Members of the Mortgage Insurance Companies of America have developed a new loan workout template that helps address problems between a servicer and mortgage insurer when settling a borrower’s loan modification.
The new template is designed to obtain workout activity on a monthly basis for all delinquent loans and loans that are in workout status. Features of the template include standardized field names, definitions, and formats covering borrower, servicer, investor, property, delinquency, other workout-related data and disposition of workout efforts.
This product is beneficial for servicers because they no longer have to develop programming to generate customized workout reporting for each mortgage insurance company it conducts business with.
“Offering a standardized workout reporting template for all mortgage insurance companies will better assist servicers with reporting required monthly workout data in a timely and consistent manner,” said the Washington, D.C.-based trade association that represents the private mortgage insurance industry.
MICA members help loan originators and investors make funds available to homebuyers for low downpayment mortgages by protecting these institutions from a major portion of the financial risk of default.
The trade association said this template was created to replace the existing MICA HAMP reporting template and any other customized workout reports currently provided to individual mortgage insurance companies.
All mortgage insurance companies, including non-MICA affiliated companies, have adopted this new reporting template.
MICA recommends that each servicer should continue submitting all existing workout reporting they may be currently providing, along with the new working reporting template, until each MI company approves the servicer to discontinue submitting existing reporting. Additionally, each servicer should coordinate transmission and delivery of the new reporting template with each MI company.
Servicers are not required to use this new template until the January 2012 monthly reporting cycle.