hlp news—may 2015
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News and updates from HLP. This month features information on HLP's role in improving the loan modification process.TRANSCRIPT
News and Information from HLP MAY 2015
The major factor in making quicker decisions
has been a dramatic improvement in the time
needed by servicers to collect documents
before making a decision on an application. Be-
tween 2012 and 2014, servicers have cut the
time needed to collect a complete package of
documents from counseling agencies by 30%,
dropping from approximately 50 days per case
in 2012 to an average of 35 days by 2014.
With the proper data in their hands, servicers
are making quicker decisions—and more
homeowners are benefiting. The number of
homeowners that received a loan modification
increased by 20% in 2014 compared to the
previous year. The increase means that rough-
ly half of all homeowners using Hope LoanPort
were approved for loan modifications in 2014
in cases where servicers reached a decision.
“We know that HLP is having a significant im-
pact on the approval process,” says Nick Figlo,
senior vice president for Solutions, Design and
Analytics.
“Hope LoanPort is the best communications
platform for moving data and documents into
a servicer’s shop, and the more efficiently we
can do that, the better chance homeowners
have to get a favorable decision and keep
their homes.”
Added Hope LoanPort Chief Executive Officer
Camillo Melchiorre: “Our data show that roughly
half of all homeowners are approved in cases
where a servicer reached a decision. That’s
good news for investors and servicers, but
especially for homeowners and the neighbor-
hoods in which they live.”
Hope LoanPort recently collected and analyzed
data on cases submitted to the portal from
2012-2014. The major findings include:
• Only 4 percent of applications submitted
through Hope LoanPort in 2014 were re-
jected by servicers due to lack of proper
documents. The leading reasons for rejec-
tion were that the documents submitted
were missing critical information or that key
documents, such as bank statements or
W-2 forms, were outdated.
“Approximately 96% of all applications that
reached the servicer had a chance for approval
because of the ease of use and ability of our
platform to help everyone access these doc-
…continued on page 3
Faster Decisions Using HLP Lead to 20% Rise in Loan Modifications Mortgage servicers using Hope LoanPort are reaching decisions faster, result-ing in more at-risk homeowners getting loan modifications and saving their homes from foreclosure, according to new data collected by Hope LoanPort.
50days
35days
30% reductionin days needed to
complete the documentpackage required fora servicer to reach
a decision
homeowners receivinga loan modification
2013
2014
49%
applications submittedare accepted by servicers
96%
Take Five is a regular feature that enables a leader in the housing sector to share valuable insight on important and emerging topics. Future “Take Five” Q&As will feature leaders from mortgage companies, counseling agencies and investors.
Nick Figlo is senior vice president of Solutions, Design and Analytics for Hope LoanPort and is
responsible for delivering technology-based solutions that expand HLP’s capabilities. Figlo has
more than 30 years of experience in the mortgage industry. Prior to joining Hope LoanPort in
2012, he was the Vice President of Homeownership Preservation for Radian Guaranty.
How does Hope LoanPort make the loan
modification process more efficient?
Our technology is intuitive and very user friendly. As coun-
selors have become more familiar with the portal, they’ve
been able to incorporate the efficiencies it provides them
into their own operations, enabling them to submit com-
plete applications more quickly for their clients. As a result,
the average amount of time it takes a servicer to collect all
of the proper documents has been reduced from 50 days
to 35 days over the past two years. And that benefits any
homeowner hoping to save their home.
Does that mean counselors are getting better are
submitting complete packages?
Yes. The average time to submit a case has dropped from
eight days to six. The system’s built-in logic makes it easy
to understand all of the data needed for each case. I also
believe counselors aren’t coming to Hope LoanPort to
submit a package until they have all of the documenta-
tion they need—and that’s a good sign. It shows that they
understand how the portal works and what the servicer
needs to make a decision as quickly as possible.
Is faulty documentation holding up
decisions by servicers?
When you look at the big picture, the answer is clearly
“no.” Only 4 percent of applications submitted through
Hope LoanPort last year were rejected, and the applica-
tions rejected usually were missing critical information or
the homeowner submitted old and outdated documents.
So the portal’s ability to process this volume shows that it’s
working for counselors, attorneys, servicers, and above all,
homeowners.
Does Hope LoanPort have an impact on
applications that are approved?
We certainly do. Servicers approved nearly half of all
decisionable applications submitted in 2014. This is
a 20 percent increase from the previous year, even
though approximately the same number of cases were
submitted. More complete packages make it easier for
servicers to study the documents and make good deci-
sions. Before HLP came along, collecting documents
was often difficult and disjointed, which clogged the
decision-making process.
What are Hope LoanPort’s greatest attributes?
Hope LoanPort is a technology platform that fosters
communications between all parties in the housing indus-
try. It’s one of the few places that can unite all organizations
trying to help families achieve and sustain homeownership.
By efficiently moving data and documents between coun-
selors, attorneys and servicers—while making sure the in-
formation is transparent—we can achieve that goal.
“Unifying the Efforts to Help Families Achieve and Sustain Homeownership” [email protected] | 410.942.6464 x1021 | 100 International Drive | 23rd Floor | Baltimore, Maryland 21202
Coming Next MonthHope LoanPort has never lost a document and stores more than
one million documents in its database. To find out how we protect
data, we’ll feature the security and technology capabilities of
our platform in the June issue.
uments,” Figlo said. “It’s a strong indication that the utilization of
Hope LoanPort facilitates collaboration and operational efficiency
in the stakeholders’ shops. The platform is guiding counselors,
attorneys and servicers to submit documents that are correct and
up to date.”
• The average number of days for a counselor to open a case
and submit it to a servicer has dropped dramatically. While
it took an average of 13 days to submit a case back in early
2012, the length of time dropped to eight days in 2013 and six
days last year.
“Document collection is becoming more efficient for several
reasons,” said Figlo, “First, the system guides them through
what to do and the right documents and information to submit.
Counselors have much more experience submitting cases
through HLP, so they know how to get the documents into the
system more quickly. At the same, continuous enhancements to
our platform are making it easier to use and increases everyone’s
efficiency. As a result, it’s taking less time for counselors and
servicers to ‘perfect’ the loan package.”
• The amount of time needed by
servicers to reach a decision on
a complete application has been
reduced from 35 days to 31 days
over the past year. In the last quar-
ter of 2014, servicer needed an
average of only 23 days to make
a decision once they had collected
all documents.
In summary, advanced logic within HLP’s system and better
documentation is helping everyone. Counselors need less time
to submit a case and servicers have more time to examine the
application. The result has been a higher approval rate for home-
owners.
“In the past, without a complete package of documents, the
number of people approved by servicers wasn’t as high,” said
Figlo. “Now, with proper documents submitted much quicker,
the timeline for a decision is also quicker. HLP is fostering better
communications among all parties, which ultimately is helping
more homeowners.”
Handling liquidation cases quickly and properly is a growing area of risk for servicers. Using HLP to
handle short sale and deed-in-lieu cases reduces the time needed to resolve these cases, saves money and reduces losses.
Get Your Company Scorecard on HLP Metrics Hope LoanPort collects data and develops metrics on the operational efficiency of each mortgage servicing company that uses our
platform. For example, companies can learn how much time it takes to assemble their loan modification packages and reach decisions
on those applications. To get your individual company scorecard and find out how to schedule training to improve your ability to use
Hope LoanPort, please contact Nick Figlo at [email protected].
#1 ReasonFor Document
Rejection
missing criticalinformation or
outdated information
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Faster Decisions