Atlanta-based default servicing law firm Morris Schneider & Wittstadt, LLC, has transferred all of its default assets to Dallas, Texas-based mortgage banking industry law firm Butler & Hosch, PA, according to a joint announcement from both firms.
The agreement between the two firms, which became effective on January 30, will create one of the nation's largest residential default servicing industry platforms.
"This asset purchase marks a new chapter and gives the firm a more competitive operational platform to service our clients," Butler & Hosch senior partner Bob Hosch said.
The shift toward more consumer-focused policies and tighter regulations in the default servicing and mortgage industry has created the need for mortgage professionals and law firms serving the industry to focus more on compliance, internal operations, and both financial and reputational risk management. The agreement will allow Butler & Hosch to concentrate more on these areas and provide clients with stronger risk, audit, operational, and technology solutions.
MSW's chief operating officer since 2007, Kenny Daniel, will assume the same role with Butler & Hosch. A veteran of 35 years in the industry, Daniel previously served as MSW's president of national default marketing and worked as the director of servicing management and risk management with Fannie Mae.
"MSW has provided default-legal related services to a wide variety of clients for over 20 years," Daniel said. "Throughout this time, the firm grew and expanded services to adapt to the changing mortgage industry environment. Our decision to become a part of B&H was the next logical step for us in this journey."
According to B&H's announcement, the transfer of default assets from MSW to Butler & Hosch is effective immediately. MSW's compliance team will continue to manage remaining client files until they are fully transferred to the new platform, which could take up to 60 days, according to the announcement. Also effective immediately, Butler & Hosch has retained the professionals and attorneys previously employed by MSW to ensure continuity of services and support.
Both firms are members of the Legal League 100, a nationwide consortium comprised of 100 default servicing and financial services law firms providing a results-driven, go-to resource for the industry's decision makers.