Loan Servicing Review Includes:

• All available servicing activity is reviewed, to evaluate compliance with the related agreements and prudent industry servicing practices
• Loan Servicing evaluations include a review of:  
  • Servicing notes related to delinquencies, including the frequency and timeliness of borrower contact, inspections, delinquency reports to investors, mortgage insurers, etc.
  • Servicing notes related to borrower contact (will identify miscellaneous issues, such as tax payment errors, insurance errors, ARM adjustment errors, etc.)
  • Loan histories including accurate payment application, escrow disbursements, fees, etc.
  • Mortgage Insurance (MI), to determine proper coverage levels, as required by the sale/servicing agreements
  • “Stop advance” timing - determine if compliant with servicing agreement requirements 
  • “Charge off” timing - determine if compliant with servicing agreement requirements 
  • Timeliness of foreclosure filings and foreclosure sales
  • Analyze Real Estate Owned (REO) activity, to determine if acceptable
  • Timeliness of submission of mortgage insurance claim(s), including pool/lender paid mortgage insurance, and subsequent follow up
  • Timeliness of remittance of mortgage insurance and other loan proceeds to the Trust
  • Timeliness of loan liquidation, as related to the receipt of sale proceeds
  • Cancellation of hazard insurance, either borrower paid or forced placed, at time of liquidation and refunds remitted to the Trust
  • Appropriateness of the types of expenses claimed to the Trust for reimbursement

     

• Written summary of findings, including:  
  • Loan level reports, outlining findings and highlighting areas of concern
  • Management reports indicating trends, issues and areas of sub-standard Servicer performance

Expected Results: 

• Most errors found will not result in a repurchase, but a reimbursement from the Servicer to the Trust 
• Patterns for Servicer errors detected may affect a significant number of loans
• Patterns identified may allow the Client to focus on additional loans, with the same characteristics, to expand the review population
• Findings will be stored and tracked to identify trends/issues.  This knowledge will then be applied to future loans/pools serviced by the same Servicer
• Clients may utilize information and data gained from servicing reviews to open dialog and influence improvement of the Servicer’s processes and performance 

Reimbursement Counsel and Recovery Support Services, including: 

• Contractual document review, including:
  • Sale and Servicing Agreement
  • Other securitization documents and/or underlying contracts
    
• Client meetings to discuss loan servicing review findings, progress and recommendations
• Reimbursement claim support, including:
  • Communicating and explaining servicing findings to the Client – clarifying details
  • Assisting the Client in matching findings to contractual documents related to servicing requirements
• Preparation of reimbursement demand letters, at the Client’s direction, together with timely follow up
• Ongoing rebuttal support, including conference calls, rebuttal letters, etc.
• Reporting to exceed the Client expectations, including:
  • Outstanding vs. resolved servicing reimbursement demands
  • Issue summarization/overview reports