Stewart Provides Solutions for HAMP Supplemental Directives
By: Brittany Dunn
The Treasury Department’s supplemental directives for the Home Affordable Modification Program (HAMP) have placed increased requirements on lenders and servicers
helping distressed borrowers. But Houston-based Stewart Lender Services (SLS), a wholly-owned subsidiary of Stewart Title Company, recently announced its ability to help national lenders and services comply with these directives in a timely, cost-effective manner.
“We offer the ability for a servicer to completely outsource a pool of loans where Stewart manages a property from loan modification through short sale, deed-in-lieu, and REO asset management and disposition,” said Scott Gillen, SVP of SLS. “Utilizing a proven outsource partner like Stewart is an effective and prudent approach for servicers to keep up with the pace of change in the loss mitigation arena.”
Supplemental Directive 09-09, Home Affordable Foreclosure Alternatives (HAFA), requires that borrowers be offered an alternative to foreclosure if they are unable to qualify for a loan modification.
SLS said it has an experienced borrower-outreach team and established workflows that can alert borrowers to the
foreclosure alternatives available under HAFA. The company can collect necessary financial packages from these borrowers and conduct the underwriting to establish their eligibility, and it can perform a title review up front to determine any impediments to completion of a short sale or deed-in-lieu of foreclosure.
Supplemental Directive 10-01, Resolution of Active Trial Modifications, is intended to convert HAMP from a “stated income” model to a “verified income” model. The directive’s new guidelines have servicers struggling to meet borrower review schedules and communication deadlines.
To assist with this, SLS can provide a fully-automated borrower correspondence and compliance solution. This solution ensures that HAMP deadlines for underwriting, review, and communication can be met, while taking the workload off already over-burdened loss mitigation teams.
In addition to these new directives, Treasury has revised imminent default rules. On top of debt coverage ratio, any borrower who is less than 60 days delinquent must be measured for imminent default and must be reviewed using the revised request for modification affidavit forms.
According to SLS, servicer workload will greatly increase under these new guidelines, and the underwriting review is more complicated that the previous HAMP preview. But the company said it has the expertise to address the additional underwriting requirements and the processes to reach out to borrowers and obtain the required additional proof of hardship.
“We’ve established our ability to work closely with clients, large and small, to ensure their loans are managed effectively,” said Jason Nadeau, president of SLS. “Our solutions enable servicers to outsource compliance with these new Treasury requirements while maintaining an effective loss mitigation process.”
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