DLS Servicing, WaterfallCalc explain how mortgage servicers can implement PSA and VASP programs quickly and easily
September 19, 2024 — Grand Rapids, Mich. — DLS Servicing and WaterfallCalc today published a free white paper detailing how one of the nation’s largest mortgage servicers leveraged automated technology to successfully adopt the FHA Payment Supplement Agreement (PSA) and the VA Veterans Assistance and Support Program (VASP). The white paper, “Automating VASP and FHA PSA Compliance,” also examines how early adoption of these programs can help lenders reduce default rates and improve borrower satisfaction rates.
Announced earlier this year, both government programs are intended to assist FHA and VA borrowers who are still struggling to make their mortgage payments following the COVID-19 pandemic. The PSA program is designed to help FHA borrowers reduce their mortgage payment by 25% without a loan modification, while the VASP program allows the VA to directly buy back VA-guaranteed loans and modify the loan terms to a fixed 2.5% interest rate.
The white paper provides an in-depth look at the multiple challenges lenders and servicers face under the new requirements. It also details how WaterfallCalc, an intuitive loss mitigation application that empowers servicers to quickly evaluate any default scenario in a compliant manner, empowered Ocala, Florida-based Essex Mortgage to implement both programs in just one month. Based in Ocala, Florida, Essex Mortgage is a full-service mortgage lender, servicer and subservicer that specializes in FHA and VA loans.
“By swiftly implementing innovative programs like the FHA PSA and VA VASP, we are better equipped to assist borrowers facing financial hardships, ultimately helping them retain their homes and achieve financial stability,” said Nathan Sands, chief servicing officer of Essex Mortgage. “WaterfallCalc’s ability to pivot quickly, without the constraints of a large, inflexible operation, allows us to stay ahead of industry shifts and continue delivering the high level of service our borrowers deserve.”
Key highlights from the white paper include:
- A detailed overview of the FHA PSA and VA VASP programs and how they can help struggling borrowers.
- Insight into the compliance and operational hurdles these programs pose to mortgage servicers.
- A detailed account of how Essex Mortgage leveraged WaterfallCalc’s loss mitigation calculator tool to implement both programs.
“Our latest white paper is required reading for mortgage servicers looking to stay compliant with new loss mitigation requirements and help more borrowers keep their homes,” said WaterfallCalc founder Donna Schmidt. “We’re proud to support Essex Mortgage and many others in their efforts to enhance the level of service they offer American homeowners.”
“Automating VASP and FHA PSA Compliance” is available for download at bit.ly/3zn24Ng.
About Essex Mortgage
Essex Mortgage was founded in 1986 as a privately held mortgage lender in Orange County, California. The company is one of the fastest growing mortgage companies in the U.S. and offers a range of conventional, FHA, VA and high-balance mortgage loans to fit most borrower’s needs. Essex Mortgage is a 2024 USA Today Top Workplace award recipient and is headquartered in Ocala, Florida. For more information, visit www.EssexMortgage.com.
About DLS Servicing
DLS Servicing helps residential mortgage servicers quickly and properly reduce default rates and increase productivity by providing expert servicing compliance advice, training and proprietary technology. The company’s loss mitigation support services and quality control analyses ensure its clients are able to easily maneuver through mortgage regulations and stay compliant with agency and government requirements. DLS Servicing is a certified Minority Business Enterprise (MBE) based in Grand Rapids, Michigan. For more information, visit www.dls-servicing.com.
About WaterfallCalc
WaterfallCalc is a leading provider of loss mitigation analysis technology for small and mid-sized mortgage servicers. The company’s affordable, easy-to-use solutions enable servicers to streamline their default processes and stay compliant by quickly and accurately calculating the best loss mitigation options for distressed borrowers. WaterfallCalc’s cloud-based technology, WaterfallCalc+, enables servicers to help borrowers who apply for assistance directly from their mobile device, tablet or PC while tracking the loss mitigation process. The company’s solutions can be integrated with a servicer’s systems as well as Fannie Mae’s Servicing Management Default Underwriter. WaterfallCalc is based in Grand Rapids, Michigan. For more information, visit www.WaterfallCalc.com.