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This good practice guide details HML’s experience of collecting mortgage shortfall debt, capitalising upon our four unique selling points (USPs) in order to maximise the value of mortgage portfolios for both lenders and debt purchasers.
The first is our market-leading analytics service, which ensures those borrowers with a high propensity to pay are contacted as a priority, enabling resources to be focused in the most appropriate places.
Our second USP is our tailored collections strategies, which focus on borrower engagement and the most appropriate outcomes. This, in turn, delivers maximum value for lenders.
Our third USP is handling reputational risk. Our subsidiary Specialist Mortgage Services (SMS) collects mortgage shortfall debt under its brand. The experienced consultants can judge each borrower’s situation (supported by analytics) to know when and how to collect debt. In addition, SMS can hold legal title for lenders and investors. This has many benefits, including removing the burden of needing to hold the relevant FCA permissions and, as a result, widening the potential purchase pool of mortgage portfolios.
Finally, our specialist mortgage shortfall debt recovery team has more than 100 years of combined experience and is a ring-fenced resource. This ensures borrowers are dealt with by appropriately experienced consultants with a robust skillset and who know how to engage and build empathy with borrowers who have this type of debt, ensuring true value can be achieved for lenders and portfolio purchasers.
There are many challenges to collecting mortgage shortfall debt, but HML’s four main USPs, experience and significant resources are combined within a single, effective solution that ensures lenders and debt purchasers can maximise the value of a portfolio.