Lender Processing Services Inc.'s (LPS) Mortgage Servicing Package (MSP) now supports all requirements of the Second Lien Modification Program (2MP) administered by Fannie Mae, the company reports.
Inherent in MSP is functionality to support the steps required to modify a second lien when the first is being modified under the Home Affordability Modification Program (HAMP), including capitalizing accrued interest and servicing advances, supporting escrow accounts, reducing interest rate, extending term, forbearing principal and setting up the trial period.
In 1999, LPS boarded its first home equity lines of credit onto MSP with full escrow functionality available for those loans. In addition to supporting escrow accounts, MSP has functionality to establish escrow cushions, automate escrow refunds, spread shortages and ensure annual compliance and disclosures. This functionality is available for traditional mortgages, as well as home equity products and other second liens.
‘We recognized that since home equity products were backed by collateralized assets, escrow accounts were critical, especially for those in the first lien position,’ says Dan Scheuble, LPS' co-chief operatin officer. ‘Back then, it was a key risk management strategy; now it is required, and we have proven over the last decade that MSP can fully support this escrow requirement.’
SOURCE: Lender Processing Services