LOAN MODIFICATIONS-At the Forefront

Many mortgage industry executives and industry analysts believe that the current mortgage crisis is so serious that only systemic changes can stop further losses from escalation. This has made loan modifications a more palatable solution for both groups. The following considerations should be included in the implementation of a loan-modification program: 1. investor requirements, 2. borrower segmentation, 3. resource assessment, 4. workflow analysis, and 5. compliance capabilities. In today's challenging environment, most servicers and lenders don't have the budget or the time to ramp up resources or invest in technology to improve workflow processes. When considering a provider for loan-modification document preparation and delivery solutions, these are some factors to evaluate: 1. rapid implementation capabilities, 2. comprehensive solutions, 3. compliance and content-management expertise, and 4. secure delivery capabilities. Loan modifications are not the panacea for the current wave of troubled mortgages; however, they can play a critical role in the overall solution.