Innovative Servicing Technology: Smart Enough to Kepp People in Their Houses?

BABC 04-19: Technological innovations in the mortgage industry have had profound impacts on every step in the homeownership process. Much of the literature has focused on the front end of the process, particularly the impacts of automated underwriting systems. Literature on loan servicing has focused on the borrower option to default with little attention paid to degrees of default or loss mitigation efforts used by lenders. This research examines the innovations that have occurred in the last ten years in mortgage servicing and their impacts on foreclosure incidence and loss mitigation…