Technology To The Rescue
Technology is providing servicers with tools to
increase efficiencies, cut costs, and raise profits.
...Continued from Previous Page
One step further
MSV's Back in the Black takes that one step further
by, when the first signs of a default arise, presenting
guidelines based on the loan type, proposing the
solutions that are best for a particular delinquent
borrower, and then assisting with the drawing up of the
workout solution.
"It could be a Freddie or Fannie loan, an FHA loan, a
VA loan, a private investor loan or a portfolio loan,"
explains Thomas Dungee of MSV. "We used the
guidelines that were provided to the mortgage industry
by each of those. And based on those guidelines, it will say
that these are the questions you have to ask."
The answer to each question, he says, determines the
next question, and finally all those answers and the
information they provide determine what alternatives are
the most appropriate solutions.
While other systems will tell whether a borrower
qualifies for a suggested solution, he notes, Back in the
Black proposes solutions for which borrowers qualify.
This lessens, if not eliminates, the chance of a
"solution" becoming only a short-term fix, with the
borrower again becoming delinquent, Dungee points out.
Systems designed to deal with foreclosures and
bankruptcies include, most prominently, Lincs and
London Bridge Group's LenStar that, through imaging
and the Internet, speed the scanning and sending of loan
data, legal files and documents, legal notices, proofs of
claims, judgments and case status reports between
servicers and their outside attorneys.
"Imaging has been around a while and a lot of
companies have imaging for internal use," says attorney
Denis Pierce, whose office uses both Lincs and LenStar.
"But a system where different trading partners can have
access to the same imaging file from different locations is
a new application. Internet capability and imaging are
noteworthy new applications."
Products expansion
LenStar and Lincs also have workflow applications,
he notes, since these systems can track events on a time
frame to make sure that filings and other legal actions get
done within a state's set deadlines.
LenStar, says David Demster, senior vice president
of the Norcross-GA.-based London Bridge Group, also
provides improved online information management for
lenders and servicers and their attorneys, and provides
increased capacity to react to compliance issues before
penalties are assessed.
Further, London Bridge's recent acquisition of
LenStar from TekStar AdMedia, says TekStar co-founder
Scott Stoddard, will make possible the expansion of
LenStar to include eviction, skip tracing, imaging and
other default transactions.
LenStar also will integrate with London Bridge's
Fortracs default management system, which allows the
continual updating of not only data, but also regulatory
requirements, aids loss mitigation decisions, accelerates
claims processing, streamlines foreclosures by tracking
bids, performing buy-down calculations and comparing
competing offers, tracks bankruptcies and helps manage
REOs by evaluating the performance of real estate agents
and vendors and analyzing gains and losses, explains
Demster.
Other related products from London Bridge Group
include Debt Manager which analyzes the underlying risk
of each customer to dictate appropriate strategies and
actions; partner.net which electronically transmits details
of outstanding debts to collection agencies and attorneys
and generates daily reports to help control and track third
party activity; and RMS for collections and charged off
accounts that streamlines and automates the bad debt
process, including internal recovery, accounting,
bankruptcy and litigation.
Continued on Next Page...
