The Ripple Effects of the Coronavirus

Industry leaders discussed the impact COVID-19 could have on federal regulations, foreclosure moratoriums, REO, tech, and more during DS News’ latest webinar, “The Regulatory Ripple Effects.”

The webinar, sponsored by Altisource, featured Travis Britsch, VP of Auctions, Hubzu; Trevor Hall, Director of Foreclosure Auction Services, Hubzu; Candace Russell, VP of Post Sale Activities in Default Servicing, Carrington Mortgage Services; and Marrisa Yaker, Managing Attorney, Padgett Law Group.

Yaker began the conversation with an overview of policies by the Federal Housing Administration (FHA) and the Federal Housing Finance Agency (FHFA). She added that the FHFA recently announced that foreclosure and eviction moratoriums have been extended until August 31, 2020.

Britsch discussed the history of foreclosure sales, saying sales were normally conducted by a sheriff or a “guy in a hoodie,” with the process having little to no technology

Prior to COVID-19, he said most servicers are using on a handful of default servicing platforms and there is no single centralized system of record across the U.S.—not even from county to county—to track foreclosures.

He added that since the Great Recession, several professional auction marketing companies have extended from REO into foreclosure sales. He said about half of the state now allow a professional auctioneer to market and conduct the foreclosure sale.

Hall added that since the coronavirus, there are signs enforcing the 6-foot physical separation between bidders, auctioneers and bidders are wearing facial masks, there is contact-less checkout, and there are specific time slots to reduce crowds.

Some of the technology that may come of the virus included simulcast auctions, electronic funds to eliminate cashiers checks, software for auctioneers, trustees, and bidders, and online only auctions.

If you missed the webinar, follow the link to hear a recording of the conversation.