So far this year, banks in the U.S. are failing at twice the rate they were last year. Now that the U.S. government is the country's largest mortgage asset investor, when a servicer gets into trouble, it's the FDIC or one of the former GSEs that step in to take over and liquidate the assets. Time is of the essence.
That's why NTC's new mobile imaging platform is being viewed as the most significant new advancement the industry has seen this year. Whether the institution is in trouble or just selling off a pool of performing loans, this new offering has demonstrated its ability to change the way the industry works for the better. When NTC announced the offering, it brought to light a much larger need in the marketplace and the financial savings to our clients was far greater than we envisioned. That's why we feel it qualifies for the prestigious Mortgage Technology Release of the Year award.
Nationwide Title Clearing’s mobile imaging and inventory services platform was designed to speed up and automate the process of bulk loan sales and acquisitions. The service can support any bank that is involved in a bulk loan sale or acquisition.
For instance, in the event of an emergency seizure by the FDIC, former GSEs or another investor because of concern over the solvency of a bank or qualification of a servicer, NTC’s mobile imaging team has the capability to go where the loan files are located before the final settlement of a loan transfer occurs.
The service can be performed on a rush basis to ensure that the new servicer that is assuming the loans would have a head start knowing what is in the files and be prepared the first day it takes over servicing the loan. That’s key because buyers of seized assets usually have a very short window of time to exclude assets or renegotiate any exceptions.
That’s an important and unfortunately growing market: Twice as many banks have failed in 2010 compared with last year, due to problems with commercial real estate, according to a report from the Federal Deposit Insurance Corp.
In addition, many banks rely on this service for traditional bulk loan sales and acquisitions between financially stable institutions, because it provides a critical and invaluable ability to review the documents.
The mobile imaging unit sets up shop wherever the loan files are located, images the collateral files or servicing files, and transmits them back to NTC’s home office to be reviewed, inventoried and indexed to the client’s satisfaction. The images are then either hosted by NTC or quickly imported into the client’s imaging system. The aim is to provide the new servicer with an advance look at the loan files prior to the close of the loan sale.
Because all the information to prepare an assignment would be accessible in NTC’s system, it can easily prepare any required mortgage assignments and send them to recording jurisdictions nationwide. The assignment can be created because of the work the mobile unit performs. Without it, the new servicer would not know what is in the loan files until it’s too late to negotiate any exceptions.
Instead, it has all the documentation available to review the loans and handle the servicing requirements. The new servicer would also be notified in advance of any insufficient collateral, and with NTC’s help, proactively resolve these issues. Clients appreciate the convenience this service provides, they have begun to rely on it, and they understand that given the unusual circumstances surrounding transfers and strict timelines, for example, it is an important service, one they could not operate without.
Editors at Mortgage Technology will announce the winners of their awards in late October.
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