Loss mitigation

Mortgage servicers are getting better at helping borrowers avoid foreclosure, as evidenced by a declining auction rate, which was also supported by healthy home equity levels, according to Auction.com.

The Western states are the most likely to experience an increase in distressed loan activity in the second half of 2019, a survey of mortgage servicers by Auction.com found.

Although the performance of the government-sponsored enterprises' single-family loans continues to improve, the deeply delinquent totals remain significant in states with court-processed foreclosures.

BSI Financial agreed to pay a $200,000 fine along with restitution to settle allegations from the Consumer Financial Protection Bureau that it mishandled mortgage servicing rights transfers for loans in the loss-mitigation process.

With nearly $90 million added in the past two months, Goldman Sachs marched closer to its $1.8 billion consumer-relief mortgage settlement with the U.S. Department of Justice.

Home retention actions for loans owned by Fannie Mae and Freddie Mac declined in the fourth quarter and that trend is likely to continue given the strong economy.

Servicers that fail to give borrowers access to digital collection methods are missing out on a chance to improve delinquency rates and lower costs.

Whether through greater investments in technology and talent, or streamlining back-end processes to improve the decision-making process, mortgage servicers are doing more to prioritize borrowers. Here's a look at seven of these borrower-focused initiatives and how they're reshaping mortgage servicing.

A digital mortgage startup called Brace is using machine learning to automate loss mitigation and has lined up backing from several venture capital sources, including a fund with high-profile investors like Amazon founder Jeff Bezos.

The agency wants mortgage servicers to extend special forbearance plans to those affected by the partial government shutdown and evaluate borrowers for loss-mitigation options.

Home retention actions from Fannie Mae and Freddie Mac through the first three quarters of 2018 already eclipsed 2016 and 2017 while forfeitures kept declining, according to the Federal Housing Finance Agency.

The government-sponsored enterprises sold fewer nonperforming loans in the first half, but the drop-off in the number of sales year-to-year is less severe than it was in 2017 as a whole.

Altisource Portfolio Solutions plans to discontinue its buy-renovate-lease-sell business for single-family homes and sell its short-term inventory in order to cut costs and repay debt.

Goldman Sachs is getting closer to hitting its $1.8 billion consumer relief obligation as outlined in mortgage settlement agreements between the U.S. Department of Justice and three states.

The Federal Housing Administration is making it easier for reverse mortgage servicers to submit insurance claims by expanding the types of supporting documentation it will accept on defaulted loans.

The new policy, meant to assist borrowers in Puerto Rico and the U.S. Virgin Islands, will let servicers evaluate borrowers using pre-disaster payment information.

Wells Fargo estimates that in 400 instances, borrowers later went through foreclosure who were improperly denied or not offered a mortgage modification.

Sales of nonperforming loans by Fannie Mae and Freddie Mac slowed during the past year as the number of delinquent loans on their books continued to drop.

Ocwen Financial Corp. got back in the black during the first quarter after selling New Residential Investment Corp. $110 million in economic rights to mortgage servicing.

From tech that ensures foreclosures are processed correctly to implementing robotic process automation, here's a look at seven strategies that servicers can use to stay compliant and on budget.