FOR RELEASE
December 23, 2008
Loss Mitigation Web Portal –
New Path to Mortgage Loss Mitigation
NEWPORT, KY (Dec.23) Default
Mitigation Management LLC (DMM), in conjunction with the “Mortgage Issues
Liaison Committee” of the National Association of Chapter Thirteen Trustees
(NACTT) with the support of the Bankruptcy Judges in the pilot areas and others,
has developed a loss mitigation web portal for debtors’ counsel/attorneys to
submit loss mitigation and modification proposals on behalf of their clients (whether
in bankruptcy or not) directly to the loan servicers.
A pilot program was begun on
10/10/2008 in the Middle and Western Districts of
As a cooperative effort by
the actual working groups involved in the resolution of defaulted mortgage
loans, both the debtor’s counsel/attorneys and the loan servicers have refined
the process and committed to an electronic interface for sharing information to
provide timely and interactive analysis of borrower situations.
The loss mitigation portal
provides loan servicers with a borrower’s financial information on the loan
servicer’s forms and authorizes communication, especially if the account is in
Bankruptcy. The information allows the loan servicer to review the loan for
potential loss mitigation options and to communicate directly with the debtor’s
counsel or borrower (as indicated on the submission). The electronic exchange
of information via the portal increases the efficiency and decreases the wait
times with which loan servicers can complete their analysis. Participating
servicers agree to respond to loss mitigation proposals within 7 days of a
completed request.
According to DMM President
and CEO Joseph Smith, “In many cases, the electronic contact we provide
facilitates the first active communication between the distressed borrower (or
their representative) and the loan servicer.”
Over 35 loan servicers and
over 200 Debtors’ counsel have been involved in the pilot program to date.
Original participants New South Federal, and Resurgent Mortgage, and an unnamed
special servicer, have now been joined by Countrywide and Bank of America,
Wells Fargo and their related companies, GMAC ResCap, Citi and its affiliates, Nationstar
Mortgage, three other unnamed loan servicers and DMM’s direct clients. The
other loan servicers involved in the pilot are finishing their evaluations and
will be making decisions on their future involvement.
According to Smith: “It has
been incredible to be involved in a program that began the first of August of
this year and through the cooperation of these normally opposed points of view
watch a tool be developed, tested and complete a pilot program in 5 short
months. This was not a government sponsored solution, these parties through
their own initiative worked together to create this solution and make it work
and address 80 to 90% of the mortgage market. The portal and direct communications
through the attorneys and the loan servicers also addresses another issue
facing our society and that is “borrower relief scams”, by having licensed and
insured parties represent the borrowers instead of scam artists. There is no
cost to the debtors’ counsels for using the system.”
If you are interested in more
information on the BK Loss Mitigation Web Portal, contact Joe Smith at
800-481-1013 or joe.smith@defaultmitigation.com
and the web portal can be found at www.dclmwp.com.
DMM is a special loss mitigation provider for loan servicing companies along
with its default law firm partners and is a founding member of C.A.R.E.S.
Corporation (The Committee for Actual Real Estate Solutions).