The Client
A Residential Mortgage Services
Challenge
- 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 service's’ 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.
Solution
- Coforge's compliance audit and QC platform, 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
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.
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
Download PDF
