New LPS Offering Further Protects Military Personnel From Foreclosure – NMP Skip to main content

New LPS Offering Further Protects Military Personnel From Foreclosure

Dec 06, 2011

Lender Processing Services Inc. (LPS) has announced added functionality in its Military Service Personnel (MSP) loan servicing platform that will help servicers better track and manage loans belonging to military service members. LPS developed its Military Service Relief (MSR) functionality within MSP, which adds additional stop-gap measures to help servicers further identify and process protected loans with greater ease and confidence. The Servicemembers Civil Relief Act (SCRA) prohibits mortgage servicers from foreclosing or seizing property from active-duty military personnel unable to meet their mortgage obligations. The protection from foreclosure lasts up to nine months after active duty has ended, and service members also qualify for interest rate limits and other shields under the law. "Due to the current mortgage environment, LPS saw a widespread need to add additional holds and stop-gap measures to help servicers identify loans belonging to our nation's military personnel," said LPS Chief Information Officer Joseph Nackashi. "The expanded functionality can capture and store information about a borrower's active duty status, while other unique identifiers detect SCRA-eligibility to ensure fees are not assessed or collected in error and that payoff interest is calculated using the correct SCRA rate limits." The MSR functionality delivers 30 more loan-level fields in MSP, the technology used to service approximately half of the nation's mortgage loans by dollar volume. With these expanded capabilities, servicers can better manage loans for active-duty military personnel. Future MSR enhancements will deliver greater functionality related to default and credit bureau reporting, as well as reconciliation of advances.
About the author
Published
Dec 06, 2011
MISMO Launches AI Governance Framework For Mortgage Lenders

New FRAME toolkit gives lenders, servicers, and technology providers a roadmap for managing AI risk while supporting innovation

CFPB Tells Lenders Immigration Status Can Factor Into ATR Analysis

CFPB frames immigration status as a potential ability-to-repay factor when future U.S.-based income is at risk

UAD 3.6 Deadline Nears; First American Earns Verification

First American's ACI Sky Workbench gains verification ahead of the Nov. 2 implementation date for the GSEs' updated appraisal reporting requirements

MISMO Introduces New Loan Boarding Standard

Wrapper Files support standardized data transfers between origination and servicing systems, with potential savings of $60 to $160 per loan

The GLBA Compliance Gap Your AI Deployment Just Opened

Old statutes, new models, and the vendor contract you signed before machine learning became operational

FHA Keeps Tri-Merge Credit Reports While Expanding Approved Scoring Models

HUD says FHA lenders will continue using three-bureau credit reports even as the agency adopts newer scoring models aimed at increasing competition and modernizing mortgage underwriting