CoreLogic has introduced a new tool designed to deliver summaries of the assignment document chain mortgage servicers need to comply with federal regulators.
The Assignment Validation Report provides users with the information feedback they need to comply with recent mortgage servicer requirements implemented by Fannie Mae and the national mortgage servicing settlement.
More specifically, the need “to identify the current mortgage beneficiary and document the chain of assignment prior to initiating a foreclosure.”
To assist servicers with completing foreclosure referral packages, AVR includes copies of the recorded mortgage, assignments and affidavits of lost assignment.
It enables servicers to identify what assignments may be missing in the recorded assignment chain. It also allows users to screen existing assignments to ensure they are properly completed to help “avoid delays in processing the foreclosure referral.”
CoreLogic said the report responds to growing demand for compliance-related tools that are designed for mortgage servicers. It was fueled by recently mandated requirements from both the regulators and federal investors such as the GSEs as well as by the need to start the process as early as possible.
Data show servicers often begin the foreclosure process too late as traditionally they wait until the loan becomes 90 days delinquent, and currently according to the latest CoreLogic MarketPulse Report, about 7% of all loans are seriously delinquent.
The report is expected to help servicers initiate the document collection procedure early in the foreclosure process.