[1]Nationwide Title Clearing, Inc. [2] (NTC), a research and document processing company, recently announced [3] that it will now offer a complete collateral file audit and remediation service [4] that can be tailored to specific portfolios, investors, and objectives. This new offering is intended to reduce risk of buyback requests, increases certainty on reps and warrants from buyers, and increases value of assets presented for sale.
The audit service will take the collateral files and have the documents audited using NTC’s document research and retrieval methods to bring the files up to a transferable standard, after which final results are reported, the company said.
"The value of a mortgage-based loan portfolio is directly impacted by the completeness and accuracy-or lack thereof-of the collateral files of the loans of which it is comprised," said John Hillman, NTC CEO. "In some portfolios we have audited, we have found errors in 40 percent to 60 percent of the loans. Remediating the exceptions in these loans increases the value of the entire portfolio, and enables the owner of the portfolio to make more money with each sale."
NTC says that the main benefits of the new service are complete file management under one servicer, from shipping, storage, remediation, assignments, property reports, exception management, and reporting; reduction of money wasted from buybacks and/or reintegration into servicing departments; increased certainty about representations and warranties from buyers; and increased value of the assets presented for sale. The company also notes that the interest for the collateral file audit and remediation service is high, however, for most clients it is an investment with strong return.
NTC's collateral file audit and remediation service includes:
- File intake, inventory, imaging, and indexing.
- Complete collateral file creation (combined servicing and collateral file supplied).
- Audit of the collateral fully customizable to the client's specifications, by product, inventory, or intended disposition.
- Curative and remedial actions on any exceptions, missing collateral documents (mortgages, deeds, assignments, title policies), missing intervening assignments, complex assignment chain issues, title policies, lost note affidavit creation, lost affidavit creation and recordation.
- File management, including paid-in-full release services, assignment services, and optional default research/assignment services.
- A variety of property reports that can be customized to indicate lien position, broken assignment chains, current beneficiary, or current owner.
Click here [4] to read more about NTC's Collateral File Audit and Remediation Service.