First American Loan Production Solutions (LPS), a member of the First American Corporation family of companies and a provider of document and loan fulfillment services, has expanded its borrower identification data and workout options to create a complete loan modification solution designed to help servicers prevent foreclosures.
The new offering combines credit scoring, valuation services, risk modeling, scoring, document preparation and document recording to identify borrowers who are most at risk of foreclosure. Based on this information, borrower refinance and workout options are presented, and documents required to complete the loan modification process may be efficiently created and recorded.
The solution enables servicers to proactively monitor their portfolios and pinpoint loans that are at risk of foreclosure so that preemptive loss mitigation steps can be taken, First American LPS says. Identified loans are monitored, analyzed and then slotted into alternative qualifying programs, such as reverse mortgage or refinance. Servicers are able to choose the end-to-end solution or select individual components, such as at-risk alerts, agency and proprietary documents, vetting and prioritization of borrowers for different programs, e-presentation and signing and recording.
The solution is available to HOPE NOW, an alliance of various mortgage market groups that aid distressed homeowners, which estimates that of the 718,000 subprime adjustable-rate mortgage loans scheduled to reset between January and May 2008, only 5.3% have been modified.
Source: First American Loan Production Solutions
