Written by Michelle Garcia Gilbert, Esq. and published in WILLed’s 2020 Spring Edition.
Default servicing changed dramatically since the
mortgage meltdown crisis which began approximately
in 2008. The surge in delinquencies led
to increased regulatory oversight, and increased
staffing and use of technology to comply with increased
regulations and with increased borrower
interaction. The chart below illustrates this surge.
For default servicing participants, servicers, law
firms, vendors, borrowers, borrowers’ law firms
and consumer groups, there is a new normal
work environment involving audits, questionnaires,
policies and procedures, standard operating
procedures (SOPs), training and so on.