The paraphrased information about MFI-Miami has been boldfaced by me – Steve
Recent loan modification activity
Two organizations praised improvements to modification programs for conforming and government-insured loans. Two other firms are warning about the modification process and its players, while two service providers are offering products to help make the modification process easier for servicers. RediMod was launched by Lender Processing Services Inc., a press release Wednesday said. The new modular service automates mass modifications by automating loan eligibility and best-fit determinations without having to replace or upgrade core technology infrastructure.
“The solution includes data and analytics models that assign each loan in a portfolio a default propensity and loss severity score, as well as a highly configurable rules engine that identifies the borrowers who are delinquent or at risk of defaulting,” Lender Processing stated. “These loans then are run through a process that identifies the best possible workout option based upon factors, set by the servicer.”
ServiceLink said today that it provides loan modification solutions for a range of modification types — including rate resets, payment recasts and complex loan-term adjustments. Streamlined modification services include title and closing, valuation and a guarantee that the modification instrument does not impair the existing lien.
Billionaire Wilbur L. Ross issued a statement last week in support of the streamlined modification plan for conforming loans announced by the Federal Housing Finance Agency. Ross owns American Home Mortgage Servicing Inc. — the former servicing operation of failed American Home Mortgage Investment Corp.
American Home Mortgage Servicing, which serviced $85 billion as of Oct. 30, completed nearly 20,000 loan modifications from May through October out of 37,553 requested modifications, the statement said. The Irving, Texas-based company encouraged private investors, which own 90 percent of the loans it services, to support the streamlined modification plan on nonconforming loans.
HOPE NOW issued a statement today praising improvements to the HOPE for Homeowners program announced yesterday by the U.S. Department of Housing and Urban Development. Among the improvements was an increase in the maximum loan-to-value to 96.5 percent from 90.0 percent. Another enhancement was the ability to pay junior lienholders at the loan closing.
“Hope for Homeowners will now be an even more valuable and useful tool,” HOPE NOW said. “It is a worthwhile [addition] to the loan modification efforts that HOPE NOW members are using.”
An alert was issued by MFI-Miami LLC about criminally run loan modification companies. MFI, a mortgage auditing firm that also provides forensic mortgage fraud investigation services, said California and Florida are among the only states to regulate loan modification firms — though published reports indicate that Colorado now requires loan modification consultants to be licensed as mortgage brokers.
Among 10 factors MFI said should be scrutinized for modification companies were whether they contract work out, have an attorney on staff or guarantee their work.
Outreach Housing LLC released a statement last week calling on delinquent borrowers to be wary of loan modifications because borrowers are required to waive their rights. The company is prodding borrowers to let it help them find Real Estate Settlement Procedures Act and Truth-in-Lending Act compliance errors — which it claims to have found on 60 percent of the documents it has analyzed.