Mary Salzer

  

I do not think they are inaccurate, just that the biggies may be using some automated modeling formula, to us in underwriting the modeling formula is an AUS...Automated Underwriting System...they are a failure and being proven so rapidly as we watch this whole thing unwind. So far as I have experienced the Lenders that I am dealing with do not have the thing automated on this side yet....as far as the modification process.

Now as far as to the losses, you betcha they have formulas....they are and have been set in stone for ages and ages...just how much loss they can tolerate and swallow, but so far not from the willingness, capacity and ability side for pure modification and loss mitigation. Not that I have come across yet.

I am going to start asking though....never hurts, and to date the guys and gals that I deal with all tell me they are hand processing and underwriting the modification and forbearance side of this stuff. Oh believe me they are pulling credit for purposes of third party verification of data...like employment, consumer debt, other mortgage debt, status of debt, residency issues, and a variety of other issues. They are or should be pulling core logic, MERS/MIN and a whole bunch of tools to assist in the data integrity process, valuation, other property ownership, we have a bunch of them at our disposal, Interthinx, DISSCO, Sysdome.....again that is often gut driven by what the credit report reflects and if it matches what the borrower provided.....who knows they did not do it going into this mess, why would I expect them to be anymore diligent at this end of the process.