Loss mitigation

The bankruptcy of Wingspan Portfolio Advisors epitomizes the existential crisis facing default servicing. This once-thriving sector of the mortgage industry now finds itself declining in lockstep with the drop in loan delinquencies and foreclosures.

More than 10,000 mortgages were refinanced through the Home Affordable Refinancing Program in May, the Federal Housing Finance Agency reported.

Stewart Mortgage Information Systems is pulling the plug on its delinquent mortgage services business.

The methodologies and paths for proactive consumer outreach can vary dramatically depending on multiple risk factors that servicers must have a plan to mitigate.