7 Images Total
Since 2007 when the volume of delinquent mortgage loans increased to unprecedented levels, while surprised and unprepared, servicers started to reinvent their business and adjust to the new reality. Besides that core adjustment today servicers also are routinely challenged by regulators, such as the Consumer Financial Protection Bureau, which recently updated its mortgage servicing requirements. At the MBAs National Mortgage Servicing Conference and Expo 2013 in Dallas Mark Fogarty, editorial director of the mortgage group publications, Amilda Dymi, managing editor, Mortgage Servicing News, and Evan Nemeroff, reporter, Mortgage Servicing News, sat down with mortgage industry insiders Ed Fay, CEO of Fay Servicing, John Vella, COO of Equator, and Loren Morris, general counsel and chief compliance officer of Retreat Capital Management, to hear, among others, about their reaction to these rules.
Ed Fay, CEO of Fay Servicing, thinks the fact that the CFPB has now finalized nine mortgage servicing rules the industry must abide to will make fundamental changes to how his special servicing company will do business with the exception of some of the single point of contact requirements. One of the biggest changes is just simply trying to make customers more aware of whats happening with their situation, he says. For example, servicers must send customers a second letter in 90 days instead of just one 45 days after they become delinquent. If for smaller servicers it is not a big deal to add another letter cycle, he says, for a large size bank or servicer who needs to ensure a letter cycle is a simple process it could be difficult to implement some of the changes . Luckily they gave us a significant amount of time to make the implementations.