Like never before, data gathering, reporting and custody are in the spotlight. The industry is investing in transparency efforts designed to ensure information is not lost during the life of a mortgage asset. The goal is to provide banks, issuers and investors an unbroken chain of data from origination to servicing to securitization.
A popular data source for mortgage servicers is Mortgage Electronic Registration Systems. On the heels of the Obama administration making public its mortgage relief plan, MERS is helping the effort. Lenders receive financial incentives when they help modify or refinance loans into more affordable terms. Homeowners seeking to modify or refinance need to contact the mortgage company that collects their monthly payments. MERS provides this informational link through MERS ServiceID, a free website and toll-free number.
Standard & Poor's has fully integrated into its LEVELS 6.6 mortgage analytical model VantageScore, the borrower credit score provider created by the country's three largest rating companies: Equifax, Experian and TransUnion. S&P said it is a way to provide new insight into the securitized mortgage loan market. RenewData, a global custodian of electronically stored information is hosting an online litigation support platform for document review and management.
Meanwhile, Freddie Mac appears to be in a status quo when it comes to document management.