In this article first published on LinkedIn, Black Knight’s own George FitzGerald – EVP of Servicing Technologies – looks into the incredible operational challenge the flood of forbearance plans has created for mortgage servicers in the wake of COVID-19. Excerpt:
“With the mortgage servicing challenges caused by the pandemic’s speed and severity, servicers can benefit significantly from a scalable technology solution that not only automates the loss mitigation workflow from end-to-end, but also is quick to implement and easy to use. This would certainly help servicers swiftly scale to support skyrocketing volume. It’s also critical that the technology is flexible enough to support the myriad of government and private sector COVID-19-related programs and policies.
This technology also needs to support all existing regulatory requirements resulting from the 2008 U.S. financial crisis. This will become especially important post-forbearance, when servicers will be faced with a deluge of repayment plans, loan modifications, foreclosure proceedings, short sales and mortgage releases….
…Black Knight, a leading provider of technology solutions to the mortgage industry, is uniquely situated to help clients adapt to the current crisis, by virtue of our robust automated servicing and default technology. The proven Black Knight Loss Mitigation solution, for example, is not only scalable and flexible, but also delivers end-to end functionality, built-in workflow and quality control capabilities. The solution, which is tightly integrated with Black Knight’s MSP loan servicing system, enables servicers to automate the management of forbearance today and better handle the repayment plans and modification programs needed in the future.
The Black Knight Loss Mitigation solution can be implemented in just a matter of weeks, enabling servicers who already use MSP to quickly get up and running with a robust, automated solution. Plus, with its highly intuitive interface, Loss Mitigation is easy for the team to learn and use, so a servicer can ramp up quickly to meet today’s demands.
In addition, this Loss Mitigation solution includes a streamlined process to evaluate borrowers for a forbearance plan – its workflow enables users to create plans immediately. Another crucial benefit of Loss Mitigation is that it systematically stops late charges, suspends foreclosure actions and automates appropriate credit bureau reporting on affected loans, all of which are required by the CARES Act.”
For more details on how Black Knight’s servicing technologies are helping mortgage servicers rise to this unprecedented challenge, read the whole article, “Managing the Massive Volume of Forbearance, Repayment and Loan Modification Programs Today and in the Future,” here.