WFG News

Industry Prepares for Increased Foreclosure and Loss Mitigation Activity

By April 1, 2021 No Comments
Industry Prepares for Increased Foreclosure and Loss Mitigation Activity

In March, DSNews wanted to hear what key industry leaders anticipated after the current forbearance scenario begins to phase out.

Dean Kirchen, SVP of WFG National Title Insurance Company’s Default Title Services division, tells writer David Wharton in an exclusive DSNews commentary, “For the past year, we’ve been listening to servicers who have been exhausting all efforts to keep their borrowers in their homes.”

However, he continues, while forbearance legislation and moratoriums have all but stopped foreclosure proceedings during the pandemic and will continue through at least the end of June, once these initiatives are lifted, it’s likely that loss mitigation and foreclosure activity will increase in Q4 2021 and beyond.

In February, writes Wharton, “in anticipation of an increased need for its services, WFG’s Default Title Services division introduced forbearance, loan modification, and foreclosure information reports on a nationwide basis. These expanded offerings complement the organization’s existing roster of national title and closing services offered by WFG’s Enterprise Solutions group.”

According to Kirchen, foreclosure attorneys, trustees, and mortgage servicing and default management professionals have shared with him that, in this segment where every transaction feels totally unique, they depend on knowledge and experience, and having access to a team of underwriters experienced in the nuances of foreclosures.

“This is especially critical when looking at title insurance after a foreclosure sale,” Kirchen said. “Given the CARES Act and state legislation related to moratoria on foreclosures, you really need to ‘get into the weeds’ on these files.”

He added that WFG’s Default Title Services group also provides system integrations with leading third-party attorney case management systems.

“This helps enhance operational efficiency for foreclosure attorneys, trustees, and mortgage servicing clients, and provides greater accuracy, reduces redundancy, and shortens timeframes,” Kirchen said.