Loan Servicing

Situation
It’s important to stay on top of the activity of every loan you portfolio and service.  When a loan falls into delinquency, even for 30 days, it could be a minor glitch or a sign of impending default.  Without good tools that allow you to accurately assess loan risk, you can’t predict what is likely to happen.  There’s little you can do beyond sending notices and making phone calls you hope will provide answers and action.  If the loan is heading into default, every day you don’t act is a day closer to loss.

Executive view
In today’s unpredictable market, the last thing you want is a property returned to you for resale.  Staying on top of delinquent loans allows you to establish a workout strategy at the earliest possible time to prevent default, unwanted REOs, and associated losses.

When a loan has passed into default, it’s important to have an objective, accurate understanding of property value and the current market conditions in that geography.  Having a good picture of the property and market allows you to determine the wisest course of action to minimize the loss.   

Solution
First American CoreLogic’s comprehensive suite of automated tools plus expert services enables servicing organizations to zero in on problem loans to check current value against value at origination and look for possible fraud.  Batch processing of multiple loans lets you know where you stand by making it possible to get information on loans as soon as they are delinquent.  The correlation between collateral risk and default also provides an indicator you can use to guide action.  By using First American CoreLogic’s collateral risk score alone or in combination with Freddie Mac’s Early Indicator Score, you can prioritize handling and determine the most effective course of action. 

Our single-source approach also allows easy access to geographic information systems to provide a complete situation snapshot.  Armed with full information, you can decide on a strategy, contact the borrower knowledgeably, and take decisive legal action when needed. 

First American CoreLogic also enables you to deal skillfully with loans in default by providing objective property values and giving you an accurate sense of the local market conditions, including whether the market is appreciating, depreciating, or already saturated with REOs.  From that information, you can better determine whether a short sale or foreclosure is the best approach.  Our tools also make it possible to get a clear picture of value on an REO by providing data to compare against appraised values. 

At every stage of dealing with a troubled loan, First American CoreLogic offers fast, precise tools that help minimize the possibility or impact of a loss.