As the popularity of Federal Housing Administration (FHA) insured home loan lending expands, servicers are looking to refine their strategy for managing foreclosure homes under the Claims Without Conveyance of Title (CWCOT) program.
In a recent white paper titled, “New Opportunities for Servicers to Optimize CWCOT Disposition Strategies” author Min L. Alexander, SVP of Real Estate Services for Altisource, lays out a roadmap for an effective and efficient CWCOT program strategy.
“One that incorporates elements of decision theory and risk modeling to simplify and streamline processes while decreasing loss severity for servicers,” Alexander writes.
When optimizing CWCOT outcomes, there are a few obstacles that servicers will face, and Alexander outlines three.
First, effectively utilizing available data to make decisions, while most information is available to servicers — including asset level, mortgage, market, and vendor cost data—servicers often struggle to produce clear, meaningful outputs that make decision making easier.
Second is accessing intuitive technology platforms, as most vendors and servicers rely primarily on platforms, which function as electronic filing cabinets with limited capabilities for integration outside of simple workflow tasking and document storage, Alexander delves into detail on what can be done to overcome this.
Finally, Alexander’s third obstacle to a successful CWCOT program is the inability to readily integrate processes and data flow across multiple vendors—causing material timeline delays and poor quality results for the next vendor.
In the end, Alexander proposes a solution to each of these challenges. Want to know how to ensure an optimal CWCOT program strategy?