Mortgage Operations 

Loan Origination:

Our professionals run broad and deep in experience with consumer loan origination operations from Point of Sale through Underwriting, Processing, Closing, Funding, and Post Closing functions. In addition, we assist our clients in determining how bulk purchase transactions should be structured, assisting with establishing proper accounting, reporting, and monitoring to support the after-sales portfolio.

 

Loan Servicing / Performing Loans:

Today’s consumer lending companies face tremendous pressure to enhance their servicing practices to work on behalf of the consumers’ best interests. This requires increased transparency and levels of customer service, adherence to new regulations, and thus changes to operational processes which are not inexpensive nor simple feats. The key is to do so, all the while in a well-controlled, transparent, compliant yet efficient and profitable operation for benefit of the organization and it’s investors alike. From new loan onboarding in bulk or flow, to custodial accounting and investor reporting, escrow management, customer service and ultimately Portfolio Retention / Recapture, KPMG’s Operations Team stands ready to deliver. We specialize in the similarities and differences between the businesses of prime servicing, special servicing, master servicing and sub-servicing.

 

Loan Servicing / Non-Performing Loans:

Many changes in the regulatory environment in particular have created significant challenges in the non-performing mortgage space. The regulatory mandate for a Single Point of Contact for loans in the loss mitigation and default management process is driving financial pressures in terms of operational deleveraging. Other mortgage-related standards and regulations include Regulation AB; the Uniform Single Audit Program (USAP); Mortgage Servicer Consent Orders from the Office of the Controller of the Currency (OCC) and the Federal Reserve Board; the Servicer Alignment Initiative (SAI); Fair Lending requirements; and mandates from the Consumer Financial Protection Bureau (CFPB) and from state and other prudential regulators. Mortgage institutions must be aware of these regulations and be prepared to comply with them. Among our experiences in loss mitigation, we have advised on structuring modification programs, monitoring loss mitigation outcomes, and monitoring portfolio trends. Our knowledge of the loss mitigation and default management process can help our clients create value in declining loan assets, mitigating the decline. Or, on the other hand, our understanding of loss mitigation and default management can help our clients assess when a loan should be moved into the real estate owned (REO) process.

 

Real Estate Owned:

Due to the sheer volume of REO owned by various banks and financial institutions, all parties have been forced to consider a wide array of strategies for disposing of the properties. KPMG recognizes that there are several options when it comes to removing an REO property from the servicers’ books. In most cases historically, it has been in the servicer’s best interests to dispose of the property as quickly as possible to minimize costs. KPMG also recognizes, however, that due to the large REO volume, the fragile state of the housing markets, investor concerns, and forthcoming potential shifts in regulation, clients may want to consider nontraditional disposition alternatives to mitigate losses as well, and we are well prepared to meet those needs.

 

KPMG’s Mortgage and Consumer Lending Operations services support business process improvement and re-design, compliance assistance with new regulations, merger and acquisition due diligence and assistance with bid price determination, management reporting enhancement and overall project and program management.

 

To learn more about our services and capabilities, please contact one of the following KPMG professionals:

 

For information about KPMG’s related Mortgage and Consumer Lending Services, please visit our Consumer Lending Services, Securitization Services, Securitization Tax Services, Credit & Data Analytics Services, Credit Technology Solutions Services, and general overview pages.

 

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      Contact

      Mark Twerdok

      U.S. Credit Risk Services Leader

      412-232-1599

      mtwerdok@kpmg.com

       

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