TheMReport — News and strategies for the evolving mortgage marketplace.
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50 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T SERVICING THE LATEST LOCAL EDITION LOCAL EDITION Fannie Rolls Out Loan Mod Tool ITS NEW SERVICER-FACING OFFERING WILL HELP BOOST POTENTIAL AID FOR BELEAGUERED BORROWERS. DISTRICT OF COLUMBIA // Fannie Mae has unleashed a new tool that will help servicers analyze additional borrower information to determine more quickly whether or not a distressed homeowner qualifies for a Fannie Mae loan modification. As of December, Fannie Mae has updated its Servicing Management Default Underwriter tool to help servicers better analyze all of the criteria that determines the type of aid available to a troubled borrower. As part of a new policy change, servicers are now required to calculate a borrower's full mortgage obligation, including the entire outstanding principal balance, the amount past due, and other arrearages. Servicers can only determine whether a borrower qualifies for a modification program after analyzing all of this informa - tion at one time. The Servicing Management Default Underwriter tool allows financial institutions to reach these conclusions in a quick and efficient manner. "We are continuously look - ing for ways to help struggling Fannie Mae borrowers," said Joy Cianci, SVP, Credit Portfolio Management, Fannie Mae. "With this technology update, our servicers will be able to help more struggling borrowers sooner since we are implementing the policy change directly in the tool." A new policy, which requires servicers to look at more than the loan obligation during the loan modification assessment process, goes into effect March 1. However, the tool to analyze this criteria is already available, so borrowers and servicers will not miss a beat when the new modification assessment guide - lines take effect next month. Traditionally, Servicing Management Default Underwriter has been used by Fannie servicers to determine what foreclosure pre- vention options are available to bor- rowers with Fannie-backed loans. Complaints Fall at Ocwen FRAUGHT BY A LITANY OF LESS- THAN-POSITIVE FEEDBACK, THE ATLANTA SERVICER FINALLY SEES SOME RELIEF. GEORGIA // Ocwen Financial's mortgage servicing practices have been the center of much scrutiny among its customers, but new data shows that this picture is slowly but surely changing. The Consumer Financial Protection Bureau (CFPB)'s monthly consumer complaint snapshot showed that although Atlanta-based Ocwen is still listed among the top 10 most-complained- about companies, complaints are declining at this company. From July to September 2015, Ocwen had an average of 409 complaints. The majority was mortgage-related, and a small amount involved debt collection. Bank of America, Wells Fargo, JPMorgan Chase, and Nationstar also had a significant amount of mortgage-related complaints. Year-over-year, during this same time period from July to September 2015, complaints fell 19 percent at Ocwen—it was the only company in the top 10 to see a decrease this month. This will mark the second time in the CFPB's report that Ocwen complaints have fallen. The CFPB found that TransUnion (53 percent), Equifax (26 percent), Citibank (22 per - cent), Wells Fargo (16 percent), JPMorgan Chase (16 percent), Nationstar Mortgage (15 percent), Capital One (15 percent), and Experian (8 percent) all saw increases in the number of com - plaints at these companies. Bank of America was the only company to experience no growth or decline in complaints from July to September 2014–July to September 2015. SERVICING