Consolidated Credit developed the program as mortgage servicers scaled back on loss-mitigation efforts
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Consolidated Credit has introduced a new program that addresses mortgage servicers' efforts to connect with struggling borrowers.
The Home Borrower Advocacy Services and Education program, or Home BASE, was developed by the nonprofit as a response to the mortgage servicing industry’s scaling back of loss-mitigation efforts. Consolidated Credit said the reduction comes as most servicers refocus on business models that are more linked to core loan origination and servicing operations.
The Home BASE program uses outreach, counseling, and coaching to help borrowers who are facing financial difficulty. Under the program, borrowers work with counselors certified by the Department of Housing and Urban Development (HUD) on ways to overcome challenges so they can keep their homes.
"The challenge facing loan servicers is how to continue providing vital loss-mitigation services to troubled borrowers without diminishing already-slim margins,” said Maria Gaitan, director of housing counseling at Consolidated Credit. “We believe the answer lies in creating partnerships with third-party HUD-certified housing counseling services who can step in to play the role of borrower advocate. This is what Home BASE provides."
"We know how to contact and engage struggling borrowers," said Barry Rothman, housing counseling program manager at the nonprofit. "Our capabilities allowed us to achieve 'right-party' contact rates of 56% on behalf of servicer clients who engaged our organization to assist their compliance with US Treasury Department's SD-13-08 Post Modification Counseling program. We were able to achieve counseling take-up rates of 37% for our clients, as compared to an industry average of just 7% for the rest of the loan-servicing industry."
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The Home Borrower Advocacy Services and Education program, or Home BASE, was developed by the nonprofit as a response to the mortgage servicing industry’s scaling back of loss-mitigation efforts. Consolidated Credit said the reduction comes as most servicers refocus on business models that are more linked to core loan origination and servicing operations.
The Home BASE program uses outreach, counseling, and coaching to help borrowers who are facing financial difficulty. Under the program, borrowers work with counselors certified by the Department of Housing and Urban Development (HUD) on ways to overcome challenges so they can keep their homes.
"The challenge facing loan servicers is how to continue providing vital loss-mitigation services to troubled borrowers without diminishing already-slim margins,” said Maria Gaitan, director of housing counseling at Consolidated Credit. “We believe the answer lies in creating partnerships with third-party HUD-certified housing counseling services who can step in to play the role of borrower advocate. This is what Home BASE provides."
"We know how to contact and engage struggling borrowers," said Barry Rothman, housing counseling program manager at the nonprofit. "Our capabilities allowed us to achieve 'right-party' contact rates of 56% on behalf of servicer clients who engaged our organization to assist their compliance with US Treasury Department's SD-13-08 Post Modification Counseling program. We were able to achieve counseling take-up rates of 37% for our clients, as compared to an industry average of just 7% for the rest of the loan-servicing industry."
Related stories:
Mortgage servicers need laser focus on oversight – report
How can mortgage servicers drive customer satisfaction?
