Tag: loss mitigation

5 articles tagged “loss mitigation”

When a Disaster Hits the Whole Portfolio on the Same Day: Running Natural-Disaster Forbearance With an AI Servicing Agent

A hurricane does not deliver its delinquencies one at a time. A FEMA major-disaster declaration can put thousands of loans into distress in the same week, and the servicer still has to offer each borrower the right relief, hold every Reg X protection, and keep the collateral and the escrow straight while the call volume triples. How we build a servicing agent for the event that breaks a queue-based operation by arriving all at once.

Oct 28, 20266 min read

Mortgage Fraud After Closing: Loss Mitigation Fraud, Equity Skimming, Short-Sale Flopping and Payoff Diversion

Fraud does not stop when the loan funds. Servicers see fabricated hardship packages, foreclosure rescue schemes that strip a distressed homeowner's equity, short sales to related buyers who resell days later, landlord insurance on loans closed as owner-occupied, and payoff funds redirected by a forged request. How each scheme shows up in the documents a servicer already receives, the rules around them, from Regulation X to the MARS rule, and where an AI agent fits without slowing down a borrower who needs help.

Oct 10, 20266 min read

When the Loan Is FHA or VA, the Waterfall Is the Investor's, Not the CFPB's: Government Default Servicing With AI After the 2025-2026 Overhaul

Most default-servicing AI is built to the CFPB Reg X rules and stops there. FHA and VA loans layer their own loss-mitigation waterfalls on top, and both changed hard in the last year: FHA sunset its COVID options and its HAMP on September 30, 2025 under Mortgagee Letter 2025-12, and VA replaced VASP with a new Partial Claim program that opened June 15, 2026. An agent that recommends a retired option on a government loan is not a small bug. Here is how we version the waterfall by investor and effective date, what the agent computes, and the determination a human still signs.

Sep 19, 20265 min read

The Call From Someone Not on the Loan: Successors in Interest Under Reg X and the AI Servicing Agent That Cannot Just Say No

A death, a divorce, an inheritance, and suddenly the person calling about a mortgage is not the borrower and never signed the note. Reg X turns that call into a regulated event: the servicer has to recognize a potential successor in interest, facilitate the confirmation, and once confirmed treat that person as a borrower. Where an AI servicing agent has to stop reciting the privacy script and start the successor process, and the line it cannot cross on liability.

Aug 28, 20266 min read

AI Agents for Mortgage Loss Mitigation: A Regulation X Playbook for Servicers

How servicers can deploy AI agents inside the CFPB's loss mitigation framework — covering Regulation X timing rules, the 2024 proposed amendments, language access, dual tracking, and the exam-ready audit pack.

May 15, 20268 min read

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