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Fiserv Prepares Mortgage Servicers for Changes to Bankruptcy Rules

In conjunction with the changes to the Federal Rules of Bankruptcy Procedure (FRBP) which go into effect on December 1, ""Fiserv, Inc."":http://www.fiserv.com announced Wednesday that its ""LoanServ solution"":http://www.lending.fiserv.com/lending_solutions.aspx offers the capabilities to help ensure mortgage servicers remain compliant amidst evolving regulations.

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Fiserv, headquartered in Brookfield, Wisconsin, is a global provider of financial services technology solutions. The company provides a range of solutions to support end-to-end loan management and help lenders and servicers respond to increasing demands.

The rules amend the procedures and policies for servicing loans in bankruptcy and aim to enhance transparency in the process. Reflecting the recent industry focus on full disclosure and accuracy of accounting, FRBP changes

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govern the filing of proofs of claim and notice issues related to payment changes, post-petition fees, and other accuracy checks related to servicer actions.

For instance, Fiserv explained, the new proof of claim (POC) form requires the servicer to attach a statement itemizing interest, fees, expenses, and charges included in the claim along with the amount to cure the default and an escrow account statement prepared as of the date of the petition.

""Fiserv has taken steps to educate our clients and help them adapt to the changes in the bankruptcy procedure before they went into effect,"" said Joe Dombrowski, mortgage strategist in Fiserv's lending solutions division.

Dombrowski says Fiserv has taken a collaborative approach to ensure that its clients, who range from small to top five servicers, have the tools needed to comply with the new regulatory requirements.

After the changes were announced, Fiserv worked closely with its clients on evaluating system capabilities to account for items such as POC shortages, payment changes, escrow disbursements made before the effective date chosen by each client, and the date fees, expenses, and charges are incurred.

""No matter which way our clients choose to do the POC analysis or POC-related charges and expenses, we have determined that our LoanServ platform supports the new requirements,"" Dombrowski said.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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