The Changing Economy: The New Community Lending Environment June 1, 29 The GSEs Are Helping

More information

Case 1:13-cv-02025-RMC Document 12-6 Filed 02/26/14 Page 1 of 11 EXHIBIT F

Case 1:13-cv-02025-RMC Document 12-6 Filed 02/26/14 Page 1 of 11 EXHIBIT F Case 1:13-cv-02025-RMC Document 12-6 Filed 02/26/14 Page 1 of 11 EXHIBIT F Case 1:13-cv-02025-RMC Document 12-6 Filed 02/26/14 Page 2 of 11 State Release I. Covered Conduct For purposes of this Release,

More information

Chapter 3: Scorecard Development Process, Stage 1: Preliminaries and Planning.

Chapter 3: Scorecard Development Process, Stage 1: Preliminaries and Planning. Contents Acknowledgments. Chapter 1: Introduction. Scorecards: General Overview. Chapter 2: Scorecard Development: The People and the Process. Scorecard Development Roles. Intelligent Scorecard Development.

More information

WBA Overview of New Homebuyer Credit and Recent Government Loan Programs. First-Time Home Buyer Tax Credit

WBA Overview of New Homebuyer Credit and Recent Government Loan Programs. First-Time Home Buyer Tax Credit WBA Overview of New Homebuyer Credit and Recent Government Loan Programs First-Time Home Buyer Tax Credit Additional Resources: www.federalhousingtaxcredit.com/2009 http://www.irs.gov/newsroom/article/0,,id=202222,00.html

More information

FOR IMMEDIATE RELEASE November 7, 2013 MEDIA CONTACT: Lisa Gagnon 703-903-3385 INVESTOR CONTACT: Robin Phillips 571-382-4732

FOR IMMEDIATE RELEASE November 7, 2013 MEDIA CONTACT: Lisa Gagnon 703-903-3385 INVESTOR CONTACT: Robin Phillips 571-382-4732 FOR IMMEDIATE RELEASE MEDIA CONTACT: Lisa Gagnon 703-903-3385 INVESTOR CONTACT: Robin Phillips 571-382-4732 FREDDIE MAC REPORTS PRE-TAX INCOME OF $6.5 BILLION FOR THIRD QUARTER 2013 Release of Valuation

More information

Request for Information Regarding an Initiative to Promote Student Loan Affordability

Request for Information Regarding an Initiative to Promote Student Loan Affordability This Request for Information is scheduled to be published to the Federal Register in late February. In the meantime, please send comments via email to studentloanaffordability@cfpb.gov Billing Code: 4810-AM-P

More information

Sponsor of Audience Response System. Grant Thornton. All rights reserved.

Sponsor of Audience Response System. Grant Thornton. All rights reserved. Sponsor of Audience Response System 1. Between now and next year's Acquire or Be Acquired (Jan. 27-29 at the Phoenician), do you believe that the U.S. economy will: 1. Improve 45% 2. Remain the same 46%

More information

Forward-Looking Statements

Forward-Looking Statements Stephens Best Ideas Conference San Francisco, March 2009 Forward-Looking Statements This presentation contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking

More information

Timely and Efficient Default Servicing: Best Practices for Successful Foreclosure

Timely and Efficient Default Servicing: Best Practices for Successful Foreclosure A Point of View Timely and Efficient Default Servicing: Best Practices for Successful Foreclosure Abstract The mortgage industry underwent significant changes due to widespread bankruptcy and foreclosures

More information

Take control of lending credit risk

Take control of lending credit risk Enterprise Software overview Take control of lending credit risk Market leading credit management, origination and workflow tools for commercial lending Before Misys FusionBanking Credit Management Enterprise,

More information

2002 in the Mortgage Industry, an Industry Retrospective 1

2002 in the Mortgage Industry, an Industry Retrospective 1 2002 in the Mortgage Industry, an Industry Retrospective 1 Jeff Lebowitz; MORTECH, LLC The year 2002 was year with an economic recession that followed immediately upon the heels of the stock market crash

More information

Financial Institutions Industry Insights

Financial Institutions Industry Insights February 2011 Address the heightened risks of your mortgage lending and servicing activities with enhanced internal controls The continuing stress within the housing and mortgage finance industries has

More information

Automated valuation models: Changes in the housing market require additional risk management considerations

Automated valuation models: Changes in the housing market require additional risk management considerations Automated valuation models: Changes in the housing market require additional risk management considerations Overview From 2003 to 2006, the US residential real estate market experienced an unprecedented

More information

National Mortgage & Consumer Lending Services (MCL) kpmg.com

National Mortgage & Consumer Lending Services (MCL) kpmg.com National Mortgage & Consumer Lending Services (MCL) kpmg.com The mortgage and consumer lending industry has experienced unprecedented changes. Financial services and housing are the nation s most challenged

More information

Achieving Cost Improvements and Bank Operational Efficiencies

Achieving Cost Improvements and Bank Operational Efficiencies Achieving Cost Improvements and Bank Operational Efficiencies May 12, 2015 Audit Tax Advisory Risk Performance 2015 Crowe Horwath LLP 1 Session Description With banks experiencing slow revenue growth,

More information

Supplemental Directive 15-06 July 1, 2015 Making Home Affordable Program Streamlined Modification Process

Supplemental Directive 15-06 July 1, 2015 Making Home Affordable Program Streamlined Modification Process Supplemental Directive 15-06 July 1, 2015 Making Home Affordable Program Streamlined Modification Process In February 2009, the Obama Administration introduced the Making Home Affordable (MHA) Program

More information

HOME AFFORDABLE MODIFICATION PROGRAM BASE NET PRESENT VALUE (NPV) MODEL SPECIFICATIONS

HOME AFFORDABLE MODIFICATION PROGRAM BASE NET PRESENT VALUE (NPV) MODEL SPECIFICATIONS Overview HOME AFFORDABLE MODIFICATION PROGRAM BASE NET PRESENT VALUE (NPV) MODEL SPECIFICATIONS As a part of the Making Home Affordable Program, we are providing standardized guidance and a base net present

More information

The Math Behind Loan Modification

The Math Behind Loan Modification The Math Behind Loan Modification A Webinar for Housing Counselors and Loan Modification Specialists Presented by Bill Allen Deputy Director, HomeCorps Overview Types of loan modifications Estimating eligibility

More information

Elements of a Successful MBL Program. Creating And Sustaining Your MBL Competitive Advantage

Elements of a Successful MBL Program. Creating And Sustaining Your MBL Competitive Advantage Creating And Sustaining Your MBL Competitive Advantage Jim Devine, CEO, Hipereon, Inc. Let s Define Some of The Strategic Concerns For Member Business Lending Where are we Now? There are 2,000+ Credit

More information

Art or Science? Modeling and Challenges in the Post-Financial Crisis Economy

Art or Science? Modeling and Challenges in the Post-Financial Crisis Economy Art or Science? Modeling and Challenges in the Post-Financial Crisis Economy Emre Sahingur, Ph.D. Chief Risk Officer for Model Risk Fannie Mae May 2015 2011 Fannie Mae. Trademarks of Fannie Mae. 2015 Fannie

More information

To Marketplace, To Marketplace

To Marketplace, To Marketplace To Marketplace, To Marketplace Katie Wechsler November, 2015 On July 16, 2015, the U.S. Department of Treasury requested public input on marketplace lending (RFI). 1 Treasury received about 100 comment

More information

National Mortgage & Consumer Lending Services (MCL) kpmg.com

National Mortgage & Consumer Lending Services (MCL) kpmg.com National Mortgage & Consumer Lending Services (MCL) kpmg.com The mortgage and consumer lending industry has experienced unprecedented changes. Financial services and housing are the nation s most challenged

More information

Fixing the Sub-Prime Market. Jack Guttentag October 24, 2007

Fixing the Sub-Prime Market. Jack Guttentag October 24, 2007 Fixing the Sub-Prime Market Jack Guttentag October 24, 2007 Sub-Prime Balance Sheet Assets Expand home ownership in US Liabilities Overcharges Prime borrowers caught in net Opportunistic pricing Fee-packing

More information

Supplemental Directive 10 06 June 29, 2010

Supplemental Directive 10 06 June 29, 2010 Supplemental Directive 10 06 June 29, 2010 Home Affordable Modification Program Guidance on Annual Servicer Certification Required by the Servicer Participation Agreement Background In Supplemental Directive

More information

Complaints from consumers, real estate

Complaints from consumers, real estate CasCade of Changes New systems and practices manage the flow of loss mitigation options. Complaints from consumers, real estate professionals and public officials are rampant it takes too long to get an

More information

Balancing Mortgage Risk/ Return

Balancing Mortgage Risk/ Return Balancing Mortgage Risk/ Return while Navigating Choppy Waters September 13, 2012 Sponsored by: Michigan Credit Union League & Executive Summit: Affiliates Kathy Carlson, President/ CEO, Member First Mortgage

More information

Managing Sub-Servicer Relationship and Oversight Roundtable

Managing Sub-Servicer Relationship and Oversight Roundtable Managing Sub-Servicer Relationship and Oversight Roundtable Participants Leslie Meaux, Director of Monitoring & Asset Management-Ginnie Mae René Mondoñedo, Senior Mortgage Banking Analyst-Ginnie Mae Julio

More information

Understanding SAS 70 Reports on Internal Control

Understanding SAS 70 Reports on Internal Control Understanding SAS 70 Reports on Internal Control PwC Agenda Internal Control Reporting: A Focus on SAS 70 Trends affecting internal control reporting Discussion points for Mutual Fund Directors with management

More information

Disclosure Annex for Asset-Backed Security Derivative Transactions

Disclosure Annex for Asset-Backed Security Derivative Transactions Disclosure Annex for Asset-Backed Security Derivative Transactions This Annex supplements and should be read in conjunction with the General Disclosure Statement. NOTHING IN THIS ANNEX AMENDS OR SUPERSEDES

More information

Testimony of. James B. Barber. On Behalf of the AMERICAN BANKERS ASSOCIATION. Before the. Subcommittee on Economic Opportunity.

Testimony of. James B. Barber. On Behalf of the AMERICAN BANKERS ASSOCIATION. Before the. Subcommittee on Economic Opportunity. Testimony of James B. Barber On Behalf of the AMERICAN BANKERS ASSOCIATION Before the Subcommittee on Economic Opportunity Of the Committee on Veterans Affairs United States House of Representatives Testimony

More information

26 reversereview.com

26 reversereview.com 26 reversereview.com Reverse Lenders Transition to Mandatory Live Pricing Technology Solutions That Could Save Your Business Brad Thompson To remain competitive in today s market, reverse mortgage lenders

More information

What Does a Mortgage Servicer Do?

What Does a Mortgage Servicer Do? What Does a Mortgage Do? Mortgage servicers are hired by owners of whole loans ( Owners ) or trustees of a securitization trusts ( Trusts ) to: Collect payments from mortgagors Provide customer service

More information

The Cypress Group llc

The Cypress Group llc L/ The Cypress Group llc Ms. Mary Rupp Secretary of the Board National Credit Union Administration 1775 Duke Street Alexandria, VA 22314-3428 RE: Proposed Rule on Loan Participations (CFR Parts 701 and

More information

OPTIONS IN FORECLOSURE

OPTIONS IN FORECLOSURE Section II: KEEPING YOUR HOME OPTIONS IN FORECLOSURE Deciding whether or not to keep your home is something that only you, the homeowner, can determine. The best housing counselors will ask what you d

More information

Questions and Answers (Q&As) on the Management of Other Real Estate Owned (OREO)

Questions and Answers (Q&As) on the Management of Other Real Estate Owned (OREO) Questions and Answers (Q&As) on the Management of Other Real Estate Owned (OREO) Guest Speakers: Donald Gabbai, Federal Reserve Board of Governors Carmen Holly, Federal Reserve Board of Governors Matthew

More information

Making Home Affordable: New Challenges, New Tools

Making Home Affordable: New Challenges, New Tools Making Home Affordable: New Challenges, New Tools Todd Hempstead Senior Vice President, Single-Family Mortgage Business Fannie Mae June 2009 1 What I ll cover today Challenges facing our communities Fannie

More information

Claim and Foreclosure Bidding Servicing Guide

Claim and Foreclosure Bidding Servicing Guide Claims I Mortgage Insurance Claim and Foreclosure Bidding Servicing Guide October 1, 2014 Let s help someone buy a house today. 8783606.0814 GENWORTH MORTGAGE INSURANCE CORPORATION CLAIM AND FORECLOSURE

More information

FEDERAL HOUSING FINANCE AGENCY ADVISORY BULLETIN AB 2014-06 MORTGAGE SERVICING TRANSFERS. Purpose

FEDERAL HOUSING FINANCE AGENCY ADVISORY BULLETIN AB 2014-06 MORTGAGE SERVICING TRANSFERS. Purpose FEDERAL HOUSING FINANCE AGENCY ADVISORY BULLETIN AB 2014-06 MORTGAGE SERVICING TRANSFERS Purpose The Federal Housing Finance Agency (FHFA) is issuing this advisory bulletin to communicate supervisory expectations

More information

FOR IMMEDIATE RELEASE March 30, 2011

FOR IMMEDIATE RELEASE March 30, 2011 Contact Information Below CoreLogic Reports Shadow Inventory Declines Slightly, However, Nine Months Worth of Supply Remains Accelerated Loan Modifications and Short Sales Could Reduce Inventory SANTA

More information

Department of Veterans Affairs October 2010 Liabilities for Loan Guarantees Volume VI Chapter 6 0601 OVERVIEW... 2 0602 POLICIES...

Department of Veterans Affairs October 2010 Liabilities for Loan Guarantees Volume VI Chapter 6 0601 OVERVIEW... 2 0602 POLICIES... VA Financial Policies and Procedures Liabilities for Loan Guarantees CHAPTER 6 0601 OVERVIEW... 2 0602 POLICIES... 3 0603 AUTHORITY AND REFERENCES... 5 0604 ROLES AND RESPONSIBILITIES... 6 0605 PROCEDURES...

More information

Financial Summit. The New Normal. Part One. Part Two

Financial Summit. The New Normal. Part One. Part Two Financial Summit Part One What is the New Normal? What are lenders looking for: Franchisors Franchisees What are reasonable development schedules for lenders? What did the stimulus stimulate for franchising?

More information

Statement of Facts. Between 2005 and 2007, affiliates of each of JPMorgan Chase & Co.

Statement of Facts. Between 2005 and 2007, affiliates of each of JPMorgan Chase & Co. Statement of Facts Between 2005 and 2007, affiliates of each of JPMorgan Chase & Co. ( JPMorgan ) 1, The Bear Stearns Companies, Inc. ( Bear Stearns ), and Washington Mutual Bank ( WaMu ) securitized large

More information

The Emergence Of P2P Loan Securitizations

The Emergence Of P2P Loan Securitizations Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com The Emergence Of P2P Loan Securitizations Law360,

More information

Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer

Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer Fannie Mae recently announced plans to securitize single-family, fixed-rate reperforming loans (RPLs) into Agency

More information

American Securitization Forum. Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans

American Securitization Forum. Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans Executive Summary December 6, 2007 Scope: This streamlined framework applies to all first lien

More information

Good Practice Checklist

Good Practice Checklist Investment Governance Good Practice Checklist Governance Structure 1. Existence of critical decision-making bodies e.g. Board of Directors, Investment Committee, In-House Investment Team, External Investment

More information

Central Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87

Central Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87 Central Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87 An initial assessment from Genworth Financial The Central Bank ( CB ) published a consultation paper

More information

Home Affordable Foreclosure Alternatives (HAFA)

Home Affordable Foreclosure Alternatives (HAFA) Home Affordable Foreclosure Alternatives (HAFA) Training for Trusted Advisors Agenda 1 2 3 4 5 6 7 Overview HAFA Eligibility Criteria HAFA Policy HAFA Documentation Protections Against Unnecessary Foreclosure

More information

Innovations in Small Business Lending Introductory Session

Innovations in Small Business Lending Introductory Session Innovations in Small Business Lending Introductory Session This training contains general information only and Deloitte is not, by means of this training session, rendering accounting, business, financial,

More information

A Loan Origination and Servicing Solution For Habitat for Humanity Affiliates

A Loan Origination and Servicing Solution For Habitat for Humanity Affiliates A Loan Origination and Servicing Solution For Habitat for Humanity Affiliates Habitat for Humanity Michigan Fund, Inc. HFHMF Created to assist Habitat for Humanity Affiliates with mortgage origination

More information

New Predictive Analytics for Measuring Consumer Capacity for Incremental Credit

New Predictive Analytics for Measuring Consumer Capacity for Incremental Credit white paper New Predictive Analytics for Measuring Consumer Capacity for Incremental Credit July 29»» Executive Summary More clearly understanding a consumer s capacity to safely take on the incremental

More information

Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM

Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM Prepared By: Empire Justice Center Kevin Purcell and Salah Maker The Telesca Center for Justice One West Main Street, Suite 200 Rochester,

More information

Morgan Stanley Reports First Quarter 2015:

Morgan Stanley Reports First Quarter 2015: Media Relations: Michele Davis 212-761-9621 Investor Relations: Kathleen McCabe 212-761-4469 Morgan Stanley Reports First Quarter 2015: Net Revenues of $9.9 Billion and Earnings per Diluted Share from

More information

Internal Audit Plan. Date Prepared: June 27, 2011. Date Revised: December 7, 2011. 2 nd Date Revised: December 15, 2011

Internal Audit Plan. Date Prepared: June 27, 2011. Date Revised: December 7, 2011. 2 nd Date Revised: December 15, 2011 Internal Audit Plan Date Prepared: June 27, 2011 Date Revised: December 7, 2011 2 nd Date Revised: December 15, 2011 3 rd Date Revised: December 22, 2011 4 th Date Revised: January 12, 2012 EverBank Financial

More information

BORROWER Q&AS. 2. I'm current on my mortgage. Will the Home Affordable Refinance help me?

BORROWER Q&AS. 2. I'm current on my mortgage. Will the Home Affordable Refinance help me? MAKING HOME AFFORDABLE BORROWER Q&AS 1. What is Making Home Affordable" all about? Making Home Affordable is part of President Obama's comprehensive strategy to get the housing market back on track. Through

More information

New CFPB mortgage servicing rules present significant challenges for mortgage servicers

New CFPB mortgage servicing rules present significant challenges for mortgage servicers New CFPB mortgage servicing rules present significant challenges for mortgage servicers Prepared by: Jose Vivar, Director, McGladrey LLP 312-634-4394, jose.vivar@mcgladrey.com Michael Sher, Partner, McGladrey

More information

CFPB Mortgage Servicing Rules Overview

CFPB Mortgage Servicing Rules Overview CFPB Mortgage Servicing Rules Overview For additional information, visit www.consumerfinance.gov/regulations Note: This document was used in support of a live discussion. As such, it does not necessarily

More information

National Mortgage Settlement

National Mortgage Settlement National Mortgage Settlement Housing and Land Use Policy Program University of Iowa Public Policy Center Sally Scott, Ph.D. and Jerry Anthony, Ph.D. October 2012 Overview On February 9 of 2012, a bipartisan

More information

Mortgage Servicing Rights

Mortgage Servicing Rights Mortgage Servicing Rights RSM McGladrey, Inc. IN: FS Mortgage Servicing Rights Annual FI Conference June 27, 2005 Page 1 Mortgage Servicing Rights Background Accounting Valuation Reporting and Impairment

More information

RBC Mortgage Challenges and Solutions. Jonathan Threadgill President - RBC Mortgage

RBC Mortgage Challenges and Solutions. Jonathan Threadgill President - RBC Mortgage RBC Mortgage Challenges and Solutions Jonathan Threadgill President - RBC Mortgage 23 Mortgage Industry Diversion Originators vs. Aggregators U.S. Mortgage Business Loan Servicing Loan Origination Cash-flow

More information

Home Affordable Modification Program Guidelines March 4, 2009

Home Affordable Modification Program Guidelines March 4, 2009 Home Affordable Modification Program Guidelines March 4, 2009 Trial loan modifications consistent with these Guidelines may be offered to homeowners beginning on this date, March 4, 2009, and may be considered

More information

Citi U.S. Mortgage Lending Data and Servicing Foreclosure Prevention Efforts

Citi U.S. Mortgage Lending Data and Servicing Foreclosure Prevention Efforts Citi U.S. Mortgage Lending Data and Servicing Foreclosure Prevention Efforts Third Quarter 28 EXECUTIVE SUMMARY In February 28, we published our initial data report on Citi s U.S. mortgage lending businesses,

More information

Enhanced Credit Data and Scoring: Deeper Insight into Mortgage Applicants

Enhanced Credit Data and Scoring: Deeper Insight into Mortgage Applicants Enhanced Credit Data and Scoring: Deeper Insight into Mortgage Applicants Craig Focardi, Senior Research Director Retail Banking & Cards, CEB TowerGroup September 2012 Executive Summary Credit, collateral,

More information

PROPOSED REGULATORY PRUDENTIAL STANDARDS FOR NON-BANK MORTGAGE SERVICERS EXECUTIVE SUMMARY

PROPOSED REGULATORY PRUDENTIAL STANDARDS FOR NON-BANK MORTGAGE SERVICERS EXECUTIVE SUMMARY EXECUTIVE SUMMARY State regulators, through the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), have evaluated establishing a set of

More information

Final Report Short - Term Technical Assistance - Mortgage-Backed Securities Advisor

Final Report Short - Term Technical Assistance - Mortgage-Backed Securities Advisor The Development of a Mortgage-Backed Securities Market in Mongolia Final Report Short - Term Technical Assistance - Mortgage-Backed Securities Advisor Prepared by James H. France Consultant on behalf of

More information

Community bankers. regulatory environment. grow mortgage revenue. in today s ever-changing, helping community banks

Community bankers. regulatory environment. grow mortgage revenue. in today s ever-changing, helping community banks Community bankers helping community banks grow mortgage revenue in today s ever-changing, regulatory environment. We re community bankers just like you. Triumph Mortgage partners with community banks of

More information

How Bankers Think. Build a sound financial base to support your company for future growth

How Bankers Think. Build a sound financial base to support your company for future growth How Bankers Think Build a sound financial base to support your company for future growth Presented by: Lisa Chapman Business Planning, Social Media Marketing & SEO 615-477-8412 Questions to Consider First

More information

FDIC Loan Modification Program

FDIC Loan Modification Program FDIC Loan Modification Program A message from FDIC Chairman Sheila Bair I have long supported a systematic and streamlined approach to loan modifications that puts borrowers into affordable, longterm mortgages

More information

Unlocking Americas Greatest Asset. Housing Finance 3.0. 1 st Quarter 2015

Unlocking Americas Greatest Asset. Housing Finance 3.0. 1 st Quarter 2015 Unlocking Americas Greatest Asset Housing Finance 3.0 1 st Quarter 2015 THE PROPOSITION your LOGO WWW.YOURCOMPANY.COM THE PROPOSITION We allow a way for a Mortgage Origination platform to improve its position

More information

Attached is a presentation providing an overview of the Serviceworks Group and Specialized Loan Servicing, LLC acquisitions announced earlier today.

Attached is a presentation providing an overview of the Serviceworks Group and Specialized Loan Servicing, LLC acquisitions announced earlier today. Computershare Limited ABN 71 005 485 825 Yarra Falls, 452 Johnston Street Abbotsford Victoria 3067 Australia PO Box 103 Abbotsford Victoria 3067 Australia Telephone 61 3 9415 5000 Facsimile 61 3 9473 2500

More information