A G E N D A

Thursday, May 1
2:00 p.m. - 3:15 p.m. EST

The Collateral

Of course, the goal of default management is to reinstate a performing loan. But behind nearly every decision in the process is consideration of the net present value and condition of the delinquent borrower's home. These metrics affect a borrower's desire keep a loan current and frame servicers' discussions with delinquent customers, as well as outline what workout options are viable. However, given today's tricky real estate market, pinpointing accurate valuations for use in default management is particularly challenging.

The Borrower

Assessing the reason for default and determining the borrower's desire and ability to repay are fundamental to default management, but a number of factors influence obtaining and acting on that information. Currently, locating and contacting over-encumbered borrowers and engaging in meaningful dialogues are difficult, time-intensive tasks, and many servicers have found that they must carefully balance aggressive collections efforts with conscientious loss mitigation strategies. And today, all of these approaches are being conducted in the context of increasing bankruptcy volumes and higher numbers of borrowers willing to walk away from their mortgage obligations.

The Partnerships

Along the default management continuum, servicing organizations encounter different areas where support is necessary - either by virtue of a lack of in-house resources or a desire to more efficiently handle increased workflow. Implementing targeted technology is one strategy that can alleviate portfolio pressures, and servicers can also leverage assistance - from borrower-communications specialists and credit counselors to process servers and law firms - in specific functional areas. Central to any strategy are determining where partnerships will be most fruitful and implementing a plan in a cost-effective manner.

Program Concludes