From the Source: VA Partial Claims – What Servicers Need to Know
With VA foreclosures up nearly 500% since last year and thousands of borrowers at risk, the mortgage industry is closely watching the rollout of the VA Partial Claim program. The full article from HousingWire includes expert insights from Sagent’s Chief Compliance Officer, Matt Tully, who shares his perspective on the timeline, implementation, and how servicers can leverage smarter tech to respond effectively.
“It’s definitely a risk,” said Matt Tully, Sagent’s chief compliance officer, when asked whether the program could arrive too late. “Obviously, you have to be thoughtful about how you set up a program, but the VA did have a partial claim in the past. It’s not like unfamiliar territory for them, or you couldn’t model it off FHA or even the USDA.”
Servicers and vendors need time after the rules are finalized to implement the program. Schmidt noted her system would need 60 days to adapt. Tully added that while technology isn’t a barrier, servicers will need to update policies, procedures and call center training — a process that also takes months.
According to Tully, the industry’s top concern is to avoid unnecessary red tape — to accomplish the task through informal guidance versus formal rulemaking.
“Part of what the industry has been asking for is, ‘Don’t be overly rigid around the setup,’” he added.
Sagent leadership is comprised of visionaries who get the details about constantly changing mortgage markets, regulations, and homeowner needs.
If you want to connect with our CCO Matt Tully (or any of our execs) to talk about Sagent and our Dara mortgage servicing platform, submit the form below and we’ll respond right away.
And please follow us on LinkedIn to keep up on our market and industry intel.