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Guardian Sees Servicing Arena as a Growth Opportunity

Guardian Mortgage Services, a division of Guardian Mortgage Documents, hopes to play an expanding role in helping clients manage loan servicing issues in today's market.

While the company's primary focus has been on helping lenders manage document processes on the origination side of the industry, Guardian sees growing demand to help servicers manage what is expected to be a rising volume of loan modifications.

Jonathan Kunkle, vice president of GMS, said that the company has experts on staff who bring servicing related talents to bear in the loan modification process.

"We have people on our staff who are not only experts in closing and post-closing, but also in title, and that's really beneficial when you are looking at the chain of command on that title," Mr. Kunkle said.

That helps to ensure that GMS's clients can accurately close the modified loan. Loan modifications are often used to avert foreclosure on loans that have become seriously delinquent or gone into default.

Lenders typically create loan modification agreements that change the terms of the previous note. In some cases, the modifications are recorded, while some are not legally recorded. Some lenders prepare new lending documements such as a Truth-in-Lending disclosures, Mr. Kunkle said.

"There is a lot of gray area in terms of what is actually required in a loan modification," he said in an interview.

Tim Anshutz, vice president of marketing at Guardian Mortgage Documents, said that one advantage of outsourcing in today's difficult mortgage environment is that it gives lenders a variable cost option.

"In today's market, GMS allows a lot of flexibility in terms of not having to be tied to fixed cost, legacy systems and constantly right sizing staffing."

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