VMC Reports Significant Decrease in Short Sale Closing Timeline
|August 17, 2010|
ServiceLink, Fidelity National Financial's National Lender Platform and a provider of origination, loss mitigation and default services, reported the company's short sale business model is resulting in dramatically reduced short sale approval and closing timelines.
The Pittsburgh-based company is reporting completed package and contract acceptance in less than 30 days from the moment it receives the file assignment from the servicer. Just a year ago, the industry was constrained by delays as long three months from the time an agent submitted a package to contract approval.
ServiceLink is also reporting that the timeline from contract approval to closing has been reduced to less than 45 days, providing for a total short sale completion time of less than 75 days. Previously, the entire short sale process could take over five months.
"The biggest difference we're making in the industry is our streamlined asset management approach," said Jane Johnson, SVP of Loss Mitigation at ServiceLink. "Our sites across the country are staffed with experienced short sale specialists, and that's allowed us to scale quickly and efficiently to offset our clients' capacity struggles."
ServiceLink began expanding its loss mitigation operations early this year in anticipation of an increased number of short sale transactions. With a combination of tenured, client-dedicated teams devoted solely to short sale transactions and a strong focus on quality control, the company has emerged as one of the leading outsource companies for loss mitigation services. ServiceLink remains one of the few providers that can manage end-to-end and component loss mitigation without the need for further outsourcing.
Johnson attributes ServiceLink's success to the firm's unique process. Unlike the traditional outsourcer model, ServiceLink employs dedicated closing teams that support the servicer from initiation through liquidation with an emphasis on the closing process. "It's a process newer entrants to the marketplace will struggle to develop," says Johnson.
ServiceLink's model also includes technology customized to a lender's individual workflow. And, since all work is performed in house, the firm can take a file at any stage. Amid the growing number of short sale transactions, ServiceLink Loss Mitigation Services, a division of Fidelity National Financial Servicing Inc., has seen its short sale inventory increase over 35 percent just in the last quarter and continues to win short sale opportunities with large servicers and investors.