Recent servicing guidelines and regulations have stressed the importance of maintaining transparency and traceability during the servicing transfer process. Hope LoanPort (HLP) has an established structure to facilitate the servicing transfer process by allowing existing cases to be transferred between registered mortgage servicers without any lost documentation or the need for homeowners in the process of a foreclosure alternative to start over. Registered servicers of HLP have access to this existing platform for seamlessly transferring cases between transferor and transferee.
Mortgage servicing rules from the Consumer Financial Protection Bureau (CFPB) will require servicers to “maintain policies and procedures that are reasonably designed to achieve the objectives of facilitating transfer of information during servicing transfers.” In CFPB Bulletin 2013-01 Mortgage Servicing Transfers a focus of supervisory activities includes “… procedures the transferee had in place to identify loss mitigation in process (e.g., trial or permanent modifications, forbearance plans, or short sale/deed-in-lieu agreements) at the time of transfer.” This requirement for a smooth, transparent transition is facilitated by HLP through a complete electronic transfer of in-process foreclosure alternative applications. The portal provides a record of activities performed within the system, such as documentation uploaded from the homeowner or their authorized third party representative, and portal-based communications (such as messages and status updates) between the parties. HLP is designed to facilitate a complete record of the case and all internal messages both before and after the transfer, thus allowing the transferee the ability to immediately pick up on a case exactly where the transferor left off. By utilizing an electronic transfer of all case records, there is no loss in continuity of communication, no need for re-applying with the new servicer and no risk to lost documents.
Servicers who have acquired default portfolios from registered HLP servicers are encouraged to begin discussions with HLP in order to initiate the process of registering with HLP and receiving case information on mortgages they have acquired. “We look forward to working with servicers in order to ensure these loans are handed off in a timely and efficient manner,” said Camillo Melchiorre, HLP President and CEO. “The ability of HLP to provide these cases to the transferee helps keep their loss mitigation activities in compliance and also helps to ensure that the homeowner can continue their foreclosure alternative efforts in a seamless, transparent manner.”
Hope LoanPort, powered by RxOffice, and a member of the HOPE NOW Alliance, is a web-based tool that streamlines foreclosure alternative applications on behalf of borrowers at-risk of foreclosure, allowing housing counselors to efficiently transmit completed applications to mortgage services. To date, Hope LoanPort has registered over 4,000 Counseling agencies, in 50 states, the District of Columbia and Puerto Rico. These counselors have access to servicers managing over 85% of the residential mortgages in the U. S. For more information, please visit www.hopeloanportal.org.