Stewart Lender Services is offering a new loss-mitigation service designed to assist lender/servicers with a significant number of Hispanic clients.
The Houston-based subsidiary of Stewart Title Co., said under the nationwide effort it will cater to the needs of underserved communities.
The firm will hire Spanish-speaking mortgage professionals, including loan counselors and underwriters who will staff Stewart's loss mitigation call center.
Stewart's subsidiary, Home Retention Services Inc., offers loss mitigation solicitation, borrower outreach and underwriting services for lenders in both English and Spanish.
Currently 40% of the firm's staff is proficient in Spanish, the company said. Many are serving distressed communities in such high delinquency states as Arizona, California, Florida and Nevada.
Stewart said it developed "a specific offering" that targets the demographic because Hispanics have a disproportionate share of defaulting and foreclosed properties.
According to the Center of Responsible Lending, approximately 8% of Hispanic borrowers who received loans from 2005-2008 have lost their homes due to foreclosure. Also, Hispanic borrowers count for an estimated 21% of all owner-occupied loans 60 days or more past due.
Stewart Lender Services found that approximately one out of every five borrowers counseled prefers talking with a Spanish-speaking loan counselor.
Services include counseling for the Home Affordable Modification Program, traditional modification programs, short sale solutions and other workout options.
