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» COVER STORY INDUSTRY INSIGHTS THE BIG PICTURE BEST PRACTICES POINT— COUNTERPOINT DS News digital. Available now. REGIONAL SPOTLIGHT attorney to file an application for fees to assist with the completion of a loan modification. A lot of times the servicer's bankruptcy counsel can help, because he or she has had contact with the debtor's attorney in the past, says Barkley Sutton, associate general counsel for RoundPoint Mortgage Servicing Co. He says RoundPoint also conducts outreach to debtor attorney organizations to publicize the loss mitigation programs it has available for borrowers in bankruptcy. Covey says servicers could also make it easier for loss mitigation plans to be processed by utilizing existing paperwork already required of borrowers in bankruptcy. "If servicers could just accept the bankruptcy schedules, instead of requiring new paperwork to be filed, it would streamline the loss mitigation process. And a lot of times it is even more detailed that what the servicers are seeking," she said. Also, servicers should keep in mind that borrowers and borrower attorneys are looking for easy ways to apply for loan modification agreements, Covey says. Debtors are "looking for easy paperwork to fill out; they're looking for people to talk to about their problems and about the loan modification process," she said. Bonial suggests also ensuring debtor's counsel can return the initial letter requesting direct communication with their client with little effort on their part beyond a signature of authorization. "Make it easy for them to fax or email you back something saying: 'Go ahead and contact the debtor directly,'" she said. It's something that proves the servicer is making every attempt to follow proper protocol, Bonial says. Besides never contacting a debtor directly without a waiver from the debtor's attorney, one of the biggest points to keep in mind when managing bankruptcy court relationships is to keep the Chapter 13 trustee informed of payment changes, according to Bonial. After entering into a loss mitigation plan, it's important for the servicer to amend the proof of claim and the debtor to amend the plan and recalculate the plan and payments with the arrears adjusted, RoundPoint's Sutton said. Brad Johnson, SVP of portfolio management for RoundPoint, says servicers should try to avoid pushing borrowers into bankruptcy—where it is much more difficult and expensive for the servicer to work with the debtor—by alleviating their fears. "A lot of [debtors] have filed in fear of losing their home," Johnson said. He contends servicers in general should do a better job advising borrowers on collection and loss mitigation matters and ensuring customers are properly educated on the many options available to them to save their homes from foreclosure. VISIT US ONLINE @ DSNEWS.COM Digital.DSNews.com From the latest industry news and trends to in-depth interviews with leading servicing executives and a growing catalog of previous DS News issues, DS News Digital is now free for a limited time as your ultimate on-the-go resource for everything impacting the mortgage default servicing industry. 55

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