In a recent announcement, Default Mitigation Management LLC (DMM), a loss mitigation company in Newport, Kentucky, recently announced new enhancements to its loss mitigation web portal. As part of this new expansion, loan counselors have been added, and the portal is now available for use by states and municipalities in connection with foreclosure mediation programs.

In collaboration with debtors counsel, loan servicers, and bankruptcy trustees, DMM’s loss mitigation web portal was founded in 2008 and aims to streamline communications throughout the loan modification process. DMM said it has already worked with and helped resolve thousands of borrower submissions. Since May 2009, the portal has received 2250 submissions. Of those, 92 percent have been opened, 33.47 percent have been closed, and 31.24 percent have been rejected.

In an effort to develop its loss mitigation web portal, DMM recently added loan counselors. According to Joseph Smith, president and CEO of DMM, the addition of loan counselors to the portal is a culmination of a project the company began in April 2009. He said DMM has always recognized the portal’s need for loan counselors, so the company offered it to all counseling alliances at no cost.

“The counselors that have made the choice and commitment to use the Portal are some of the best in the industry,” Smith said. “They understand how loss mitigation works and they put the effort into doing what’s needed to help the borrower, including submitting their documentation to the servicer.”

In addition, DMM has made its loss mitigation web portal available for use by states and municipalities in connection with foreclosure mediation programs. According to the company, the portal is an ideal way for the borrower to deliver all required documentation to the servicer in advance of the mediation, and the portal enables all parties to view the documentation and communicate with one another in real time.

Smith said using the portal for foreclosure mediation is the next logical step because unless the proper documentation has been provided beforehand, mediation is meaningless or requires multiple meetings. In too many cases the first mediation session is spent collecting information and documents or telling the borrower what to bring the next session, which is expensive and wasteful for everyone, Smith explained.

The portal is aiming to change this by ensuring all the proper documentation is delivered and reviewed by all parties, including judges and mediators, before the initial mediation session. Smith said this will allow everyone to focus on the core issue of keeping the borrower in their home, resulting in faster resolutions in a more cost and time efficient manner.
“Now that we have a counselor and borrower interface, the portal can easily be customized to meet the needs of any mediation program,” Smith said. Through its network of 135 law firms, DMM has provided loss mitigation services to loan servicers for over six years. The company is also working on expanding its portal to handle submissions directly from borrowers and expects this new interface to be available at the beginning of 2010.