A new Lender Processing Services offering helps servicers match first and subordinate liens on a property to streamline the process of modifying mortgages for distressed borrowers.
The lien matching service facilitates data sharing and communication between the servicer handling the first mortgage and different servicers managing subordinate liens, which Jacksonville, Fla.-based LPS’s Applied Analytics division said supports co-modification efforts for subordinate liens following a first-lien modification.
Servicers who elect to participate in the service can benefit from having access to information on all the loans a borrower has taken out on a property through an LPS database of subordinate lien servicing. LPS uses the database to match modified first mortgages with their subordinate lien servicers.
LPS’s Mortgage Servicing Platform holds a majority market share among servicing system of record technology providers, which enables it to connect industry participants across the servicing universe. When a match is found, subordinate lien servicers are notified and provided with the necessary information to decide whether to offer a modification on the subordinate lien.