RC_LA_DA_301.2 Loss Mitigation Processes

The loss mitigation counselor’s role has become central to discussions about the industry’s impact on the stability of the housing market. Federal regulations, GSE and investor requirements, insurer/guarantor requirements, and state statutes shape and govern the loss mitigation process. However, loss mitigation involves more than applying rules and guidelines. It requires evaluating the borrower’s situation, selecting and obtaining approval for an appropriate loss mitigation option, maintaining and documenting communication, collecting relevant information and documentation, formalizing workout agreements, and following through on the resolution.

Loss Mitigation Processes examines the key steps in the loss mitigation process. The course begins with an overview of considerations involved in selecting and approving a loss mitigation option. It then addresses methods for communicating effectively with borrowers in default and explains why communication is critical to successful outcomes. The course continues with a review of the information and documentation required during the workout process. It also examines the formalization of retention options, including documentation and recording requirements. Finally, the course reviews follow-up procedures for disposition options such as short sales and deeds-in-lieu of foreclosure.

This is a single-family/residential course.

Topics:

• Selection and Approval
• Communication with Borrowers
• Acquisition of Relevant Information
• Formalization of Retention Workouts
• Follow-Up on Disposition Options

Seat time approximately 1 hour.

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