October 21, 2008
Maybe Some Progress in Negotiating with Home Mortgage Lenders
I went to an mcle program given by the Central District Consumer Bankruptcy Attorneys Assn ("cdcbaa") on Saturday. A gentleman by the name of Joe Smith spoke about a new web portal that his company has recently set up. It is called Default Mitigation Management ("DMM"). The website is https://www.dclmwp.com The portal is for the use of attorneys only. The attorney inputs information regarding his client's mortgage including the loan servicer, account number and financial information. The information is sent by the portal to the loan servicer. DMM has an agreement with several major loan servicing companies so far. The servicing company has promised to respond to the attorney by email within 7 days with comments on whether or not the lender is willing to make any changes in the loan to permit the debtor to keep his home. The comments will come directly from some person who is authorized to negotiate on behalf of the lender. The Central District of California and a district in Tennassee are the test districts for now.
I have signed up for a password and I have a couple of clients whose information I am going to input to see what happens. I will report on what happens when it happens.
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Default Mitigation Management LLC (DMM) has developed a web portal with input from a group of trustees, servicers and debtor's counsels (especially Erik Clark, LA - California). The possibility of such a portal was suggested to DMM who began in late July developing the portal. The initial prototype was demonstarted, beginning in mid August, to many of the top loan servicers and refinements were made through September.
The first pilot began on 10/10/2008 in Tennessee and was coordinated with George Stevenson (Memphis Trustee) and Hank Hildebrand (Nashville trustee). The second pilot began this last Saturday (10/18) in the Central Region of California at the cdcbaa meeting.
The system is designed for the debtor's counsel to submit the borrower information and financials directly to the servicer, along with authorization to have communication as directed by the counsel. There is no cost to the debtor's counsel for use of the system.
The servicers are to respond withing 7 days to the request. We have several servicers already in the Pilot and the largest servicers are in the process of getting into the pilot. We welcome those in the pilot regions to get started. Even those where the servicer is not listed yet are directed to the servicer through contacts that DMM has made with the understanding they will respond to the request.
This is a new day of working out BK loans instead of the servicers avoiding them for fear of violating the stay. It makes sense to work out these loans, many of which are filing solely because of the mortgage. The new FHA Mortgagee Letter just came out this morning approving loss mitigation in bankruptcy. It is time to turn the tide on a very large portion of the mortgage market. The site is https://www.dclmwp.com
Posted by: Joe Smith | Oct 22, 2008 12:25:55 PM