Are you a collection agency, outsource vendor, master servicer, primary servicer, subservicer, special servicer, note purchaser, note seller? Are you currently violating State Laws that subject you to Penalties, Fines, Cease and Desist Orders by State Agencies?
Take the Test:
[1] Are you engaged in ANY activities involving residential mortgage loans? Be honest. You are not getting graded on this test.
[2] If the answer is YES, then doANYof the activities involve ANY activities described in this definition of servicing: (q) "Servicing" shall mean the collection or remittance for or the right or obligation to collect or remit for any lender, noteowner, noteholder, or for a licensee's own account, of payments, interests, principal, and trust items such as hazard insurance and taxes on a residential mortgage loan in accordance with the terms of the residential mortgage loan; and includes loan payment follow up, delinquency loan follow up, loan analysis, escrow account management and any notifications to the borrower that are necessary to enable the borrower to keep the loan current and in good standing, engaging in default management/loss mitigation, including loan modifications, repayment plans, short sales, deed-in-lieu, foreclosure in the event of a default". I said ANY so even if you are just making the follow up calls after default, or preparing and sending the 15 day servicing notice or attempting to collect a 2nd mortgage after foreclosure you would be classified as a Servicer in most States.
[3] If the answer if YES, then you need a mortgage servicer license in 40 of the 50 states and possibly also need a collection agency license in 22 of the 50 states. Just because you have a collection agency license in a State does not relieve you of requirement to obtain a mortgage servicer license that State in order to be compliant. Do you have a mortgage servicer license and/or a collection agency license in EVERY State tthat your are engage in activities related to servicing of residential mortgage notes?
[4] If the answer is YES, then you have passed the TEST. If the answer is NO, then you have failed the TEST and need to call me - Herb Thomas - today at 214-692-7611 so I can assess your exposure and develop a strategic plan for Compliance. Do not jeopardize the successful company that you have built. Call today!
For additional information on this subject, read below.
Mortgage Servicing Companies Cannot Engage in Servicing without Mortgage Servicing Licenses
As the Subprime Meltdown takes it effect and over 263 Mortgage Companies have imploded, critical liquidity is entering the industry through hedge funds purchasing distressed mortgage pools containing both performing loans and nonperforming "scratch and dent" loans. These passive investment pools are required by law to obtain from 11 to 15 mortgage lender licenses [where lender is defined broadly to include "acquire"] to be legal and eliminate regulatory liablilty to its investors. These "scratch and dent"morgage pools are being purchased at major discount allowing room for foreclosure prevention through loss mitigation [both repayment plans and loan modifications] and resale of the reperforming loans at significant profit. Some are also employing refinance as a way to rehabilitate loans and increase their resale value. This additional capability will require mortgage lender licenses.
Companes are also building their own mortgage servicing platforms rather than trying to purchase existing servicing platforms. Pure servicing companies require 34 mortgage servicer licenses and 16 collecion agency licenses to avoid regulatory shut downs. Mortgage servicers with refinance capabilities require an additional 35 mortgage lender licenses for a total of 85 licenses in order to be fully regulatory compliant. We are the leading mortgage licensing company assisting mortgage servicers obtain the necessary licenses in the shortest amount of time by using an automated online mortgage licensing engine. We are currently engaged in 13 national mortgage servicer licensing projects each of which are pursuing between 50 and 80 licenses
READ MORE ABOUT SERVICING HERE