Wingspan Portfolio Advisors, a Dallas area-based specialty and component mortgage servicer, announced recently that it has increased its capacity for helping servicers stay compliant with the requirements of the Interagency Review issued on April 13th by the Federal Reserve, the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS). Initially affecting the top twelve servicers, the company said it was expected to lead to sweeping change in the ways servicers operate, as well as the ways in which they document their activities.
After an interagency review of these servicers, regulators handed down two key enforcement actions in the Consent Orders for each servicer examined. One enforcement action was for each servicer to contract with an independent consultant to review residential foreclosure actions or proceedings that have been pending at any time from January 1, 2009 to December 31, 2010, as well as residential foreclosures sales that occurred during this time period. The second enforcement action mandated each servicer to hire an expert to perform a comprehensive assessment of risks in servicing operations, specifically in regard to foreclosure, loss mitigation, and property disposition. The servicers in question were given 45 days from the execution of their Consent Orders to select independent providers for the required reviews.
In its press release, Wingspan indicated it was ready to take on that new business. Company management thinks the regulators' actions could bring it business from smaller servicers, as well.
"The bar for oversight has been raised, and though the servicers named in the document need to react immediately, the clock is ticking for all servicers,” said Wingspan Portfolio Advisors CEO Steven Horne. "Wingspan has been providing these audits and reviews to servicers for a long time, and we’re now beefing up our capacity to accommodate what I expect to be an ongoing need for these professional services."
The company said it has added nearly 100 employees in the last 60 days at its Dallas-area headquarters in anticipation of these actions by regulators.