Protect Your Net Worth: Implement a Loan Loss Mitigation Strategy
Posted To: <a href="http://www.mortgagenewsdaily.com/channels/community/default.aspx”>Community Commentary
During our reviews of different companies, we ask operators what their process is for managing Loss Mitigation. Generally, the term, Loss Mitigation, is used to explain the process of negotiating terms between a lender and borrower when a loan is delinquent or in default. If done correctly, terms, such as loan modifications, are negotiated to help borrowers make payments and avoid foreclosure. Our focus on Loss Mitigation is the process mortgage bankers have developed to manage issues such as early payment defaults (EPDs), repurchase requests, and losses resulting from borrower misrepresentation. Purchase agreements between investors and mortgage bankers have specific language detailing the outcome when loans have EPDs or fraud. Essentially, losses resulting from these issues are the responsibility…(<a href="http://www.mortgagenewsdaily.com/channels/community/123965.aspx”>read more)
