Wolters Kluwer launches pre-foreclosure tracker
Many mortgage servicers are becoming overwhelmed by the growing number of loans going bad and in need of fixing.
So, in order to make tracking the larger volume easier, Wolters Kluwer Financial Services is launching a new software system to manage pre-foreclosure documentation in order to adequately manage "large spikes in foreclosure volumes with limited in-house resources," the firm said.
The Minneapolis-based firm said Tuesday its Pre-Foreclosure Manager will also allows servicers to reduce the risk of non-compliance with state and federal regulatory requirements as well as government lending program guidelines.
"It’s clear the number of home loans in foreclosure will continue to rise or at least remain steady for the foreseeable future," said Art Tyszka, director of mortgage document services at Wolters Kluwer. "Servicers will need to adopt robust compliance and fulfillment strategies to accommodate the large number of loans in default."
Servicers submit data for loans entering foreclosure to Wolters Kluwer, which then creates default notices compliant with state and federal regulatory requirements, as well as government lending program guidelines, the firm said. The documents are printed and mailed to borrowers by the firm.
The Pre-Foreclosure Manager uses a Web-based portal where mortgage servicers can access and review all notices and documents associated with a loan file. This structure enables servicers to track the generation, mailing and fulfillment of notices.
U.S. foreclosure inventory shot up in February and now outpaces foreclosure sales more than 30 to 1. According to Lender Processing Services' Mortgage Monitor, the current delinquency rate is 4.15%.
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