A new Web site that allows debtors’ lawyers to submit loss mitigation and modification proposals directly to loan servicers will exit its pilot stage and become available nationwide starting January 1.
“The Default Mitigation Management Debtor’s Counsel Loss Mitigation Web Portal”:http://www.dclmwp.com (DMM) gives loan servicers access to a borrower’s financial information from the loan servicer’s forms and authorizes communication, even when the account is in bankruptcy. Loan servicers can review the loan for loss mitigation options and communicate directly with the homeowner or their representative.

More than 35 loan servicers and 200 debtors’ counsel have been using the site during its pilot program, where it was available in the Middle and Western Districts of Tennessee and the Central District of California since early October. According to DMM president and CEO Joseph Smith, the Web site helps loan servicers complete their analyses faster, and participating servicers have agreed to respond to loss mitigation proposals funneled through the site within seven days of a request.
Smith added the program came together through the collaboration of servicers and debtor attorneys that participated in the pilot program without government influence, which is available at no cost to debtors’ counsel, and said the site has the potential to help cutback on borrower relief scams by increasing direct communication between lawyers and loan servicers.
“These parties, through their own initiative, worked together to create this solution and make it work and address 80 to 90 percent of the mortgage market,” Smith said.
The site is owned by the Newport, Kentucky-based Default Mitigation Management LLC, and has received the support of the National Association of Chapter Thirteen Trustees’ (NACTT) Mortgage Issues Liaison Committee and bankruptcy judges from the pilot areas.
Current site participants include New South Federal, Resurgent Mortgage, Countrywide, Nationstar Mortgage, GMAC, ResCap, and Bank of America, Wells Fargo, and Citi along with their affiliates.