As more notes change hands, collateral files risk slowing down the process
(Palm Harbor, FL) June 13, 2018 – The market for non-performing and re-performing loans (NPL/RPL) continues to heat up, and this is causing problems for some capital markets participants according to executives at Nationwide Title Clearing (NTC), the leading post-closing services provider for the nation’s largest financial institutions, investors and servicers. Because they typically must work with due diligence firms, document custodians and file remediation experts, it is taking too long for some buyers to combine analytics on the collateral to know the real value of the portfolio in time to make a quick resale back into the market.
“It’s a sellers market right now as these portfolios are changing hands very rapidly,” said Debbie Lastoria, Vice President of National Sales at NTC. “But if a firm that has just purchased a portfolio can’t quickly and accurately assess the value of the loans, they are likely to undersell. After completing a successful project, our client told us that we increased their purchase price by $50 million from the data compiled vs. the data confirmed.”
NTC takes great pride in offering a comprehensive service with proven financial benefits that combines physical collateral file review, land recording validation as well as remediation and document custody, allowing the company to assess/determine mortgage position, assignment chain defects and collateral inventory. NTC then perfects the physical collateral files in a very short timeframe and also provides an inventory and images of all verified collateral docs. After upgrading to an additional stand-alone vault facility, NTC officially launched its innovative new document custody solution called Curative Vault Solutions last October, giving Life of Loan Services a new meaning. The solution is a complete custody process that goes well beyond storage and inventory to include collateral creation, collateral review to real-life industry standards, remediation exception reports, perfecting of the collateral file and more.
As part of its service, NTC obtains missing documents wherever they may be and assists with curing any assignment and endorsement exceptions. Then, the company prepares or facilitates acquiring any additional required documents to support loan sales and other life of loan events. NTC’s research and document teams have more experience than any other company in the space, making it possible and cost effective to validate land records against the collateral itself.
NTC’s Curative Vault Solution includes:
- Secure Storage Facility
- File Intake and Review
- Exception Curative Services
- Comprehensive Document and Exception Tracking
- Loan Transfer Assistance
- Imaging and Indexing
- Pre-purchase Collateral Due Diligence
- Coordination between Sellers, Buyers, Custodians and Due Diligence firms
“It can be up to 60 days before the note buyer even receives the exception report from the document custodian,” said John Hillman, CEO of NTC. “Then, the buyer must wait even longer for another firm, which charges an additional intake fee, to validate and fix the problems. We do all of that very quickly, and our document custody facilities are second to none. Our curative vault has changed the way these loans are traded on the secondary market, and that’s benefiting everyone in the value chain.”
For more information about NTC’s Curative Vault offering, contact the company today.
Nationwide Title Clearing, Inc. (NTC) was founded in 1991 and has grown into a national leading post-closing services provider for the residential mortgage industry. NTC provides a wide range of services to the nation’s top mortgage lenders, servicers and investors as well as various government entities.
NTC’s mission is to deliver Life of Loan services with the highest level of accuracy partnered with the mortgage banking industry to protect homeowners while also preserving the integrity of the nation's land records.
For more information, visit the company’s website at www.nwtc.com