Cost Control, New Efficiencies
All is not doom and gloom. We have responded with systems, technologies, personnel and organizational behavior that cuts costs, reduces staff requirements as much as possible, and improves accuracy. At the same time, we must have some flexibility and adhere to ethical standards. As an example of the former, we may be able to identify candidates (in or out of bankruptcy) that would be appropriate for different loss mitigation options. As handled by a firm's loss mitigation department, this strategy often retains home ownership for the borrower while reducing servicing and foreclosure costs and improving the lender's portfolio yield.
Clearing the Way
A key factor of success is identifying bottlenecks in the foreclosure process. One such issue has been the ability to secure clear title on a property. The culprit, in most cases, is sloppy work on the origination side. One solution implemented by my firm was the creation of a title subdepartment within our foreclosure division. As soon as the problem is identified, our title attorneys and trained specialists start working in all directions to rectify the problems. This has helped to reduce the time frames on these problematic files substantially. Other firms have implemented similar programs.
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