WASHINGTON--(BUSINESS WIRE)--Last month, the Consumer Financial Protection Bureau (CFPB) released final rules which will take effect on Jan. 10, 2014, intended to “protect consumers from detrimental actions by mortgage servicers and to provide consumers with better tools and information when dealing with mortgage servicers.” These rules for borrower outreach, communication coordination, and overall treatment are embodied in Hope LoanPort (HLP) and through its consumer direct portal, Homeowner Connect™ (www.homeownerconnect.org). Proper use of HLP helps the servicer facilitate compliance with the new guidelines, for both an existing servicing portfolio as well as servicing transfers.
“Technology will lead the way in helping servicers more effectively communicate with consumers who want to work out their mortgage situation in a timely manner”
Under the CFPB servicing requirements, policy and procedures must be designed to ensure the servicer can provide the consumer with timely and accurate information. With HLP, the servicer sends real-time status updates and communications directly via the portal to the homeowner or their authorized third-party representative. HLP provides a transparent communication platform for case information, such as the disposition of each document submitted and any requests for additional information. All stakeholders with access to the case in the portal have a traceable receipt of transmitted case information and documents, and the consumer receives consistent, direct servicer feedback on document review and case disposition.
Additionally, the CFPB’s requirement for maintenance of loss mitigation activity records is reinforced by the portal’s ability to store all case documents in one repository, as well as provide a record of all time-stamped communications.
Homeowner Connect aligns with the CFPB servicing rules by using HLP’s robust communications platform to allow consumers to directly submit their application and all required electronic documents to their servicer. Consumers maintain continuity of contact through the communication life cycle via status updates and direct communications.
“What the CFPB standards show is that, along with other compliance items such as the National Mortgage Settlement, OCC Consent Orders, GFE Guidelines and the California Homeowners Bill of Rights, we have seen a unified national servicing standard take form, and Hope LoanPort provides the unified national platform for servicers to align to new regulations,” HLP's president and CEO Camillo Melchiorre said, “We encourage all mortgage servicers to include Homeowner Connect as an option for their customers to initiate a foreclosure alternative solution in the early stages of the communication lifecycle.”
CFPB guidelines also require a smooth, transparent transition when a servicing transfer occurs. HLP facilitates this through a complete electronic transfer of in-process foreclosure alternative applications. This electronic transfer means that cases can be transferred with no loss in continuity, no need to re-apply with the new servicer, and no risk of lost documents.
“Technology will lead the way in helping servicers more effectively communicate with consumers who want to work out their mortgage situation in a timely manner,” said Sanjeev Dahiwadkar, CEO and president of IndiSoft, which provides the technology for HLP. “Servicers are looking for any means necessary to help manage their portfolios while meeting the needs of borrowers and technology is the most logical means.”
Hope LoanPort was cited as a model portal to facilitate compliance with the National Mortgage Settlement (Settlement) in February 2012. The CFPB’s servicing guidelines have a longer term impact than the Settlement, since they do not sunset in 2015, and include the entire servicing industry, not just the top five servicers.
Hope LoanPort, powered by RxOffice®, and a member of the HOPE NOW Alliance, is a web-based tool that streamlines foreclosure alternative applications on behalf of borrowers at risk of foreclosure, allowing housing counselors to efficiently transmit completed applications to mortgage servicers. To date, Hope LoanPort has registered more than 4,000 counselors, in 50 states, the District of Columbia and Puerto Rico. These counselors have access to over 2,400 users from mortgage servicers managing over 85 percent of the residential mortgages in the United States. For more information, please visit www.hopeloanportal.org.
Homeowner ConnectTM, a division of Hope LoanPort, provides homeowners with the tools and knowledge necessary to make informed decisions towards pursuing a foreclosure alternative. For more information, visit www.homeownerconnect.org.