This program offers a way for you or your staff to quickly acclimate to the entire default servicing process. The myriad of commonly used terms and concepts are organized and presented in a succinct and digestible way so those just starting, or looking to expand their career, can start to recall industry information as well as explain basic ideas. As a result, attendees will leave with a greater ability to apply, analyze and evaluate more advanced information and training as it comes.

LEARNING LAB MODULES 1 - 4

Origination

​​During this lab we will define origination and cover concepts such as note, endorsement/allonge, mortgage/deed of trust, deed of trust (formal), and assignment of mortgage.

“Origination” is an industry term for the transaction between a lender and a borrower that results in the creation of a note and mortgage. This can occur when a borrower pays for a real estate purchase with borrowed funds. It can also occur when a borrower refinances an already existing note and mortgage or when a borrower takes out additional loans using real property as security for repayment.

Title

During this lab we will define what is a title and will cover core concepts about deeds of type (including warranty deed, special warranty deed, judicial deed, and quit claim), owner, lien holder, lien priority, and title insurance.

“Title” is about who owns real property.  However, it is about more than just that. It is about accurately identifying the property and who might have a potential or competing claim to ownership. Finally, title includes making sure that your expectations regarding identify, ownership and competing interests are satisfied. 

Servicing

During this lab we will define servicing and cover concepts such as securitization, Fannie Mae, Freddie Mac, FHA/HUD, VA, USDA, and Loan Servicer.

To understand “servicing,” it is important to know the basic players. After a loan is originated, it is often “securitized” by bundling it with other loans into a mortgage-backed security, which is owned by investors. Government sponsored entities (GSEs) play a major role in securitizing mortgage loans. In addition, certain governmental entities (HUD, VA and USDA) either insure or guarantee payment of many loans. The “loan servicer” administers the lender/borrower relationship on behalf of investors who own the loans. 

Default

​​During this lab we will define breach letters, reinstatement, and redemption.

Technically speaking, a “default” occurs any time the borrower fails to live up to any requirement of the note or mortgage.  This is a broad concept so we will look at more specifics during this lab.

LEARNING LAB MODULES 5-8

Loss Mitigation & Non-Foreclosure Options After Default

​​During this lab we will discuss loss mitigation and non-foreclosure options after default, as well as discuss core concepts around retention and non-retention options, consent foreclosure, and short sale. 

Loss mitigation is simply efforts by the borrower and the lender to work something out so that a foreclosure is not necessary. There are many standard approaches to loss mitigation, but they can all be broken down into two groups: “retention” options and “non-retention” options.  With a retention option, the borrower keeps the home.  With a non-retention option, the borrower gives up the home.

Bankruptcy

​During this lab we will define bankruptcy and discuss core concepts related to chapter 7, 11, 12, 13, and a stay.

Bankruptcy is a legal process under Federal law by which a debtor who cannot repay debts to a creditor can seek relief from paying some or all of the debts. There are various types of bankruptcy relief under applicable chapters of the Federal Bankruptcy Code, which we will further explore in detail during this lab.

Foreclosure: Types of Processes & How they Work

During this lab we will define the types of foreclosure, process and how they work. We will also review core concepts around each type of foreclosure.

The foreclosure process varies from state to state. Each state process is at least a little different from every other state. There are three basic types of foreclosure process: “judicial,” “non-judicial” and “hybrid.”

Alphabet Soup

During this lab we will make sense of the alphabet soup of acronyms that show up in our work, including but not limited to, CFPB, SCRA, FDCPA & Liability Basics

The mortgage industry is heavily regulated. However, there are certain concepts that everyone must at least be aware of. During this final lab we will discuss a few of these regulations and decode all of those letters.