Interested in setting up Servicing with SN Servicing Corporation?
SN Servicing Corporation’s default management strategies take into consideration that each case may present itself with varying financial situations and /or individual circumstances. Resolution Strategies are therefore tailored to each individual account in the best interest of the borrower and the investor, in compliance with federal or state regulatory requirements. Asset Managers service each loan from the time it is loaded into our system through disposition, regardless of the loan performance status. Our servicing platform is highly customizable, supporting your need to match resolution strategies to your investment objectives in an expeditious manner.
Why SNSC Succeeds:
|SNSC's team of borrower-friendly experts specializes in managing the full servicing life cycle from loan acquisition to asset liquidation, creating a strong sense of trust, thus higher collection rates. Using a personalized approach, we work closely and individually with our customers to understand their needs and provide the right solution while creating the most value for clients.|
|SN Servicing Corporation employs various campaign options in an attempt to assist borrowers with seriously delinquent loans. These include letter campaigns, door knocks, gift cards, discounted settlements, cash for keys, short sales, and various other incentives.|
|SN Servicing Corporation specializes in seriously delinquent loans (more than 90 days past due), including HUD/FHA
loans. We have serviced over 16,000 seriously delinquent loans with a value of $1.4B,
with a current overall re-performing ratio of 36% and an average of 58% for residential loans over the
past 4 years.
To achieve re-performance, SNSC uses a variety of loss mitigation options to negotiate an agreement with the borrower to resolve past-due payments and prevent foreclosure. Foreclosure is only considered as a last resort and is not initiated until all loss mitigation options are exhausted. A third of SNSC’s residential loans with a loss mitigation workout were paid in full in 2017.
|SNSC believes that the best method for curing a default is through early
intervention. Starting as early as Day 1 for some loans, Asset Managers make frequent and early
attempts to contact borrowers:
A breakdown of SNSC’s residential mortgage servicing portfolio by year:
|Year||Re-performing Loans||Ratio||Volume ($MM USD)|
|2015||5,617 out of 10,309||54%||$378.4|
|2016||6,007 out of 10,463||57%||$413.4|
|2017||9,694 out of 15,709||62%||$798.5|
|2018||7,920 out of 14,677||54%||$1,993.0|
|2019||14,361 out of 23,321||62%||$1,777.3|
SN Servicing Corporation’s Default Administration is conducted
from the Service Center in Eureka, CA.
Administrative functions include:
- Customer Service
- Loss Mitigation
- BPO Support
Each loan is assigned to an Asset Manager at service transfer. The Company has instituted a best practices-based special servicing application that helps Asset Managers apply consistent collection strategies to accounts through all stages of the delinquency cycle.
- Establish a personal relationship with the borrower, which improves communication, increases accountability and enhances SNSC’s ability to guide the performance or exit strategy of a loan
- Allow for a seamless transition through the delinquency cycle with minimal interruption into asset workout and resolution process
- Asset Manager’s average loan count varies depending upon loan characteristics (i.e. lien position, performance status, collateral type), investor requirements and Asset Manager’s experience
- Client-specific team approach is available
An Asset Manager’s goal is to maintain the performing status of the loans or attain a re-performing status on delinquent loans to achieve the best possible outcome
- “Hello/Welcome Calls” are made 5-days post Service Transfer date for the purpose of introducing themselves to the borrower, verifying account information, advising of the monthly billing statement and providing the lockbox address for the borrower’s convenience
- Asset Managers’ key responsibilities are:
- Borrower’s current monthly budget and financial outlook
- Proactive identification of short sales, modifications and Deed-in-Lieu opportunities in early stages of delinquency
- Aggressive and systematic Skip Tracing to support delinquency management via Web Based Services, internet options and data mining
- Late Notices/Proactive Letters/Calling Campaigns
- Concurrent collections ensures aggressive timeline management should asset disposition be required
- Re-performance is actively pursued for each loan up until foreclosure sale
SNSC’s Application Management System (AMS) is a custom solution that not only affords integrated access to multiple enterprise applications, but also provides its own sophisticated solutions. AMS gives users real-time, integrated access to SN’s main applications like Finastra Servicing Director, SAP, Documentum, and the SNSC Data Warehouse. At the same time, it provides its own custom solutions such as Loan Boarding, Foreclosure Management, REO Management, Loss Mitigation and Payment Plan.
- Fully integrated loan level decision tool that performs critical calculations related to Foreclosure, Short Sale/Discounted Payoff, Deed-in-Lieu, Hybrid solutions as well as client-specific modifications
- The Asset Manager can instantly view changes to the resolution priorities as borrower’s financials or collateral conditions change
- SNSC’s model is highly customizable to address each investor's portfolio strategies
- The Asset Manager’s experience and knowledge of the borrower and collateral will ultimately dictate the best and most likely solution
- All workout recommendations are subject to the approval of a Supervisor or the Department Manager
|Deed-in-Lieu of Foreclosure/REO|
|Foreclosure/Third Party Sale|
The Company has a comprehensive modification program in place for borrowers whose ability to pay is contingent upon reasonable term changes. Fully integrated DTI calculations, Net Present Value results and amortization schedules are utilized by the Asset Manager to determine the appropriate workout in the best interest of the borrower and investor, in compliance with federal or state regulatory requirements.
- Modifications can be tailored to meet investor-specific requirements
- Solicitation letters will be sent to the borrowers that meet elegibility criteria as defined by the investor
- Underwriting reviews are performed to validate the borrower's financial information and situation
- Exterior and Interior BPOs are used to validate property market values at investor’s request
- Fully integrated DTI calculations and amortization schedules
- Borrowers are proactively managed throughout the trial plan and/or modification
The Foreclosure Team coordinates foreclosure proceedings and monitors compliance with outside counsel
- The Asset Manager continues to be responsible for the overall management of the asset while the Foreclosure Team handles the legal process
- SNSC’s Foreclosure Management Module is an integrated workflow solution that tracks and manages the foreclosure process at every critical milestone
- All Foreclosure Proceedings are subject to evaluation and approval by the Foreclosure Committee and Investor approval
- SNSC works with a time-tested proprietary list of approved attorneys for each state
- Each attorney is evaluated and ranked in our custom Vendor Management scorecard module
The Bankruptcy Team receives or retrieves information relevant to the filings and monitors the bankruptcy proceedings from filing to dismissal/discharge
- The loan is transferred to a BK Asset Manager for the duration of the Bankruptcy
- Proofs of Claim are completed and filed
- Payments are monitored per the bankruptcy plan
- The borrowers intent to retain the property is confirmed
- A Stay of Order is initiated if borrower defaults
- Each attorney is evaluated and ranked in our custom Vendor Management scorecard module
REO Managers are responsible for managing the marketing and closing of REO Properties. The REO team strives to reduce days on market and improve net proceeds through the following:
- Pricing Strategy - Property values are regularly assessed to ensure an accurate pricing strategy and marketing presence.
- Single-Point-of-Contact - The REO team maintains direct communication with the broker, including assistance with premarketing (For example, Eviction/Trash-out/Maintenance/Winterization/Cash for Keys)
- The Company maintains a database of approximately 3,500 approved real estate Brokers located throughout the United States. These Brokers provide Broker Price Opinions (BPO), Competitive Market Analysis (CMA), and Property Condition Reports.
- Valuations are reviewed to ensure assets reflect market value. Brokers are consistently evaluated based on accuracy and timeliness of their work. SNSC scores each broker based on these criteria to ensure the most qualified and responsive brokers are utilized in each respective geographic area.
- SNSC has engaged a property preservation company that will provide property preservation, winterization and occupancy status
Each month, Investors will be sent an Invoice along with a multi-tab spreadsheet that includes the following tabs of information for supporting details:
- Investor Summaries
- Loan Summaries
- Transaction Details
- Corporate Advance Details
- Ancillary Fee Details
- Servicing Fee Details
- Month-end Loan Snapshot
- Unapplied Transaction Details
- Escrow Transaction Details
SN Servicing Corporation also provides a robust Investor Reporting web site that provides 24x7x365 real time access to portfolio and loan details. There are 5 main sections:
- Charts – Shows I high level graphical summary of the Investor’s portfolio
- Reports – Provides 40 expansive portfolio reports for all aspects of the loans, containing thousands of data points
- Shared Files – Utility that allows safe transmission of private information between the Investor and Servicer
- Requests – Secure request ticketing system that keeps track of the status of any request made to SN. Allows the secure transfer of supporting documents and integrates within the Account Officer’s daily “To Do List”
- Loan – Provides real-time detailed loan information, comments, transaction details, contact information, imaged documents, internal “To Do List”, Unofficial Payoff Quote and Detailed Workflow timelines for Foreclosures and Loss Mitigation efforts