Nationwide Title Clearing Inc. (NTC) has introduced a new collateral file audit and remediation service that reduces the risk of buyback requests, increases certainty on reps and warrants from buyers, and increases value of assets presented for sale.
NTC says the new service can be tailored to specific portfolios, investors and objectives. Collateral files are audited by a team of professionals who cure any exceptions through NTC's document research and retrieval methods to bring the files up to a transferable standard, after which final results are reported.
The principal benefits of this service, according to NTC, are complete file management under one servicer, from shipping, storage, remediation, assignments, property reports, exception management, and reporting; reduction of money wasted from buybacks and/or reintegration into servicing departments; increased certainty about representations and warranties from buyers; and increased value of the assets presented for sale. NTC reports that interest in the collateral file audit and remediation service is high, as for most clients it represents an investment with an immediate payback.
‘The value of a mortgage-based loan portfolio is directly impacted by the completeness and accuracy-or lack thereof-of the collateral files of the loans of which it is comprised,’ says John Hillman, CEO of NTC, in a release. ‘In some portfolios we have audited, we have found errors in 40% to 60% of the loans. Remediating the exceptions in these loans increases the value of the entire portfolio, and enables the owner of the portfolio to make more money with each sale.’
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