This is a single-family/residential course.
MBA Education is dedicated to accommodating today's busy professional by offering short, accessible learning programs that can be completed in less than an hour. Our new module library contain excerpts taken from more in-depth courses. This module is an excerpt from our Loss Mitigation self-study web-based course.
The loss mitigation counselor's role has become central to any discussion about the industry's role in the recovery of the housing market. Federal regulations, investor controls, and individual state statutes strive to regulate the activities of loss mitigation staff and in many ways drive the loss mitigation process.
The counselor performs the following critical tasks:
- Investigates the causes of the delinquency
- Assesses the borrower's current situation
- Determines the borrower's willingness and ability to cure the delinquency
- Negotiates the best loss mitigation option
The results of these inquiries help the counselor determine what course of action best suits the situation.
However, loss mitigation involves more than just analyzing the borrower's situation in the context of servicer, investor, and insurer rules. It also involves selecting and obtaining approval for a loss mitigation option, maintaining communication with the borrower, acquiring relevant information and documentation, formalizing retention workouts, and following up on the process.
Loss Mitigation Processes examines the general loss mitigation process. We will begin with an overview of process considerations in selecting and approving a loss mitigation option. Next, we will describe how servicers can communicate effectively with borrowers in default and explain why communication is critical to the success of the loss mitigation process. We then address the acquisition of information and documentation during the workout process. Near the end of the course, we examine the formalization of various retention options. We conclude the course with a look at follow-up procedures for short sales and deeds-in-lieu of foreclosure.
Selection and Approval
Communication with Borrowers
Acquisition of Relevant Information
Formalization of Retention Workouts
Follow-Up on Disposition Options
Seat time approximately one (1) hour.