DSNews The homepage of the servicing industry
Minneapolis-based ""Wolters Kluwer Financial Services"":http://www.wolterkluwerfs.com on Tuesday announced the launch of ""Pre-Foreclosure Manager"":http://www.wolterskluwerfs.com/pre, a hosted solution for U.S. mortgage servicers to create, mail, track, and manage borrower default notices.
[IMAGE]The nation's servicers face a rising number of loans entering default in addition to increasing regulatory pressures.
According to the ""Mortgage Bankers Association"":http://www.mortgagebankers.org, nearly 5 percent of all U.S. mortgages were in foreclosure in fourth-quarter 2010, up slightly from the previous quarter.
Add to that the fact that federal servicing requirements, especially those related to foreclosures, are expected to become more stringent when the Dodd-Frank Act takes effect in July or possibly earlier if the robo-signing settlement takes shape, and the challenges ahead for the default servicing industry will only intensify.
Wolters Kluwer Financial Services says its new technology offers a solution. According to the company, servicers
[COLUMN_BREAK]outsourcing the entire default notice process through Pre-Foreclosure Manager can address large spikes in foreclosure volumes with limited in-house resources, as well as reduce the risk of non-compliance with regulatory requirements and government program guidelines.
Servicers utilizing the solution submit data for loans entering foreclosure to Wolters Kluwer Financial Services. The company then creates the necessary default notices, which are backed by Wolters Kluwer Financial Services' compliance warranty that the notices meet all state and federal regulatory requirements, as well as government lending guidelines.
The documents are printed and mailed to borrowers to gather the signatures required to initiate foreclosures.
Pre-Foreclosure Manager features a Web-based reporting module that allows servicers to access the notices and documents whenever needed, such as in instances of court proceedings and evidence of certified mail delivery. The reporting module also allows servicers to track the generation, mailing, and fulfillment of notices, providing them with a tangible audit trail to validate compliance with regulators.
""It's clear the number of home loans in foreclosure will continue to rise or at least remain steady for the foreseeable future,"" said Art Tyszka, director of mortgage document services at Wolters Kluwer Financial Services.
Tyszka added, ""Servicers will need to adopt robust compliance and fulfillment strategies to accommodate the large number of loans in default. Wolters Kluwer Financial Services can help them do that by making the front end of the foreclosure process fast and compliant.""
