Central Issues to Loan Servicers

Huge investments are being made to originate and acquire valuable mortgage servicing rights. The value of these servicing rights can be dramatically reduced if prepayment speeds are greater than anticipated, if delinquency and foreclosure experience exceeds expectations, or if loss occurs from loans that have been improperly set-up and adjusted incorrectly. Profit pressures demand that servicing rights be fully leveraged to deliver maximum expected returns.

Servicers cannot afford to have the value of their most important asset diminished, especially when convenient and cost-efficient solutions exist to preserve and protect these rights. Setup and adjustment errors on Adjustable & Variable Rate loans still go undetected despite pre and post-closing audits. Errors in Fixed Rate loans, though not generally as frequent, occur when payments are allocated incorrectly, and incorrect allocations corrupt amortization schedules. Due-diligence review with standard quality control does not address servicing errors...especially with ARMs! 

The MACC-TRAC ExpertAdvantage^© permits servicing executives to meet and exceed internal audit committee reporting requirements, respond to borrower inquiries and be assured that loans are being serviced according to the terms of the loan documents.

ARM and VRM Servicing Error Detection

Errors in servicing adjustable and variable rate loans can be expensive to the servicer, investor and borrower .