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41 March 2025 F E A T U R E S T O R Y March 2025 » country, the decrease in the savings amounts, and increases in defaults on unsecured lending and auto loans, any uptick in unemployment could result in a higher default rate. Homeowners still have significant equity in homes, but prolonged defaults could eat away at that amount quickly. Q: How do you foresee changes in default servicing evolving over the next few years, especially with shifting economic conditions and regulatory developments? Hladik: A key evolution in default ser- vicing will involve the utilization of tech- nology and artificial intelligence (AI) to make processes more efficient and the borrower experience better. Bond: Over the next few years, default servicing is expected to evolve signifi- cantly due to shifting economic con- ditions and regulatory developments. Economic fluctuation, including inflation and potential recession risks, will require more proactive risk management and tai- lored solutions for borrowers. Regulatory updates, such as the CFPB's proposed amendments to Regulation X, will ne- cessitate process updates and enhanced communication practices. Additionally, technological advancements will drive automation and streamlined communica- tion, helping servicers manage risks more effectively and support borrowers better. By staying adaptable and proactive, ser- vicers can navigate the evolving landscape successfully. Q: What do you foresee for default rates this year? Hladik: As noted, there are factors present that could lead to higher default rates this year. Bond: The default rates should remain steady due to the many loss mitigation options and the anticipated rate cuts. Bor- rowers continue to have a large amount of equity in their homes giving them more options when facing financial difficulty. Q: How are emerging technol- ogies, like AI and block- chain, influencing the servicing and default management spaces, and what should the industry ex- pect in terms of innovation? Hladik: Innovation and creativity in the use of AI and technology will be important going forward as the industry continues to find ways to be more efficient, uphold compliance standards, and maintain peak quality control. Bond: Emerging technologies like AI and blockchain are transforming mort- gage servicing and default management by enhancing communication among borrowers, law firms, investors, and ven- dors. These technologies reduce servic- ing costs, improve efficiency, and ensure regulatory compliance. By automating routine tasks and providing secure, transparent records, AI and blockchain make the mortgage process more effi- cient, cost-effective, and reliable. FEATURE STORY THE BEST SOLUTION IS NOT ALWAYS THE SHINY NEW TOY While it can be debated as to how much default and foreclosure activity lies ahead, default servicers must carefully examine their tech systems to keep ahead of the curve. FEATURE STORY DRIVING GROWTH: LEVERAGING HOME EQUITY TO EXPAND LOAN OFFICER OPPORTUNITIES In a tight market, LOs seeking to diversify their offerings are turning to home equity products to expand their role and become a financial guide for life. COUNSEL'S CORNER FACING THE FORECLOSURE AND BANKRUPTCY CHALLENGES OF TODAY Robert S. Kahane, a foreclosure and bankruptcy attorney with more than 30 years under his belt, discusses current compliance issues related to loan servicing process enhancements. EXPERT INSIGHTS TONY JULIANELLE, CEO OF REAL ATLAS ESTATE discusses current market trends and the forces that will shape the landscape in the industry. ALSO IN THIS ISSUE: Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS AUGUST 2024 Magazine The Burden of Proof MortgagePoint profiles Bron, Inc., a company that has carved out a unique niche with a focus on crucial but often-overlooked tasks such as managing registrations, utilities, and HOA verifications. Subscribe to MortgagePoint and MortgagePoint Digital now! Visit themortgagepoint.com/mp-access to take advantage of our special offer! Experts you trust. People you know. News you want. MortgagePoint is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MortgagePoint Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MortgagePoint believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS JULY 2024 Magazine White House Main Street America TO FROM THE As the November elections near, what ripple effects will the next Administration have on the housing industry? MortgagePoint gathered a panel of experts to dig deeper into the impact of the Presidential Elections and potential changes in the White House. TO YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS OCTOBER 2024 Magazine The Industry Leaves Its Mark at Five Star Conference Exclusive coverage from this year's Five Star Conference, including profiles of the Lifetime Achievement honoree, the Women in Housing Leadership Award recipients, and more. THE 2024 FIVE STAR CONFERENCE & EXPO SEPTEMBER 24-26, 2024 DALLAS, TEXAS "A key evolution in default servicing will involve the utilization of technology and artificial intelligence (AI) to make processes more efficient and the borrower experience better." —Stephen M. Hladik, Chair of Legal League; Partner, Hladik, Onorato & Federman LLP