Altisource product will help servicers cut losses on FHA assets

Bundled FHA product launched by mortgage tech firm

Altisource product will help servicers cut losses on FHA assets

A new product has been launched that will help mortgage servicers determine costs and loss-management strategies for FHA assets.

Altisource says that its research shows that 86% of mortgage servicing professionals said their organization services FHA loans and 72% expect the volume of FHAs to increase over the next 12-24 months. More than three quarters of respondents say the increase is expected to exceed 25%.

The extra cost incurred when foreclosed loans are required to be conveyed back to HUD makes a product that can help mitigate and reduce these costs welcome.

“Now is the time for servicers to review their internal capabilities and ensure they engage the best and most experienced vendors to effectively prepare for a growing FHA portfolio,” said Patrick G. McClain, Senior Vice President of Equator and Hubzu Auction Services for Altisource.

How the product helps
Altisource’s FHA offering typically begins with asset oversight at the 60-day delinquency mark and extends through the first Claims Without Conveyance of Title (CWCOT) sale and, if required, the second chance sale.

The firm’s residential loan default software and marketing solution, Equator, then helps servicers manage the asset marketing and conveyance process (including field services, valuations, title services, online marketing and auctions) from one place.

The platform includes a proprietary FHA model that leverages the data feeds and workflows to help optimize outcomes for servicers. Its features include:

  • Market Analysis – Provides comprehensive data for assets under management, allowing for re-optimization throughout the post-sale lifecycle.
  • Forecasting – Indicates the estimated cost of conveyance and holding timeline to compare various disposition processes and outcomes, including potential servicer contributions.
  • Actionable Data – Displays percentages of profitability and potential gain/loss for each potential decision based on current market data.
  • Records – Stores a history of multiple model outputs in one location to keep record of an asset containing all modeled values, user edits for tuning, strategy decisions and commentary for collaboration on execution.

“Our FHA modeling tool, in combination with the bundled Altisource FHA products, offers servicers the potential to mitigate some of the costs and risks associated with conveying assets back to HUD, and view the status and results through Equator,” added McClain.