Past client runoff, particularly those with higher credit and lower LTVs, causes massive losses in portfolio valuations or Early Payoff (EPO) fees. Most of the time, lenders have no idea that their past client is in the market until the borrower’s new lender is ordering a payoff request. At that point it is too late.
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We are seeing a significant increase in Early Payoff (EPO) related activity in our data. Mortgage credit inquires on recently funded loans (1-12 months) have increased by 65% compared to 6 months ago.