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.