Loss Mitigation Solutions

Channel Inc. has a variety of tools to help banks, asset managers and/or investors manage the loss mitigation process.   When a loan on a property exceeds the value of a property, Loss Mitigation is a process of determining the “best alternative” regarding the risk of loss the lender (or investor) is in danger of realizing and managing that best alternative path to final conclusion. The ultimate goal of any loss mitigation process is to negotiate new mortgage terms for the homeowner that will prevent foreclosure. These new mortgage terms are typically obtained through;

• loan modification,
• short sale negotiation,
• short refinance negotiation,
• deed in lieu of foreclosure,
• cash-for-keys negotiation,
• a partial claim loan, or
• other loan work-out.

Channel’s analytical tools allow a client to input loan and property details, along with market assumptions and show the return available from loan modification, short sale and foreclosure.  Whichever path creates the best return can then be managed within the Channel platform, as described below. 

Loan Modification Channel is where Loan Modification company or any entity managing the Home Affordable Modification Program (HAMP) can receive loan and asset information, complete their information gathering, use the Channel analytical engines and upload their recommendations for review and approval by the Asset Servicers or Managers who assigned the loan to them. 

Channel Inc. has created Home Affordable Foreclosure Alternatives (HAFA) compliant Short Sale workflow templates that clients can use to manage the HAFA process within their own organization. The HAFA process may result in a short sale or a deed-in-lieu of foreclosure to help avoid foreclosure. The HAFA Program, which took effect April 5, 2010, provides servicer, seller and junior lien holder incentives for these transactions and is designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure.  

Refinancing  a loan is done within Mortgage Channel. Property and Borrower information is input into standard loan forms and can be digitally uploaded to Lenders for approval.  Channel supports the refinance process all the way through Escrow and new loan funding. 

Managing a Cash for Keys (CFK) transaction is supported in the Channel system with Eviction related status’, a file cabinet to store all documents and correspondence and a conversation log to record dialogue with homeowners, tenants and eviction attorneys, as required.