The inaugural Default Servicing Survey of more than 200 default servicing professionals by real estate and mortgage tech firm Altisource, also found that 41% believe that FHA loans will offer the highest portfolio growth.
Asked about the challenges of running effective Claims Without Conveyance of Title (CWCOT) programs, 29% of respondents cited remitting fees and other financial obligations associated with FHA conveyance; 15% cited overall vendor management; 15% timeline delays and costs resulting from attorney oversight; and 11% not having enough staff to manage the program.
“As the housing market continues its recovery and demand continues to outstrip supply, vendors’ CWCOT programs have a key role to play in helping servicers move housing inventory quickly back to the market,” said Min Alexander, senior vice president, Real Estate Services, Altisource.
“However, distressed properties require servicers to effectively manage multiple processes, with CWCOT as one part of a multilayered disposition strategy,” added Alexander.
That complexity has led 97% of servicing professionals to consider a single-vendor approach with 72% ranking consistency and efficiency in managing REO properties as a very important consideration.
More market update:
Almost three quarters of mortgage servicing professionals expect an increase in FHA/VA volumes in their organizations in the coming 12-24 months.