Do you know where your paperwork is?
Fred Becker (NAFCU's CEO) forwarded this news story to me. After reading it, only one word came to mind:
Ugh.
In short, homeowners facing foreclosure are demanding to see the paperwork that proves they owe the bank or credit union. In short, they are using the old legal strategy of "Oh yeah? Prove it!" According to the story, some lenders can't. For whatever reason: mergers, loan sales, etc., they just can't put their fingers on the magic paperwork.
What are the lessons to take from this story?
- Recordkeeping is like insurance. It is a pain. A drag. Sometimes it seems pointless and a waste. Until you need it.
- Share this post or the news story with your mortgage peeps. It is a good reminder that boring adherence to recordkeeping requirements can pay hidden dividends.
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Make sure you have your paperwork lined up. If you have limited resources, focus your efforts where it will do the most good. Look at your mortgage portfolio. Those loans that look to be at risk of foreclosure is where I'd start.
Go here to read NCUA's recordkeeping guidelilnes.
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You know the saying, may you live in interesting times. OK, enough already. I'm done with interesting.
Have a great weekend, everyone!