Investor Reporting Concerns

Abstract

This panel discussed the challenges multiple parties have in collecting and using loan-level data reported by servicers, lack of guidance on how servicers should treat loan modifications, disagreements over servicers’ advance policies, incomplete loan level data, servicers’ frequent lack of the techniques or data required to build statistical models to support their stop-advance policies, how inaccurate reporting by servicers often requires changes to the entire pool and reloading of submitted data into a reconciliation system, problems created by negative interest and/or principal due to large realized losses, expenses, or other adjustments, investor-reporting issues resulting from increased liquidations and higher realized loss severities, and the need for future documents to consider the different types of modifications and their various impacts on investor payments and reporting.

TOPICS: MBS and residential mortgage loans, factor-based models