For investors in the mortgage industry, understanding and controlling risk is critical to their operations.  However, investors rarely service their own mortgage loans and must rely on the quality and success of third party loan servicers.  ELM Services plays an unbiased, objective role in supporting the investors in their goals of managing and understanding the performance and abilities of their servicers.  ELMS offers a wide range of customized services tailored to fit the specific needs of the investor.  Primarily these services fall into two categories:

Servicer Review

This review (one time or periodic) involves working with the client to understand their needs and then developing a review plan that provides the transparency into specific servicer characteristics and activities.  The menu of services offered can include:

  • Procedure manual review
  • Process review
  • Comparison of process / procedure to actual practice
  • Internal audit / internal control assessment
  • Industry best practices, regulatory and agency compliance review
  • Cash management control environment assessment
  • Individual loan review
  • Call monitoring
  • Data integrity analysis
  • Management team and staff evaluation
  • Technology assessment
  • Reporting capability assessment
  • Information security and business continuity plan assessment

Servicer Operational Review and Oversight

This on-going servicer oversight provides clients with continuous assistance in servicer monitoring and management.  In addition to the servicer review functions listed above, ELMS may also provide any of the following additional surveillance functions:

  •  Monitoring of compliance against PSA guidelines and deal triggers
  • Putback review and analysis
  • Analytical portfolio performance review
  • Collection and loss mitigation effort analysis
  • Exception analysis and loan level review (collection comments, pay histories, etc.)
  • Approval of loss mitigation efforts
  • Timeline compliance monitoring (i.e. Foreclosure, Bankruptcy, REO, etc.)
  • Validating decision to foreclose
  • Approval of foreclosure bids
  • Approval of other loss mitigation decision such as modifications, short sales, and deeds-in-lieu.
  • Review and approval of charge off recommendations
  • Approval of REO marketing plans and offers