The mortgage industry is seeing innovation in the loss mitigation side of the business at a pace unrivaled at any time in the industry’s history — firms like Titanium Solutions, Inc., which provides in-person homeowner counseling services, as well as newly-introduced loss mitigation analysis and outsourcing platforms from major title companies, are seeing demand for their services soar as servicers face a growing tide of troubled borrowers and an increasingly complex set of requirements for how to best assist them. That spirit of innovation is extending to the creation of new companies as well, with Aliso Viejo, Calif.-based ModCo LLC saying earlier this week that it had launched ModCo Solutions, a new division created to help mortgage servicers cope with increasing foreclosures and changes in mortgage servicing laws. The company combines in-person homeowner counseling services with a range of on-the-ground property services, including valuation & inspections as well as general field services. ModCo Solutions was started in the past few months, according to Erin Forbes, senior vice president. “One of the major servicers asked us to perform an outreach campaign, and so we expanded the service to others,” she said in an email. While new, the company already has a national network of 13,000 real estate professionals, according to a company press statement. The company can manage outreach to borrowers using it’s in-house automated reporting system to meet due diligence requirements; property and occupancy inspections are provided along with valuation and tax certification data, and each campaign is tailored to meet the need of each individual servicer. It’s a model that differs from the loss mitigation outsourcing efforts introduced recently by firms like LandAmerica Corp. (LAF) and the First American Corp. (FAF). Both firms have rolled out end-to-end solutions designed to analyze loan pools and determine at-risk or troubled borrowers, as well as a recommended course of action and even document preparation. “Servicers likely will need both sorts of services,” said one source, an industry consultant that asked not to be named. “One will help them pinpoint problem areas, and the other can help them get a solution in front of the borrower on-the-ground early in the cycle.” For companies like ModCo, too, recent legislation has likely put in-person counseling into the spotlight. On July 8, California governator Arnold Schwarzenegger signed SB 1137, which requires lenders to contact homeowners and explore restructuring options before initiating the foreclosure process. Under the new law, lenders must wait for at least 30 days after either contacting a borrower or documenting due diligence to do so before filing a notice of default. For more information, visit http://www.modcosolutions.com.