Mortgage Servicers Look to Software to Assist in Meeting State Foreclosure Rules

Posted on March 8, 2011


DecisionReady is a new software package designed to help mortgage servicing companies comply with state foreclosure laws.

Interesting idea, but it misses the mark.

First of all, the co-designer is the CEO of Kondaur Capital, a company whose business model is to buy distressed mortgages and to foreclose on them. So think of DecisionReady as a “make foreclosure easy” type of application.

Secondly, speaking as a foreclosure defense attorney and software tester of 15 years, the problem with wrongful foreclosures isn’t the checklist of items to be reviewed, it is the willingness of attorneys to allow notary fraud, and mortgage companies to use forged documents and to allow sloppy practices.

If there were more profit in Federal HAMP programs, they would be followed to the letter. There is more profit in taking people’s homes away, so that is what banks do.

A software program will not insure against lawsuits because many of the problems start at the settlement table or even before. A predatory mortgage given to a 75-year-old man is still predatory. And believe me, I’ve seen it.

As long as the problem remains ethics and not a lack of checklists, no software program will solve it.