On August 30, several members of the Mortgage Servicing Collaborative’s data subgroup met to discuss our data request for work stream #1. The purpose of the data request is to identify pain points and to better quantify the costs involved with servicing nonperforming mortgages, with a focus on FHA’s foreclosure, loss mitigation and conveyance processes. Upon gathering and analyzing the data, we aim to put forward a set of concreate recommendations that may include alternative actions that avoid the expensive, time consuming conveyance process, and the potential year or more it leaves a property in limbo. In addition, we are separately reviewing the time and costs incurred at each stage of the process to put forth recommendations that would reduce and potentially align timelines with the GSEs.
Next steps: The Housing Finance Policy Center continues to collect and analyze data received from MSC lender/servicer members and aims to have draft work products by the end of October.