To better service a loan portfolio topping 79,000 accounts, City Mortgage Services recently signed on with ScoreNet, an electronic provider of consistently updated Credit Bureau information that will assist CMS in the statistical and analytical component of servicing second mortgage loans.
According to CMS Vice President Larry Crimmins, CMS services over 35 transactions backed by high loan-to-value mortgages, and 125% home-equity loans and Title I trust loans.
"In the asset-backeds, you run into the default question," Crimmins explained. "And we're always looking for ways to minimize defaults, and this is one of them."
Typically, when a loan first closes, servicers will log that borrower's credit scores into its borrower grading system; however, that information is static. A customer that has good credit at the time of closing may run up debt over the next few years, Crimmins explained.
"The beauty of ScoreNet is that we're getting more up to date information on the customer."
Traditional servicing tactics include telephoning customers after they are five days delinquent. However, with ScoreNet providing credit information, CMS is able to approach a potentially delinquent customer beforehand.