Servicers facing capacity limitations are now focused on hiring, training and expanding their loss mitigation team. The colossal task at hand, insiders say, makes it imperative to simultaneously keep in mind an exit strategy that benefits from a versatile workforce.

"Now the default cycles are up, so are the loss mitigation needs, lots of people need modifications, retention workouts such as a short sale or deed-in-lieu and the general consensus is that it will last another two to three years," says Steven R. Paton, SVP of loan administration at Marix Servicing LLC. "The hope is that we won't need as much loss mitigation but I think that the skill set is close enough to that of an originator that can go back into the originations world."

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