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CoreLogic has released its fourth out of a series of four white papers entitled Foundation for a Sound Housing Market addressing the high-level aspects of the challenges today's mortgage servicing sector is facing.
This edition of the Foundation for a Sound Housing Market series, entitled Mortgage Servicing, discusses the challenges the servicing industry is facing moving forward following reform in the aftermath of the 2008 housing market collapse. Those challenges include the many new policies and laws that are in effect and constantly evolving.
Other key issues discussed in the white paper include mortgage servicing models available and the specific risks associated with each one; assessing the cost of servicing non-performing loans, which has been made more difficult by increased regulation; the burdens servicers faced due to an increased number of subprime and non-performing loans that led up to the housing market collapse in 2008; how servicers can thrive in the new heightened regulatory environment by better coordinating with local, state, and federal regulators; and how to balance maximizing investor returns and sustain operability while delivering the highest quality of customer service.
"As the industry restoration goes forward, it's important to keep in mind that the ability to aggregate and service mortgage loans, or subservice others' mortgage loans, is a key component of efficient and effective primary and secondary mortgage markets," the white paper said. "In addition, the ability to grow the market and offer loan servicing on both performing loans and non-performing loans will continue to be a driver of housing finance pricing and execution."
The first in CoreLogic's Foundation for a Sound Housing Market white paper series, ATR/QM Standards, was released in October 2013, followed by QRM and Risk Retention Standards in December 2013 and The Home Mortgage Disclosure Act in April 2014.
