Servicing commentary is analyzed to determine the reason for the asset’s underperformance and to identify clues regarding the potential risk for the loan and their ability to re-perform in the future. Additionally,
1) the current home value
2) distressed property conditions
3) occupancy issues
4) income
5) current Loan/Legal Status
6) borrower intentions and current financial situation
7) Loss Mitigation Efforts
8) Title concerns
9) Is the borrower engaged with the servicer?
10) origination misrepresentations, etc. are identified through the review of these servicing/collection comments
We review the notes and file documents to:
1) articulate the default triggers
2) identify matters pertaining to high-risk borrowers and guarantors
3) identify state Statute of Limitation that may impact future servicing rights (state law varies from state to state for a foreclosure
4) defense to a lender's attempt to foreclose
For FHA Quality Control Review, the definition of an early payment default involves loans which become 60 days past due. (FHA 6-10D). The loan file is delivered to Quality Control for a loan level review of risks, to determine if there is any defect that would have prevented the loan from being eligible for approval initially.
The federal government began requiring mortgage servicers to have a single point of contact (SPOC) for defaulting borrowers in 2011. We help lenders focus their efforts to maximize a homeowner’s eligibility for various loan modification programs by auditing the loan file.
Under the CFPB’s new rules a servicer is prohibited from making the first notice or filing required by applicable law for any foreclosure process until the loan is more than 120 days delinquent. Company Name cannot commence or continuing the foreclosure process while a completed loan modification application submitted by a borrower is pending, until (1) the mortgage servicer makes a written determination that the borrower is not eligible for a loan modification and (2) any appeal period has expired.