MGC is a full loan servicing firm that provides a comprehensive host of support services, forward and reverse loan servicing, loss mitigation and default management, and REO asset management functions for first and subordinate loans. MGC’s servicing group is experienced in conventional and government loan servicing and has a proven record of expertise in government specialty products. MGC also performs servicing administrative tasks and operational procedures such as document tracking, accounting functions, escrow management and analysis, and year-end statements. Servicing and asset management functions performed by MGC:

PROCESSING PAYMENTS
The accurate handling of all payments is of highest importance to MGC. It is imperative that when funds are received they are posted promptly to the correct accounts for the correct amount.

ESCROW MANAGEMENT – TAXES AND INSURANCE
MGC tracks and pays delinquent property taxes, verifies the existence of property hazard insurance and withholds and disburses funds from borrower escrow accounts. An annual escrow analysis, compliant with RESPA, is performed on loans requiring an escrow set-aside and a report is generated at the completion of the calendar year itemizing all expenditures from and contributions to the escrow account. In addition, this analysis makes an accurate as possible estimate of the amounts that will be paid during the succeeding year for the tax and insurance items.

PAYOFF QUOTES
Payoff quotes are issued within 24 hours of request receipt.

TITLE REVIEWS
Title and assignment documents are reviewed to insure that client will acquire a first lien position.

RELEASES
Once funds have been posted the satisfaction of mortgage/lien release is prepared and executed and the package is sent for recording.

CUSTOMER SERVICE
MGC prides itself in exceptional high-quality borrower support. MGC’s communication expertise covers client/borrower relationship building processes from initial contact to daily maintenance. Its bi-lingual staff listens, analyzes and solves problems effectively and at a high level of borrower satisfaction. Voice recognition prompts allow borrowers options to better categorize their contacts as well as allow callers the ability to make direct contact with specialists by entering extension numbers. Use of a balanced call queue evenly distributes all incoming calls for general inquiries. These things combined give MGC an edge in a competitive business environment.

ANNUAL 1098 AND 1099 PROCESSING
MGC generates and sends 1099A/1099C/1098 statements to the borrowers or their estates along with a properly formatted corresponding data tape to the IRS.

COLLECTIONS
MGC directly contacts and negotiates with borrowers on delinquent accounts adhering to all relevant state and federal statutes including the Fair Debt Collections Practices Act. Delinquent balances are controlled by mailing past-due notices and making frequent collection calls. Delinquent accounts are collected by locating and contacting the borrower to negotiate repayment terms and by offering suggestions to the borrowers as to how they can meet obligations by proposing alternative payment methods.

LOSS MITIGATION
A vital part of MGC’s collection efforts is loss mitigation negotiations and communication with delinquent borrowers to help them reach an agreement such as repayment plans, forbearance plans, family sales, loan modifications, short sales, interest rate reductions, compromised offers, cash for deeds, cash for keys, deed-in-lieu transactions, or partial claims.

BANKRUPTCY
MGC monitors bankruptcy filings to ensure that proofs of claim and bar dates are not missed and to ensure that a violation of stay does not occur. MGC staff reviews bankruptcy schedules, prepares and files proof of claims, reviews and accepts/rejects plans, requests reaffirmation agreements, notifies local counsel when to move for relief, contests cram down attempts, defends adversary proceedings, monitors for dismissals or discharges, and accepts or disallows post petition payments as applicable.              Back to Top

FORECLOSURE
MGC begins the foreclosure processes in house by sending out the demand letters and the Notice of Intent to defaulted borrowers. Prior to engaging a law firm a written agreement is obtained from that firm agreeing to perform the work within the set fee guidelines. The foreclosure processes are tightly managed with consistent and persistent communications with local counsel ensuring that time lines are met.

MGC diligently pursues collection of any and all surplus funds to augment any losses that typically effect subordinate lien holders from the foreclosure of the first lien. MGC also reviews the sale reports to make certain that all available funds are properly disbursed whenever possible depending on the customs of the area.

PROPERTY INSPECTIONS
In a period of personal financial difficulty, there is always the danger that a borrower will abandon the property. Since abandoned property is often subject to vandalism, MGC has a responsibility to be alert to such abandonment to preserve the security for the mortgage loan. If payment has not been received within 45 days of the due date and efforts to contact the borrower have failed, MGC will utilize a third party vendor to make an inspection before the 60th day of the delinquency to determine if the property is vacant.

EVICTION
MGC is aggressive in its management of the eviction process by first engaging in a cost-benefit analysis and then exercising all industry alternatives such as “Cash for Keys” and other incentive-based options to shorten processing time and reduce costs.

If the cash for keys negotiations are unsuccessful MGC will instruct the attorney to begin the eviction process. Once the attorney sets an eviction date and depending on the state requirements, MGC arranges for the movers, storage, lock smiths, trash out crews etc...

WRITE OFFS
During the execution of its servicing responsibilities MGC may identify mortgage loans that are uncollectable, loans where the borrowers may be disputing the loan balance at payoff or assumption and payoff remittances with shortages. When these instances surface, MGC may determine it prudent to recommend the loan balance be written off either in part or in its entirety after the appropriate research has been conducted.    Back to Top