It’s clear that the servicing industry is continuing to place a laser-like focus on improving and controlling the borrower experience when servicing loans. The number of distressed borrowers in need of a mortgage loan modification is increasing every passing day due to the increase in mortgage delinquency.
With high volumes of mortgage loan modification requests to process, servicers need to ensure error-free documentation to avoid penalties.
Miscalculations can lead to a mortgage loan modification error. In 2018, for example, a major lender admitted that due to a computer glitch, it wrongfully failed to give modifications to about 625 mortgage-loan borrowers. The bank used a modification tool that automatically miscalculated attorneys’ fees when evaluating borrowers for a potential loan modification. As a result of the miscalculation, some borrowers were deemed ineligible for a HAMP modification or a modification under a government-sponsored enterprise program, like one from Fannie Mae or Freddie Mac. Wells Fargo eventually foreclosed on 400 of the 625 homeowners affected.
Thus, mortgage servicers are on the lookout for efficient loan modification services to better serve their customers in a timely manner.
Loan servicers that partner with PrivoCorp are better able to manage the influx of documentation and streamline the adjustment process with zero-error. Subcontracting the loan modification process reduces costs for servicers because it allows them to dedicate their internal resources to profit-generating operations. In fact, research firm NelsonHall reported that outsourcing can save servicers between 20 and 40 percent — and those percentages continue to improve over a three- to a five-year term. The firm also noted that servicers can also save up to 50 percent indirectly due to the speed of processing and reduced litigation.
Many of our clients choose to partner with us as we offer end-to-end mortgage servicing support right from Loan Boarding, loan modification, loan servicing to managing default operations, and loss mitigation.
PrivoCorp is uniquely positioned to help servicers of all sizes transform and scale their mortgage default servicing operations.
We welcome the opportunity to showcase our capabilities and provide you with focused solutions that fit the needs of your mortgage default servicing operations.