Mortgage Servicing Companies Cannot Engage in Servicing without Mortgage Servicing Licenses

As the Subprime Meltdown takes it effect and over 263 Mortgage Companies have imploded, critical liquidity  is entering the industry through hedge funds purchasing distressed mortgage pools containing both performing loans and nonperforming "scratch and dent" loans.  These passive investment pools are required by law to obtain from 11 to 15 mortgage lender licenses [where lender is defined broadly to include "acquire"] to be legal and eliminate regulatory liablilty to its investors.  These "scratch and dent"morgage pools are being purchased at major discount allowing room for foreclosure prevention through loss mitigation [both repayment plans and loan modifications] and resale of the reperforming loans at significant profit.  Some are also employing refinance as a way to rehabilitate loans and increase their resale value.  This additional capability will require mortgage lender licenses. 

Companes are also building their own mortgage servicing platforms rather than trying to purchase existing servicing platforms.   Pure servicing companies require 34 mortgage servicer licenses and 16 collecion agency licenses to avoid regulatory shut downs.  Mortgage servicers with refinance capabilities require an additional 35 mortgage lender licenses for a total of 85 licenses in order to be fully regulatory compliant.  We are the leading mortgage licensing company assisting mortgage servicers obtain the necessary licenses in the shortest amount of time by using an automated online mortgage licensing engine. We are currently engaged in 13 national mortgage servicer licensing projects each of which are pursuing between 50 and 80 licenses 

Comments

[Ernest]

The above article was of grate interest to me. I would also know where can I get a list of the 263 Mortgage companies that imploded