LUXEMBOURG, Dec. 20, 2018 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") ASPS, a leading provider of real estate, mortgage and technology services, today released its 2018 report, "The State of the Servicer Industry." The report highlights results from the third annual Default Servicing Survey, a survey of over 200 mortgage default servicing professionals.
With the general decline in inventory over the past five years, servicers are expressing interest in working with larger service providers who offer end-to-end capabilities. According to the study, when evaluating a vendor to manage their default portfolio, a majority of servicing professionals surveyed consider end-to-end default disposition (93 percent) and REO asset management (93 percent) capabilities important.
Of the servicing professionals surveyed, 86 percent cited that their organization currently services FHA loans. Nearly three-quarters (72 percent) expect their FHA loan portfolio to increase over the next 12 to 24 months and 77 percent expect the increase to be more than 25 percent. While FHA loan delinquency rates remain low, servicers need to be prepared to handle these delinquencies. Servicing professionals (73 percent) cited using a third-party vendor as part of their CWCOT program management. When asked what factors are important when choosing a CWCOT vendor, 91 percent of those surveyed said end-to-end capabilities/outside services (i.e. closing, valuation, title curative).
"Based on the survey results, recent economic indicators suggest that the housing market is approaching an inflection point," said Patrick G. McClain, Senior Vice President of Hubzu Auction Services and Equator for Altisource. "While delinquency and foreclosure rates remain low, home price appreciation is slowing and interest rates are rising. With lower origination volumes and an expanding credit box, servicers expect to see growth and increased delinquencies in their FHA portfolios. Now is the time for servicers to review their internal capabilities and ensure they are partnered with the best vendors to effectively manage their FHA delinquent loans to avoid unnecessary cost, increased risk and to maximize returns."
Click here to download the full report, "The State of the Servicer Industry."
The Default Servicing Survey was completed online among 200 professionals in the U.S. mortgage default servicing industry. Fieldwork was conducted by independent global market analytics firm, Echo Research, between July 23 and 27, 2018. The margin of error associated with the sample of n=200 is +/- 6.9 percent at a 95 percent confidence level.
Altisource Portfolio Solutions S.A. ASPS is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. Additional information is available at altisource.com.
Source: Altisource Portfolio Solutions S.A.
Michelle D. Esterman
Chief Financial Officer
Britt E. Gottlieb
Senior Manager, Communications
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