Sometimes It Takes a Human Touch
While technology should be implemented to speed up the short sale process, sometimes humans have to intervene. Retreat Capital Management Group, an end-to-end provider of loss mitigation and portfolio management products and services for large and mid-size lenders, servicers, asset managers and investors, has added document pick-up, notary services, as well as REO- and HAFA- (Home Affordable Foreclosure Alternatives Program) compatible short sale processing and listing solutions to its comprehensive line of services.
Securing documents has been cited as one of the biggest hindrances - if not the biggest hindrance - to converting the nation's 1.2 million trial HAMP modifications into permanent modification status. Currently, only approximately 66,000 HAMP modifications have been transitioned from trial to permanent status. These low conversion rates have been blamed on missing or lost documents.
Media outlets have reported what industry data have confirmed: that many mortgage servicers failed to collect necessary documents during the three-month trial loan modification period. Part of the reason was the large amount of paperwork involved and number of documents borrowers needed to file but often did not, or could not. Saxon Mortgage has been using Retreat Capital Management Group's document pick-up notary services to facilitate its loan modification process. Retreat Capital's services have recently proven to reduce delays by providing turn-around times that far surpass the industry average. To date, 76% of the HAMP modification cases utilizing Retreat Capital's document pick-up service were completed within 45 days. The company's notary services, which are provided by specialists in the mortgage industry, have had superior results as well, with 86 percent completed within three to four days. Retreat Capital also completes all reporting as required by the Home Mortgage Disclosure Act (HMDA) according to requirements and guidelines.
"One of the big difficulties with the HAMP program is that servicers are waiting 90 days to six months or even longer to get borrowers' required documents," says Arvin Wijay, chief executive officer for Retreat Capital Management Group. "We have the agility, resources and nimbleness to respond faster than most lenders and servicers, which is particularly helpful in situations like HAMP modifications, where deadlines are non-negotiable. With our proven results, we're establishing a new industry standard for turnaround times and service levels in picking up and notarizing borrower documents."