Don’t you think this is pre-planned? Let’s face the facts – the so-called “original” collateral file ends up with the attorneys, who close their doors and conveniently dump all their documents…
Mark Twain once said, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
Well, for legal and compliance officers representing mortgage servicers who often cite concentration risk as a justification for maintaining an expansive network of legal service providers, it “just ain’t so.”
Ironically, it is this focus on concentration risk that leads to slower case resolution and increased servicing costs overall.
Risk is inherent in all litigation. There are direct financial risks such as legal fees, court costs and other expenses incurred due to attorney action or inaction (e.g., sanctions, opposing party legal fees, refiling fees associated with lack of prosecution dismissals), along with indirect risks such as extended resolution timelines and reputational harm.
Mortgage servicers too often ignore the real risk of law firm failure. This risk, now a recurring reality in the default servicing world…
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