Lender Processing Services (LPS: 26.54 -0.23%) said it completed the first electronically signed and submitted loan modification through the Home Affordable Modification Program.LPS provides a suite of mortgage technology and real estate services, which includes the development of ClosingStream 2.0. The servicer, which was not identified by LPS, electronically created modification documents to a borrower through the Web-based tool.
The borrower then reviewed, signed and returned the documents to the servicer in four hours. According to LPS, the manual process can take as long as two weeks, an estimation far below the experience at some servicing shops and the Treasury’s own report.
According to the latest monthly HAMP report, nearly half of homeowners in active three-month trial modifications have been there for six months. The most common cause of cancellations is insufficient documentation.
Fannie Mae, which administers HAMP, recently extended the modification timeline to give servicers and borrowers more time to turn in the documentation. Once the borrower is declined a modification or some other alternative, however, servicers will be fined for delaying foreclosures.
“Not only does ClosingStream 2.0 enable an efficient, secure process for borrowers to review and sign their loan modification agreements, it also reduces the time and effort that is required since paper is eliminated from the process,” said Al Verkuylen, senior vice president of LPS’ title, closing and verification solutions department.
According to LPS, ClosingStream 2.0 complies with theTreasury’s requirements for HAMP Electronic Signature Solutions, or eHAMP. It has been used over the last several years to complete refinancing and modifications through proprietary programs.
LPS also released an updated version of its desktop tax management application to help servicers electronically load and match nonescrowed tax search results, track delinquency letter cycles and pay delinquent taxes.
Write to Jon Prior.
