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Incentivized Change™
Current Issue: Mortgage Servicing Practice
CHANGE. There are two components of change:
- 1st PAIN: Change is only possible when the pain of not changing is so intolerable to all industry participants that no participant can endure it any longer.
- 2nd LEADERSHIP: Change requires leadership. Leadership requires dedication and commitment with vision and courage.
CALL TO ACTION: It is now time for the entire industry, individually and collectively, to step up and put forth its best practices and live or die by them. Each respective business function should first develop its own set of “Objectively Obtainable Best Practices™” reconciled with “Optimal Operational Controls™”. No one knows better than (you) the lender, servicer, foreclosure and bankruptcy attorneys in the daily grind. You are each the functional experts of your practice area and can supply a best practices guideline that can serve as a blueprint for new revised best practices.
Objective Standards – the industry should embrace Objective Standards that allow for “Obtainable Safe Harbors™”. Otherwise the industry will get legislative best practices with potentially non-obtainable subjective and objective standards! “Obtainable Safe Harbors™” not only provide sensible operational management controls (like the NACTT New Best Practices (Deb Miller) and the New Standard & Poor’s Best Practices, (Ed Highland), which lead to a more refined, efficient and fair operation, but “Obtainable Safe Harbors™” can lessen LITIGATION AND OPERATIONAL RISKS and act as a DEFENSIVE TOOL in civil and criminal litigation and governmental investigations.
- The biggest defensive or check-mate move that the industry can take is to reach deep down into the functional knowledge base of its members; have each develop its respective best practices; and then have the industry comprehensively reconcile those controls and best practices.
- The AFN and the Coalition for Mortgage Industry Solutions will stand ready to comprehensively reconcile such controls and best practices in its working groups if you – the experts – will step up and agree to produce an outline of your best practice suggestions. You may reach me at - Click Here.
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IncentivizedModifications™
Loss Mitigation Solutions and Principal Reduction Modifications
Must Have True Incentives for the Borrower, Lender, Servicer and Investor,
Otherwise the Mortgage Industry & Economy Will Suffer.
ProCouncil™ Advisory offers a voluntary Optin framework
in which to offer such incentives. The following HotNeutral™ products offer such advantages:
OptInMods™
BKMods™
DefaultReferral™
OptInSettlement™
Shared Built In Equity Mods™
QBieSam™ or Quarantined Built In Equity Shared Appreciation Mods™
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Loss Mitigation & Incentivized Modifications
Problem: Overwhelming Backlog of Loans In Need of Special Default Servicing Loss Mitigation
Solution: We Deliver Loss Mitigation Solutions and Principal Reduction Modifications
with Incentives for the Borrower & Lender/Servicer/Investor
The volume and numbers are overwhelming. The industry must act quickly to handle the ever-growing backlog of borrowers in need of immediate loss mitigation and new principal modification solutions. HotNeutral™ products like OptInMods™ will be used by lenders/servicers under a “confidential” and “neutral” OptInSettlement™ program offered by major lenders, servicers and consumer counselors, to negotiate interest, principal reductions (Shared Built In Equity Mods™) and repayment terms. HotNeutral™ products like QBieSam™ or Quarantined Built In Equity Shared Appreciation Mods™ can deliver true “affordability” for the borrower and supply incentives for all parties including the investor, lender, servicer and borrower. As exclusive Master Licensee of HotNeutral™ products,
a few of our new powerful tools include:
*OptInMods™
BKMods™
DefaultReferral™
*OptInSettlement™
*Shared Built In Equity Mods™
*QBieSam™ or Quarantined Built In Equity Shared Appreciation Mods™
DefaultReferral™ will be used to coordinate the referral of OptInMods™ and OptInSettlement™ programs from lenders, servicers and foreclosure attorneys as an alternative to foreclosure. HotNeutralWingSpan™ will receive and coordinate the negotiations for lenders and servicers with borrowers at its Wingspan special default servicing center, headquartered in Plano, Texas. Alternatives for costly Foreclosure require incentive programs that motivate default loss mitigation over foreclosure procedures. Our new DefaultReferral™ system is backed by our HotNeutral™/AFN®national network of legal experts. The AFN and its handpicked national legal group has the exclusive HotNeutral™ license to implement BKMods™, OptinMods™,OptinSettlements™, OptinSafeHarbors™, LitigationFreeZone™, DefaultReferral™, and Confidential Strategy™ products and solutions.
Why we are different:
Although, we are made up of industry lawyers and expert professionals, we can act as a “neutral” and “confidential” third party, or advocate, to coordinate the activities of the many players involved in any delinquency, investigation, or litigation risk, while establishing safe harbors, revised (best) practices and litigation free zones to protect you from actual and contingent risk going forward. We are the exclusive Master Licensee of HotNeutral™ litigation, risk and default servicing mitigation products, including OptInSettlement™, LitigationFreeZone™, and OptInSafeHarbors™ which are endorsed by AFN; who directly or indirectly perform over 86% of all the Foreclosure, Loss Mitigation, Bankruptcy and R.E.O. related work in the U.S.
Litigation, Risk & Default Servicing Mitigation Products, Solutions
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Confidential Strategy™
OptInSettlement™
LitigationFreeZone™
OptInSafeHarbor™
DefaultReferral™
HotNeutral™
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HotNeutral™ | OptInSettlement™ | LitigationFreeZone™
OptInSafeHarbors™ | ConfidentialStrategy™
Sbiem™ | Shared Built In Equity Mortgage™
QBieSam™ | Quarantined Built In Equity Shared Appreciation Mods™
BKMods™ | OptInMods™
DefaultReferral™
Opt In Safe Harbors™ can supply the framework for resolution within a Litigation Free Zone™ that affords the opportunity to fashion equitable reconciliation for all related participants.
Certain laws, regulations and cases have shaped the new circle of liability for the mortgage industry participants. These authorities along with new controls for best practices and proactively “revised” administration and management policies or practices, can safeguard industry participants including lenders and servicers from loss severity or litigation risk severity.
Opt In Safe Harbors™ is a voluntary outreach by each participant in an effort to seek compliance with practical and sensible management controls or the implementation of revised practices for the betterment of each participant.
One example related to Servicers/Lenders, Foreclosure and Bankruptcy, illustrates the need for Opt In Safe Harbors™ as it relates to the recent new best practices adopted (on or about June, 2008) by the NACTT Mortgage Committee in a document entitled: BEST PRACTICES FOR TRUSTEES and MORTGAGE SERVICERS IN CHAPTER 13. This is a hotly contested move by some participants in the industry. The NACTT Mortgage Committee states: “…we recognize that there may be other acceptable procedures. Therefore, we remain open to further discussion and review.”
In recent cases, Chapter 13 Trustees and (Unsigned) Debtors have standing to bring claims on a confirmed plan as a contract. RESPA and (Implied/Good Faith) contract claims against Lender/Servicers are not preempted by bankruptcy. Regulation (or plan) exemptions from providing an Annual Escrow Account “Statement” does NOT EXCUSE the Servicer from conducting Annual Escrow “Analysis” and providing “Notice” of account deficiencies or shortages at least once a year per 24 CFR Section 3500.17(a).(c)(3),(f)(5),(i)(1,2). In other recent cases, the courts have denied punitive damages claims against banks/lenders who have “revised” their practices.
As recent laws, regulations and cases have greatly enhanced liability exposure, the need for voluntary resolution of such issues or lawsuits is now paramount. Opt In Safe Harbors™ and Litigation Free Zone™ can provide the framework to such resolution.
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For information click here.
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