Early Warnings
Signs of Distress to be watchful of:
- Escalating repurchases of loans from investors
- Tightening by creditors/investors
- Significant changes, positive or negative, in delinquencies, foreclosures, etc
- Adverse loss severity trends
- Changes in key vendor relationships
- Backlogs in Post Closing
- Significant expense reductions in core servicing areas
- Senior underwriter and/or internal auditor turnover
- Earnings and cash flow variances from plan