A new service from NTC provides complete file management under one servicer, reduced danger of loss from buybacks, increased certainty on reps and warrants from buyers, and increased value of assets presented for sale.
NTC (Nationwide Title Clearing, Inc.), long established as the mortgage industry’s standard setter for research and document processing, is now offering a complete collateral file audit and remediation service that can be tailored to specific portfolios, investors, and objectives. Collateral files are audited by a team of professionals who cure any exceptions through NTC’s document research and retrieval methods to bring the files up to a transferable standard, after which final results are reported.
Once the full audit and inventory is completed, NTC begins the remedial process of retrieving crucial documents. Once the collateral file is restored, NTC can provide follow-on processes including assignment/allonge preparation, document recording, e-recording, and tracking. All files reviewed are in accordance with state and local guidelines.
NTC’s collateral file audit and remediation service includes:
File intake, inventory, imaging, and indexing.
- Complete collateral file creation (in which a combined servicing and collateral file are supplied.)
- An audit of the collateral fully customizable to the client’s specifications. Audits can be drafted to suit a specific product, inventory, or intended disposition.
- Curative and remedial actions on any exceptions, including:
- Remediation of all missing collateral documents (mortgages, deeds, assignments, title policies), and
- Deeper research and resolution, by request, of missing intervening assignments, identification and cure of complex assignment chain issues, recovery or replacement of title policies, lost note affidavit creation, lost affidavit creation and recordation.
- File management, including paid-in-full release services, assignment services, and optional default research/assignment services.
- A variety of property reports that can be customized to indicate lien position, broken assignment chains, current beneficiary, or current owner.
The principal benefits of this service, according to NTC, are complete file management under one servicer, from shipping, storage, remediation, assignments, property reports, exception management, and reporting; reduction of money wasted from buybacks and/or reintegration into servicing departments; increased certainty about representations and warranties from buyers; and increased value of the assets presented for sale.
NTC reports that interest in the collateral file audit and remediation service is high, as for most clients it represents an investment with an immediate payback.
“The value of a mortgage-based loan portfolio,” says NTC CEO John Hillman, “is directly impacted by the completeness and accuracy—or lack thereof—of the collateral files of the loans of which it is comprised. In some portfolios we have audited, we have found errors in 40% to 60% of the loans. Remediating the exceptions in these loans increases the value of the entire portfolio, and enables the owner of the portfolio to make more money with each sale.”
For more information visit www.nwtc.com
