ModCo Helps Lenders Reach Out to Borrowers
Aliso Viejo, CA-ModCo, a California-based company seeking improved communications between servicers and borrowers, has launched ModCo Solutions, a new division created to help mortgage servicers cope with increasing foreclosures and changes in mortgage servicing laws.
ModCo Solutions puts servicers and lenders in direct contact with borrowers, employing loss mitigation strategies and field services with a pre-emptive approach to default servicing. As foreclosures reach record levels, the firm seeks to provide the infrastructure for servicers to meet existing and new servicing regulations and reach out to more troubled borrowers before foreclosure is the only option.
Prepared for legislation like a recent bill in California, ModCo Solution's staff and technology provide outreach to borrowers anywhere with automated reporting to show due diligence. Property and occupancy inspections are provided along with valuation and tax certification data, and each campaign is tailored to meet the need of each individual servicer.
"ModCo Solutions is the dream partner for servicers. We support their loss mitigation efforts," said John Lynch, principal of ModCo LLC. "Our mission is home preservation, assisting lenders' home preservation strategies and helping them find troubled borrowers as early as possible."
Erin Forbes, senior vice president for loss mitigation at ModCo, said the company was formed about a year ago by three principals who owned national title, escrow and notary firms. The genesis of the firm came when one of the principals had to do loss mitigation work on a portfolio.
The company also believes that a state law recently enacted in California will spur the need for more servicers to outsource borrower contact campaigns. That law requires servicers to make efforts to contact borrowers within 30 days of default, and the law penalizes lenders that are deemed not to be making enough effort to contact and negotiate with delinquent borrowers.
"The servicers can bearely handle the volume that they have now, let alone a new intense campaign," Ms. Forbes told MSN. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/