It’s the overriding goal of every servicer dealing with default assets. How do you get those loans reperforming as quickly as possible? Even a month’s delay can add up to hundreds of thousands of dollars in unrecoverable costs and losses if you’re managing a large portfolio.
The good news is that emerging title technology is playing an increasingly important role in the default loan management lifecycle. Instant title platforms are being engineered to deliver key, per-loan data points at the top of the loss mitigation process. Specific features layered into these solutions speed decisions by determining whether a property’s title, in its current state, qualifies for various methods of mitigating the default. For example, does it meet the requirements for a mortgage modification (and MMP)? Is a deed-in-lieu an option? A short sale? The technology pings data sources in real-time and mines the information needed to make well-informed decisions as early as possible in the default cycle. Some solutions are so robust that they go beyond data presentation and steer you to the best option for moving forward on the fly, as results from the title search are delivered in a matter of minutes, not days.
Robust and scalable, these platforms churn through bulk default title orders in no time flat. When plugged into a servicer’s default processing operations, all the traditional title delays and inefficiencies are replaced by smooth, elegant, friction-free operational performance. Default processing specialists spend more time doing, and less time waiting or trying to figure things out. Borrower stress levels go down while clear-to-close times go up.
But wait, there’s more. As part of a default title lifecycle management model, the title data on each asset can continue to inform and expedite decisions as loans continue beyond loss mitigation into the pre-foreclosure stage and up through final resolution. Not only does this save time, but it also saves money. No more ordering and re-ordering title at each phase of default. (I kid you not: one top 10 servicer was paying for new title searches up to seven times per file.) How often do you order title, on average, per default file? Go ahead. Do the math.
Now to answer the obvious question every servicer client asks: how difficult is it to integrate the instant title engine into a default workflow? It depends on the platform. System agnostic, Dekko, Boston National Title’s [1] instant title solution, can be implemented in a matter of weeks into virtually any servicing operation. Certain clients use it as a standalone component of their default process, while others expand the solution to include Xpedocs, our automated loss mitigation documentation prep and expediting engine. Depending on loan volume and processing capacity, other clients take advantage of Boston National’s End-to-End Default Title Lifecycle Management services. Using a dedicated, default title team to help steward files from the moment a loan goes into default through resolution—whatever form it may take—is a preferred option for servicers who don’t have the resources to efficiently tackle volume spikes or who simply want to make better use of their own teams while streamlining default title operations and costs.
Customization and flexibility, as always, are key. While every servicer is faced with the same challenges, no two default title integrations are ever alike. One thing is for sure: the time to get serious about it is now. Although the predicted wave of post-COVID-19 defaults is more of a ripple, servicers are suffering significant cost and time losses that an instant title engine can resolve.