Today when a borrower completes the loan process to buy a home usually the borrower will not hear from the lender unless the borrower misses some payments. But this practice may soon come to an end.
In the future, lenders will begin to monitor their borrowers over the life of their loans in an effort to find tale tell signs that the borrower might be in trouble even before borrowers realize they have a problem.
When will this practice start is anyone's guess considering that lenders right now are far too busy cleaning up the current mortgage mess. But don't be surprised that one day soon lenders will start keeping an eye on their customers until their loans are paid in full.
One such company that will help lenders with the new trend of keeping tabs on their borrowers is called IndiSoft. IndiSoft is a software company that writes computer programs for default-management businesses. The company works with everyone who has a stake in saving problem loans. Those clients include, the investor, the servicer that collects the payments on behalf of the investor and finally the insurance company that guarantee's to cover the investors' losses should the borrower stop paying.
Right now, IndiSoft's technology starts when a borrower stops paying, however, in the future they will begin to monitor the borrowers behavior to see if a life-changing event such as a layoff or a divorce happens IndiSoft can notify their client so they can take any necessary action to ensure the borrower continues to make their payments on time as they promised to when they signed up for the loan.
In case an "event" does occur to a borrower and IndiSoft notifies their clients, the clients may choose to either just monitor a particular loan more closely than it usually does or they may just send a reminder a few days after a payment is due instead of waiting for the payment to be 30 or 60 days late.
On a more aggressive tone the client may go as far as calling the borrower to make sure everything is alright and offer to help the borrower immediately instead of waiting for the borrower to get behind.
Furthermore, soon a lender may ask you to sign a document at settlement that will give the servicer the right to periodically run credit reports to see if you are having any difficulty paying your bills. Another example could be that the servicer finds out that you've missed a couple of credit card payments and then may decide to contact you to see what's going on.
Who knows what the future holds for the mortgage industry, but one thing is certain and that is no one wants a repeat of the financial meltdown that started in 2007. As lenders begin to take these steps to track their investments they will ensure that it will not happen again.