Earlier this year, two foreclosure processors exited the real estate market, signaling a possible change in the waters. In March 2013, Titanium Solutions announced the closing of the company and Prommis Holdings filed for Chapter 11 bankruptcy. Could this mean a change in the market dynamics? Will more companies be exiting in the future?

With defaults going down, the serving volumes are diminishing. Titanium Solutions and Prommis Holdings closing their doors may just be the beginning. Business has slowed for smaller players, such as default law firms, and they have been exiting the market and backing away.

A few reasons for this change include:

  • The result of properties choosing the option of short sale over foreclosures.
  • The increased difficulty to become an accepted law firm or approved vendor in today’s market.
  • New requirements, which make the default solution provider third-party relationship difficult to oversee and manage.
  • New constricting screening process and regulator reviews for provider’s reports.
  • Bringing work in-house or limiting vendor relationships due to increased requirements.

The result of foreclosure processors exiting the marketplace is a consolidation of the large companies. Since 2007 many companies entered the industry; now the “winners” are emerging.

The higher level of quality control, including increased screening process, additional requirements, and tighter reviews, make it difficult for the smaller foreclosure processors. As the environment turns to stricter compliance and relies on larger companies with more resources, it more important than ever to have the right people working for you.

Accurate reporting and thorough data collection is a necessity for mortgage professionals today. Blue Streak Docs provides real estate attorneys and mortgage professionals a comprehensive research staff to provide document retrieval for all of their compliance needs. The experience of Blue Streak Docs gives companies the confidence to handle others business needs, while we fully take on data collection of property reports, deed-in-lieu, modification agreements, and other pertinent documents. For more information about our services and how we can help you, give us a call today at 727-479-0007.

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