Magazine article Mortgage Banking

Lifesaving

Magazine article Mortgage Banking

Lifesaving

Article excerpt

Servicing shops around the country are trying out new strategies to bolster their ability to make contact with borrowers facing difficulties. As delinquencies rise, servicers are struggling to reach borrowers in new ways and with promising new alternatives in order to fashion workouts. A key finding is that the earlier that contact can be made, the greater the likelihood of success.

In a story this month titled "A Survival Guide" by Dona DeZube, we showcase the best thinking of servicing professionals working in the trenches trying to help embattled borrowers. The article offers 37 tips from people who have learned the hard way what works and what doesn't in the field of loss mitigation. The article is rich with practical information that is being put to use by some of the best servicers in the business.

For example, did you know that Houston-based Litton Loan Servicing LLP has put 20 to 30 people actually on the street in neighborhoods with high foreclosure rates, hand-delivering loss-mitigation packages to borrowers and doing community-based loss mitigation? Litton also pays its foreclosure attorneys more for doing loss mitigation than for a foreclosure. Larry B. Litton Jr., chief executive officer of Litton Loan Servicing, observes, "If lawyers can make money doing loss mitigation, they'll do it."

[ILLUSTRATION OMITTED]

Mark H. Friedman, president of Baltimore-based MSTD Inc., producer of BackInTheBlack[R] says his company has a client that had to move more staff into loss mitigation to handle all the workout packages that started flowing in after the company started auto-filling forms for borrowers. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.