Recently we’ve talked a lot about the origination space given all the breaking news, but we can all agree with record defaults to deal with, servicing is where the action is. Just today we were told some breaking news about how one vendor is helping servicers comply with new regulation. We have learned that Mortgage Cadence, LLC, a provider of enterprise lending solutions (ELS), default servicing technology and document services for the financial services industry, addressed how the Reprise Consumer Direct Portal delivers servicing automation to effectively respond to coming mortgage reform. Mortgage Cadence Reprise is a Web-based solution that helps servicers convert troubled mortgages into performing assets. In a world where losses have become the new normal and mortgage reform is on the way, automation like Reprise is essential.

Why is this important? “Recently, the state attorneys general and federal regulators submitted an extensive term sheet to the nation’s largest banks that outlines proposed requirements to overhaul mortgage servicing procedures,” stated Molly Curl, bank regulatory national advisory partner. Some of the key points from the term sheet and its implications for mortgage servicers include:

Loss mitigation requirements: Mortgage servicers would be required to thoroughly evaluate borrowers for all available loss mitigation options before foreclosing.

Dual track prohibited: Servicers would be prohibited from initiating a foreclosure or filing a motion for relief from a bankruptcy plan while a modification evaluation process or application for a loss modification program is pending.

Borrower communication and documentation: Servicers would be required to provide borrowers with a single point of contact to handle any loss mitigation communications.

Development of comprehensive loan portals: Mortgage servicers will need to develop loan portals where borrowers can access loss mitigation information, and submit and receive documents.

In response to these new rules, Mortgage Cadence Reprise offers features to meet all of the requirements allowing servicers to remove manual and inefficient processes in order to stay competitive in a constantly changing industry. This technology gives servicers and consumers the tools to efficiently achieve affordable and sustainable mortgage programs for their borrowers while increasing the value of their distressed mortgages by re-establishing them into performing loans. Reprise speeds the loan modification and short sale process via workflow automation, data validation and analytics, dynamic document generation and consumer-direct communication tools. In addition, the Reprise consumer direct portal allows borrowers to securely upload documents through their servicers website. The documents are instantly and automatically catalogued upon receipt, while workflow tools queue tasks for servicers to help them focus on the accounts they can resolve quickly.

“With mortgage reform clearly on the horizon for mortgage servicers, the need to embrace automation and provide consumer facing tools is more critical than ever,” stated Dan Goldman, Mortgage Cadence’s executive vice president for Reprise.