PackagePrep.com

How It Works

How It Works

Ever wonder what happens to your loan workout package after submission?

1.

Loan Workout Package

Submitting your loan workout request may require an extensive amount of paperwork. With PackagePrep.com, you can rest assured that your package is complete and meets the industry standards.

 
   
 

2.

Verification Process

Each servicer receives many packages daily. Incomplete and inaccurate packages will fail the quality control checkpoints. In most cases, the servicer will discard the package and often will not notify you for weeks if at all. Thus, it is imperative that your package pass this QC checkpoint. PackagePrep.com will help you ensure that you're submitting a complete, and high-quality, package.

 
   
   
 

3.

Loan Specialist

Complete packages are assigned to a specialist who will ‘work’ the file to completion. For many servicers, decisions will be made without any contact from the servicer and with absolutely no direct contact between the specialist and the borrower, thus highlighting just how important it is that you provide a complete financial picture in your initial package.

 
   
     
 

4.

The Investor

The investors provide instruction to the servicers on qualifying their borrowers for loan workouts, thus their requirements must also be satisfied. For short sales, this can extend to second mortgages and mortgage insurers who must also approve the workout. This information is simply to highlight for you the potential for multiple parties to be reviewing your package at some point during the process. It is the centerpiece that drives the process.

 

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What happens to my package once I submit to my servicer?

While each servicer is unique, they generally follow the same high-level process flow. Each receives many packages daily (for the largest lenders, this numbers in the thousands per day). Staffs are overwhelmed by these volumes and thus delays can occur funneling these packages into the appropriate decision makers. Incomplete and inaccurate packages will fail the quality control checkpoints. In most cases, the servicer will discard the package and often will not notify you for weeks if at all. Thus, it is imperative that your package pass this QC checkpoint.

Complete packages are assigned to a specialist who will ‘work’ the file to completion. Often times the specialist works only on files for the workout type you have requested. At any given time the specialist can have 200 or more files on his/her desk. Throughout this timeframe the specialist may contact you with questions or requests for additional information. Be sure to respond quickly and completely to all requests and follow-up diligently. For many servicers however, decisions will be made without any contact from the servicer and with absolutely no direct contact between the specialist and the borrower. Obviously, this highlights just how important it is that you provide a complete financial picture in your initial package.

Finally, it is worth noting that the servicer’s role in the process is actually as the direction of the investor that owns the mortgage. This can be a GSE such as Fannie Mae or Freddie Mac, and bank or other financial institution, hedge fund or pension fund, or trust. These investors provide instruction to the servicers on qualifying their borrowers for loan workouts, thus their requirements must also be satisfied. For short sales, this can extend to second mortgages and mortgage insurers who must also approve the workout. This information is simply to highlight for you the potential for multiple parties to be reviewing your package at some point during the process. It is the centerpiece that drives the process.

Lender compliant packages:

The data we collect has been vetted with all of the major servicers and their package requirements. During development and testing of the system, many of the top 20 lenders provided valuable input and validation to the data we collect and the output format we provide. In this way we can ensure that every servicer will accept the package as complete and comprehensive. Our lender-compliant package output has been accepted by: Bank of America, Chase, Wells Fargo, Citimortgage, and many others.

Success probability

The single most prevalent reason why loan workouts fail is: an incomplete package was submitted by the borrower. All servicers agree, this is the biggest challenge the industry faces in processing loan workout applications successfully, and is also a huge contributor to subsequent mistakes servicers make in their processing. No successful loan workouts have reached that point without a complete package. While it is unknown exactly how many packages servicers receive each day nationwide, the number is most certainly in the tens of thousands. No one can say with absolute certainty what your probability of success is, however an incomplete package is successful 0% of the time.

Additional Resources: Homeowners Getting Blame for Lack of Loan Mods, but Evidence Points to Banks and Servicers, Too

Multi-state compliance

Regardless of your state or servicer, our loan workout application is compliant for processing.