First American Rolls Out Loss Mitigation Management Platform
First American Default Technologies, a subsidiary of The First American Corp. (FAF), said Tuesday that it had rolled out a new loss mitigation module within its flagship VendorScape default management platform; the move marks the extension of VendorScape beyond its traditional reach as a case management platform for attorneys and service ordering platform. The company said the new loss mitigation module evaluates loan properties, borrowers' interview results and financials, and recommends available work-out plans; clients can configure custom business rules that extend beyond standard investor guidelines. Much like managing service orders through the the existing VendorScape platform, the loss mitigation module enables electronic ordering of third-party services tied to loss mitigation assessments, including broker price opinions, documents and credit reports. First American's VendorScape is one of three or four major software platforms used for case reporting by attorneys in the default and foreclosure management space; the company first rolled the VendorScape platform out in August of 2003. Any attorneys working with First American's default outsourcing divisions are required to use the platform to report on case statuses; doing so streamlines First American's own reporting back to clients, including major servicers. "We are aligning the servicer, attorney and all parties involved in the workout process on a common platform," said Bob Thornton, president of First American Default Technologies. "Everyone’s goal, from the servicer to the consumer, is the fastest, most accurate workout. This solution promotes consistency, addresses rapidly changing regulations and quickly and accurately processes and completes workouts." The platform's rollout comes as numerous servicers are pushing loss mitigation efforts out well beyond traditional boundaries, and even asking attorneys to engage in loss mitigation efforts during the foreclosure process as well. "Market conditions, regulations and backlogs regarding loss mitigation are changing daily," Thornton said, who said the new loss mitigation module within VendorScape was able to "bring all parties together" by virtue of the platform's purpose -- managing process and vendors (First American, like many outsourcing companies, characterizes attorneys as vendors). The move to extend VendorScape into loss mitigation comes as another First American subsidiary, First American Loan Production Solutions, recently rolled out a complete loss mitigation outsourcing solution as well. Other companies have also stepped into the loss mitigation services space in the past six months, including LandAmerica Financial Group, Inc. (LFG), whose eZLoan Optimizer targets automation of the decisioning process much like the new VendorScape module rolled out by First American. For more information, visit http://www.firstam.com. Disclosure: The author held no positions in FAF or LFG when this story was published; indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.