Transaction Support and Servicer Oversight
Digital Risk’s transaction support and oversight solutions help clients dramatically reduce loss severity, manage capacity and improve operational efficiencies. Having built a best-in-class loss mitigation platform staffed with a blend of servicing and mortgage origination professionals, Digital Risk’s loan modification support helps you achieve precise, accurate processing and quality, compliant loans.
Effective surveillance solutions uncover loan, pool or bond level performance and systemic issues. As necessary, data is aggregated from multiple servicers into a single, consolidated report to ensure adherence to industry standards, as well as the service agreement. Services include:
- Loan Modification Support
- Servicer Oversight
- Distressed Asset Due Diligence
Loan Modification Support
Digital Risk’s loan modification and underwriting solutions helps manage capacity and ensure compliance levels are met through meticulous review and validation of all legal and underwriting requirements. Client-centric teams trained on clients’ specific requirements accommodate any capacity required. Underwriters, processors and servicing default professionals specializing in loan modification fulfillment perform:
- Document validation, encompassing review of required employment level, income and asset documentation, etc.
- Income, asset and debt cash flow analysis
- Program requirement review, including assignment of decision grades and complete client system inputs
Servicer Oversight
As a highly-regarded and trusted independent servicer oversight provider, Digital Risk uses a synergistic combination of proprietary business rules driven technology, advanced analytics and experienced seasoned default servicing professionals to uncover loan, pool or bond level performance and systemic issues. We then aggregate data from multiple servicers into a single, consolidated report to ensure the servicer is adhering to industry standards, as well as their service agreement. Services include:
- Servicer and portfolio performance management, comparison and benchmarking
- Issue resolution
- Monitoring of open remediation action plans
- Loan administrative surveillance
- Escrow administration
- Suspense balance aging
- Tax penalties paid
- Loans with expired insurance: hazard, flood, earthquake, mortgage - Compliance
- Custodial accounting titling
- Annual financial and insurance coverage verification
- Open internal/external audit findings
- Coordination of servicing transfers
- Post-transfer servicing advance review
- Cash settlement verification - Coordination of servicing transfers
Our comprehensive review covers:
- Collection efforts (borrower contact)
- Loss mitigation
- Modification recidivism
- Cash management/lockbox
- Third-party vendors
- Foreclosure and bankruptcy
- Claim payment calculation
- REO
- Investor reporting and accounting
We also provide default servicer oversight to review and analyze default processes, including:
- Collections, validation and analysis of default reporting data
- Reconciliation and processing non-performing loan liquidations
- Analysis of loans with high losses and excessive liquidation timelines
- Servicer claims and remediation
Digital Risk also manages the claim and remediation process with the servicer. We prepare and send the servicer claim letters with the supporting evidence and related documentation. When necessary, we also respond to servicer claim rebuttals and negotiate and settle claims on your behalf.
Distressed Asset Due Diligence
Digital Risk’s pre-purchase reviews provide deep, loan-level intelligence to ensure all purchaser requirements are met by confirming credit and valuation compliance. Our client-dedicated analytical teams leverage customized technology and reporting to provide statistical and analytic models along with robust due diligence reporting to support and validate decisions regarding credit, performance, expected loss and potential profitability. All necessary elements are thoroughly reviewed including:
- Credit
- Quality control
- Asset analysis
- Compliance
- Fraud review
Loan decisions are derived via review of:
- Loan Registration: Inventory, bookmarking, lock validation, data capture
- Processing: Fraud tools, re-verification, third party data
- Compliance: Federal and state, TILA, REG Z, predatory lending
- Underwriting: Guideline review, income, assets, credit criteria
- Valuation: Current value reconciliation, project and product acceptability, underlying risk elements
