CONTACT

1 Customer

  • A Residential Mortgage Servicer

2 Business Situation

  • In Loss Mitigation: Failure to notify borrowers in writing about the loss mitigation application being complete or incomplete within 5 business days OR
  • Failure to provide written notice outlining the servicers’ determination of available loss mitigation options within 30 days of receiving the complete loss mitigation application hence, violating Regulation X requirement
  • Impact - Failure to provide the notice in a timely manner prevents the consumer’s privilege to raise any concern or to dispute incorrect/ invalid debt owed on the account

3 Solutioning

  • SLK’s compliance audit and QC platfrom, Copasys:
    • Audits historical loss mitigation activity with pre-defined logic to validate the accuracy and appropriateness of various loss mitigation activities
    • Segregates the list of records where the loss mitigation application was received and automatically allocates a target end date by which the notifications are required to be sent to the consumers, either acknowledging the complete/ incomplete receipt of the application or advising the options approved after the review is complete

4 Execution

  • Records are classified as ‘Compliant’ when the required notifications are provided to the consumers on time and ‘Non-compliant’ when notifications are not provided at all or it was provided after the required timeline

5 Value Delivered

Initiating certain loss mitigation testing rules via Copasys coupled with effective remediation activities helps:
  • Significantly reduce the consumers risk of property loss due and/ or inadequate loss mitigation activities

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