Mortgage servicers are urging the incoming administration to standardize and simplify loss-mitigation frameworks to improve efficiency and reduce borrower confusion, exacerbated by varying federal agency strategies.
Matt Tully, chief compliance officer at Sagent, highlighted the operational difficulties resulting from the lack of alignment in loss mitigation strategies across federal agencies, saying, 'You've got a scenario where everyone’s gone down their own path.'
Krista Cooley, a partner at Mayer Brown, pointed out that current loss mitigation options, influenced by COVID-19 policies, have yet to evolve, resulting in ongoing servicer challenges: 'They haven't sort of figured out how to implement the lesson we've learned.'
Industry experts expressed that loss mitigation processes in the conventional mortgage space, primarily managed by Fannie Mae and Freddie Mac, remain more manageable compared to those within federal agencies.
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