News and Information from HLP MAY 2015

The major factor in making quicker decisions

has been a dramatic improvement in the time

needed by servicers to collect documents

before making a decision on an application. Be-

tween 2012 and 2014, servicers have cut the

time needed to collect a complete package of

documents from counseling agencies by 30%,

dropping from approximately 50 days per case

in 2012 to an average of 35 days by 2014.

With the proper data in their hands, servicers

are making quicker decisions—and more

homeowners are benefiting. The number of

homeowners that received a loan modification

increased by 20% in 2014 compared to the

previous year. The increase means that rough-

ly half of all homeowners using Hope LoanPort

were approved for loan modifications in 2014

in cases where servicers reached a decision.

“We know that HLP is having a significant im-

pact on the approval process,” says Nick Figlo,

senior vice president for Solutions, Design and

Analytics.

“Hope LoanPort is the best communications

platform for moving data and documents into

a servicer’s shop, and the more efficiently we

can do that, the better chance homeowners

have to get a favorable decision and keep

their homes.”

Added Hope LoanPort Chief Executive Officer

Camillo Melchiorre: “Our data show that roughly

half of all homeowners are approved in cases

where a servicer reached a decision. That’s

good news for investors and servicers, but

especially for homeowners and the neighbor-

hoods in which they live.”

Hope LoanPort recently collected and analyzed

data on cases submitted to the portal from

2012-2014. The major findings include:

• Only 4 percent of applications submitted

through Hope LoanPort in 2014 were re-

jected by servicers due to lack of proper

documents. The leading reasons for rejec-

tion were that the documents submitted

were missing critical information or that key

documents, such as bank statements or

W-2 forms, were outdated.

“Approximately 96% of all applications that

reached the servicer had a chance for approval

because of the ease of use and ability of our

platform to help everyone access these doc-

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Faster Decisions Using HLP Lead to 20% Rise in Loan Modifications Mortgage servicers using Hope LoanPort are reaching decisions faster, result-ing in more at-risk homeowners getting loan modifications and saving their homes from foreclosure, according to new data collected by Hope LoanPort.

50days

35days

30% reductionin days needed to

complete the documentpackage required fora servicer to reach

a decision

homeowners receivinga loan modification

2013

2014

49%

applications submittedare accepted by servicers

96%

Take Five is a regular feature that enables a leader in the housing sector to share valuable insight on important and emerging topics. Future “Take Five” Q&As will feature leaders from mortgage companies, counseling agencies and investors.

Nick Figlo is senior vice president of Solutions, Design and Analytics for Hope LoanPort and is

responsible for delivering technology-based solutions that expand HLP’s capabilities. Figlo has

more than 30 years of experience in the mortgage industry. Prior to joining Hope LoanPort in

2012, he was the Vice President of Homeownership Preservation for Radian Guaranty.

How does Hope LoanPort make the loan

modification process more efficient?

Our technology is intuitive and very user friendly. As coun-

selors have become more familiar with the portal, they’ve

been able to incorporate the efficiencies it provides them

into their own operations, enabling them to submit com-

plete applications more quickly for their clients. As a result,

the average amount of time it takes a servicer to collect all

of the proper documents has been reduced from 50 days

to 35 days over the past two years. And that benefits any

homeowner hoping to save their home.

Does that mean counselors are getting better are

submitting complete packages?

Yes. The average time to submit a case has dropped from

eight days to six. The system’s built-in logic makes it easy

to understand all of the data needed for each case. I also

believe counselors aren’t coming to Hope LoanPort to

submit a package until they have all of the documenta-

tion they need—and that’s a good sign. It shows that they

understand how the portal works and what the servicer

needs to make a decision as quickly as possible.

Is faulty documentation holding up

decisions by servicers?

When you look at the big picture, the answer is clearly

“no.” Only 4 percent of applications submitted through

Hope LoanPort last year were rejected, and the applica-

tions rejected usually were missing critical information or

the homeowner submitted old and outdated documents.

So the portal’s ability to process this volume shows that it’s

working for counselors, attorneys, servicers, and above all,

homeowners.

Does Hope LoanPort have an impact on

applications that are approved?

We certainly do. Servicers approved nearly half of all

decisionable applications submitted in 2014. This is

a 20 percent increase from the previous year, even

though approximately the same number of cases were

submitted. More complete packages make it easier for

servicers to study the documents and make good deci-

sions. Before HLP came along, collecting documents

was often difficult and disjointed, which clogged the

decision-making process.

What are Hope LoanPort’s greatest attributes?

Hope LoanPort is a technology platform that fosters

communications between all parties in the housing indus-

try. It’s one of the few places that can unite all organizations

trying to help families achieve and sustain homeownership.

By efficiently moving data and documents between coun-

selors, attorneys and servicers—while making sure the in-

formation is transparent—we can achieve that goal.

“Unifying the Efforts to Help Families Achieve and Sustain Homeownership” Mark.Cole@HLP.org | 410.942.6464 x1021 | 100 International Drive | 23rd Floor | Baltimore, Maryland 21202

Coming Next MonthHope LoanPort has never lost a document and stores more than

one million documents in its database. To find out how we protect

data, we’ll feature the security and technology capabilities of

our platform in the June issue.

uments,” Figlo said. “It’s a strong indication that the utilization of

Hope LoanPort facilitates collaboration and operational efficiency

in the stakeholders’ shops. The platform is guiding counselors,

attorneys and servicers to submit documents that are correct and

up to date.”

• The average number of days for a counselor to open a case

and submit it to a servicer has dropped dramatically. While

it took an average of 13 days to submit a case back in early

2012, the length of time dropped to eight days in 2013 and six

days last year.

“Document collection is becoming more efficient for several

reasons,” said Figlo, “First, the system guides them through

what to do and the right documents and information to submit.

Counselors have much more experience submitting cases

through HLP, so they know how to get the documents into the

system more quickly. At the same, continuous enhancements to

our platform are making it easier to use and increases everyone’s

efficiency. As a result, it’s taking less time for counselors and

servicers to ‘perfect’ the loan package.”

• The amount of time needed by

servicers to reach a decision on

a complete application has been

reduced from 35 days to 31 days

over the past year. In the last quar-

ter of 2014, servicer needed an

average of only 23 days to make

a decision once they had collected

all documents.

In summary, advanced logic within HLP’s system and better

documentation is helping everyone. Counselors need less time

to submit a case and servicers have more time to examine the

application. The result has been a higher approval rate for home-

owners.

“In the past, without a complete package of documents, the

number of people approved by servicers wasn’t as high,” said

Figlo. “Now, with proper documents submitted much quicker,

the timeline for a decision is also quicker. HLP is fostering better

communications among all parties, which ultimately is helping

more homeowners.”

Handling liquidation cases quickly and properly is a growing area of risk for servicers. Using HLP to

handle short sale and deed-in-lieu cases reduces the time needed to resolve these cases, saves money and reduces losses.

Get Your Company Scorecard on HLP Metrics Hope LoanPort collects data and develops metrics on the operational efficiency of each mortgage servicing company that uses our

platform. For example, companies can learn how much time it takes to assemble their loan modification packages and reach decisions

on those applications. To get your individual company scorecard and find out how to schedule training to improve your ability to use

Hope LoanPort, please contact Nick Figlo at NFiglo@hopeloanportal.org.

#1 ReasonFor Document

Rejection

missing criticalinformation or

outdated information

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Faster Decisions