—Proprietary Technology and Outsourced Teams Produce Faster,More Accurate Reviews for ARM Portfolio Service, Sale or Transfer—
December 24, 2008, SANTA ANA, Calif.
First American Outsourcing and Technology Solutions, a member of the The First American Corporation (NYSE:FAF) family of companies and a leader in business outsourcing solutions, announced today the development of its new auditing solution designed to reduce the cost and risk of servicing, acquiring and selling adjustable-rate mortgage (ARM) portfolios.
The solution identifies data issues with existing ARM portfolios and can “scrub” loan-pool acquisitions during the transfer and boarding process or as pre-sale due diligence. Unlike competitive auditing programs that only identify data issues, the new service can correct errors uncovered by the audit and re-post the changes to the servicer’s system. Specifically, the solution can re-amortize and repair loan files and customer histories and automatically generate corrected borrower loan statements. This enables millions of dollars in potential servicer savings by avoiding costly fees and penalties.
First American’s highly automated, scalable solution identifies exceptions and provides comprehensive loan work-ups for clients. The solution combines propriety ARM audit and quality control technology with flexible staffing models to provide tailored solutions for organizations of any size. Audits can be conducted 24 hours a day, six days a week and maintain a 99.97 percent data accuracy rate.
The ARM Audit and Repair offering includes:
· Triple-key data auditing
· Historic re-amortization of ARMs
· Forensic loan history analysis
· Due diligence and pre-acquisition or pre-sale scrubbing
“Industry-wide as much as $350 billion of unsecuritized ARMs are still held in portfolios,” said Scott Brinkley, executive vice president of First American Outsourcing and Technology Solutions. “Whether they are traded or retained by the servicer, there are significant data issues that can result in incorrect rate adjustments, defaults, foreclosures and lawsuits. Our proven approach reduces compliance and loan performance risk for portfolios in both the pre- and post-acquisition stage. By detecting errors at the front end of the sales process, they can be corrected prior to transfer and boarding, reducing cost and risk for the acquirer. Because our solution leverages technology and outsourced resources, we are able to significantly reduce costs and project timeframes compared to traditional, on-site auditors.”
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $8.2 billion in 2007, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. More information about the company and an archive of its press releases can be found at www.firstam.com.