Altisource Releases 2020 Report on Default Servicing Industry – NMP
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Altisource Releases 2020 Report on Default Servicing Industry

Jan 24, 2020
Photo credit: Getty Images/stuartmiles99

Altisource Portfolio Solutions has published its 2020 edition of “The State of the Default Servicing Industry,” an annual industry survey of 200 mortgage default servicing professionals.
 
According to the new report, 90 percent of respondents currently service FHA loans, up from 87 percent one year ago, and 80 percent expected their FHA loan portfolio to increase over the next 12 to 24 months, with 85 percent predicting an increase to be more than 25 percent.
 
Twenty-two percent of respondents complained their biggest challenge when managing vendors is vendor performance, while 17 percent cited costs and another 17 percent cited strategic alignment. When evaluating a vendor to manage their default portfolio, 96 percent stated that property preservation and inspection is a leading consideration, while 95 percent pointed to end-to-end default disposition capabilities and 94 percent cited a strong marketing platform/marketing scale.
 
Furthermore, 94 percent said their company was likely to select a single-vendor approach to managing the default lifecycle. Online auctions were also popular with respondents: 89 percent said they were currently using those platforms as part of their long-term strategy for asset disposition and 72 percent would like to do more online auctions.
 
“The survey uncovered many industry insights, including vendor management challenges and the importance of online auctions as a disposition tool,” said Patrick G. McClain, vice president of enterprise sales for Altisource. “With historically low delinquency rates, we may see a higher rate of FHA defaults in markets experiencing economic turmoil with little housing liquidity, such as rural areas. In addition, servicers are using a single-vendor approach to manage multiple pieces of the default lifecycle to help mitigate losses and streamline efforts.”
 
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Jan 24, 2020
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