Lender Processing Services Inc., a provider of integrated technology and services to the mortgage and real estate industries, announced its Mortgage Servicing Package (MSP) supports all requirements of the Second Lien Modification Program (2MP) administered by Fannie Mae. 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.
"Our teams have been working tirelessly to enhance MSP to fully support servicers as they complete HAMP modifications," said Dan Scheuble, co-chief operating officer, LPS. "By servicing second liens on MSP as well as first mortgages, servicers can take advantage of the full functionality needed to participate in the 2MP program. We are proud to work with servicers in their HAMP and 2MP efforts to lower payments on both first and second lien mortgages."
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 powerful 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," said Scheuble. "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."
For more information, visit www.lpsvcs.com.