Taking the Stress Out of Loss Mitigation

As anyone who has spent time in mortgage servicing will tell you, the loss mitigation process is one of the most stressful. The borrower's stakes could not be higher as they face a financial difficulty that has placed their family home on the path of foreclosure. Emotions are high.

The servicer also faces unrelenting challenges, while legacy software solutions often pigeonhole teams into operational silos with little or no case-level context. This can result in a just-in-time chain reaction of service delivery. Handoffs between teams are disjointed, and delays arise from incomplete or inaccurate information. This style of service leaves borrowers feeling disengaged and discouraged, and can result in a bail-or-fail scenario.

In its latest paper, Taking the Stress Out of Loss Mitigation, Aspen Grove Solutions ask must loss mitigation be this difficult, and highlights how the loss and stress can be mitigated for all stakeholders.

Using automation and collaboration at its core, loss mitigation can be transformed so that from the first document submission or streamlined review, a comprehensive series of tasks auto-generate, auto-populate, and auto-assign against defined service level agreements (SLAs). This includes all process steps, including resubmissions, incomplete packages, non-responsive borrowers, trial failures, and appeals.

Learn how dynamic technology can give mortgage servicers the power to see around corners, rendering the appropriate workout or moving further down the evaluation chain into liquidation options. Intelligent task automation also funnels team activities and promotes Consumer Financial Protection Bureau (CFPB) and investor compliance, resulting in fewer process breaks and a drastically reduced risk of enforcement actions, consent orders, and curtailments.

Other steps that dial down the stress and give control back to the servicer include eliminating the need to access vendor systems, auto-managing Nationwide Multistate Licensing System & Registry (NMLS) state assignments, and reducing daily surprises and subsequent firefighting through visibility; so, for example, Underwriters get visibility of upcoming BRP completions and SPOC agents’ visibility of outgoing decisions. As a result, volume spikes or bottlenecks are identified days or weeks earlier, enabling managers to keep things on track with borrowers.

From dashboards that provide a single source of truth across the entire loan portfolio, to worklists that bring agents into their work quickly and where borrower messages and responses are updated into an immediate action queue for faster turn-around. This means there are no cracks for work to fall between.

A single-asset view enables more teamwork with fewer interruptions. agents may see, but not update, operations in loss mitigation. Similarly, loss mitigation agents can track bankruptcy proceedings, or send updates back to foreclosure teams–all on the same file and system. Having data in real-time drives better decisioning, and avoids overlap. The system identifies incompatible actions between teams, such as loss mitigation phone calls outside of the Fair Debt Collection Practices Act (FDCPA) or modification solicitations beyond foreclosure deadlines.

Nothing quite stress tests technology like an annual audit. The paper concludes by examining how a single asset view that presents a complete activity history chronologically ordered across all teams and vendors can have you audit-ready without the stress.

With an out-of-the-box offering that drives down implementation costs and speeds up timelines, customers can be up and running in weeks.

With proven ROI, productivity increases, and loan modification timeline reductions, this could be your day's most productive two-minute read.

The full paper can be found here.

If you have questions related to any of the topics discussed in this paper, please contact Aspen Grove Solutions at [email protected].

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