White Paper Details Benefits Of Automating New FHA, VA Loss Mit Requirements

DLS Servicing and WaterfallCalc published a free white paper detailing how one of the nation’s largest mortgage servicers leveraged automated technology to successfully adopt the FHA Payment Supplement Agreement (PSA) and the VA Veterans Assistance and Support Program (VASP). The white paper, “Automating VASP and FHA PSA Compliance,” also examines how early adoption of these programs can help lenders reduce default rates and improve borrower satisfaction rates.

Announced earlier this year, both government programs are intended to assist FHA and VA borrowers who are still struggling to make their mortgage payments following the COVID-19 pandemic. The PSA program is designed to help FHA borrowers reduce their mortgage payment by 25% without a loan modification, while the VASP program allows the VA to directly buy back VA-guaranteed loans and modify the loan terms to a fixed 2.5% interest rate.

The white paper provides an in-depth look at the multiple challenges lenders and servicers face under the new requirements. It also details how WaterfallCalc, an intuitive loss mitigation application that empowers servicers to quickly evaluate any default scenario in a compliant manner, empowered Ocala, Florida-based Essex Mortgage to implement both programs in just one month. Based in Ocala, Florida, Essex Mortgage is a full-service mortgage lender, servicer and subservicer that specializes in FHA and VA loans.

“By swiftly implementing innovative programs like the FHA PSA and VA VASP, we are better equipped to assist borrowers facing financial hardships, ultimately helping them retain their homes and achieve financial stability,” said Nathan Sands, chief servicing officer of Essex Mortgage. “WaterfallCalc’s ability to pivot quickly, without the constraints of a large, inflexible operation, allows us to stay ahead of industry shifts and continue delivering the high level of service our borrowers deserve.”

Key highlights from the white paper include:

• A detailed overview of the FHA PSA and VA VASP programs and how they can help struggling borrowers.
• Insight into the compliance and operational hurdles these programs pose to mortgage servicers.
• A detailed account of how Essex Mortgage leveraged WaterfallCalc’s loss mitigation calculator tool to implement both programs.

“Our latest white paper is required reading for mortgage servicers looking to stay compliant with new loss mitigation requirements and help more borrowers keep their homes,” said WaterfallCalc founder Donna Schmidt. “We’re proud to support Essex Mortgage and many others in their efforts to enhance the level of service they offer American homeowners.”