Integrated tech-driven loan modification solutions shorten timelines, improve accuracy and enhance the borrower experience

Rising delinquency rates and pending changes to HUD’s permanent loss mitigation options may indicate an imminent spike in loan modification volume for mortgage servicers, as borrowers who are struggling to make their monthly payments reach for a lifeline.

On the national delinquency front, early-stage delinquencies pushed the rate up 15 basis points (bps) in June, to 3.35%, while serious delinquencies — those 90+ days past due but not in foreclosure — are up 8% year-over-year, according to the June 2025 ICE First Look. FHA delinquencies increased by 41 bps month-over-month, marking their highest June level since 2013 (with the exception of pandemic years 2020 and 2021).

At the same time, HUD has announced that, as of October 1, 2025, a borrower will be limited to one permanent loss mitigation option every 24 months, replacing the previous 18-month limit.

“We expect to see a surge in loan modification completions prior to October 1, and steady demand in the months that follow,” said Casey Bor, vice president, document generation operations, loan modification solutions, at ServiceLink. Volume has been trending upward for months, Bor added, as evidenced by the 11% increase in requests for loan mod documents ServiceLink experienced in the first half of 2025. “We are built to scale well past our current capacity, while upholding our commitment to quality and speed, as volume continues to increase.”

Streamlining timelines improves the customer experience

For servicers, the uptick in volume is welcome, provided they are working with a mortgage servicing vendor whose loan modification solutions facilitate efficient processing. ServiceLink, for example, offers an end-to-end loan modification solution that supports servicers in all 50 states with title, document generation, signing, delivery and recording services. Its proprietary EXOS® Virtual Close application accelerates the critical document generation phase to cut time and complexity from the process while ensuring greater accuracy.

“We know servicers have very tight timelines around getting documents out, signed, back and booked, so we have integrated this tech-driven solution, which systematically generates the templates, into our document generation services. When servicers order both title and document generation through ServiceLink, EXOS Virtual Close automatically pulls in all the title data so they don’t have to provide it. The efficiency of these processes can significantly reduce turn times,” said Bor.

ServiceLink currently generates final loan modification documents in about one minute. The digitization of ordering — servicers can access the document generation website directly to self-enter data and generate loan modification documents — and intake, as well as delivery and recording, also helps streamline the loan modification timeline.

Customization is seamless

Recognizing that servicers have their own requirements and preferences, ServiceLink provides customized document generation solutions for loan modification. Servicers share what they need — a cover letter, the agreement, specific addendums and the incorporation of lender logos, for example — as well as how they envision the workflow. Then ServiceLink customizes and builds those specific products.

In terms of the agreement, Bor explained, “Whether looking for a standard agreement or their own customized template, the servicer client benefits from ServiceLink’s established relationships with investors and the states. We focus on investor requirements and then work with each state to ensure the templates we build out meet their recording requirements. Our servicer partners always have our assurance that the documents we generate on their behalf are recordable nationwide.”

Delivery options to meet every need

To meet the varied needs of servicers and borrowers, ServiceLink offers a range of options for loan modification packages to be delivered:

Self-service

The servicer has the option of printing the documents directly from the website and managing the signing per the borrower’s preference.

Mail-to-borrower

ServiceLink prints and ships the documents via FedEx or UPS to the borrower, providing options for proceeding with the signing. The documents are marked with “sign here,” “notarize” and “witness” flags where applicable to assist borrowers with execution.

eSignature

ServiceLink can arrange for an eSigning with the borrower for documents that do not need to be recorded.

Remote online notarization (RON)

ServiceLink delivers the documents electronically and provides a RON integration that enables borrowers to log in anytime — 24/7 — and sign their documents within five minutes with an on-demand notary. ServiceLink also takes care of determining RON eligibility, according to state legislation and even down to the county level to ensure it will be accepted at recording. The servicer can cut this out of their workflow, saving them time and resources.

Mobile notary

ServiceLink schedules an in-person signing appointment for the borrower with a mobile notary from its national panel.

Bor pointed out that, in addition to streamlining timelines, the electronic delivery options build in accuracy by eliminating human error that can result when a person tags the areas for borrower signatures and dating. “ServiceLink’s electronic solutions enable borrowers to complete their signings correctly the first time around, minimizing post-signature errors that can be costly to servicers and annoying to borrowers. That’s one reason we expect to see increasing momentum in RON demand throughout 2025 and 2026.”

Accuracy is also enhanced when notaries are assigned from ServiceLink’s national notary panel, because every member of the panel is vetted and experienced in real estate transactions. ServiceLink has seen error rates higher than 25% when non-industry notaries are selected, while its own error rate is less than 1%.

Document recording service options are similarly flexible, as ServiceLink facilitates recording to jurisdictions nationwide. Servicers can choose standard delivery by FedEx or UPS, electronic delivery or walk-in recording services.

“Flexibility is essential to supporting the loan modification needs of mortgage servicers,” said Bor. “We always put our clients first, working to first understand their priorities and concerns, and then build out products and processes that work ideally for them and their borrowers. Speed, accuracy, cost and ease of use are always top of mind at ServiceLink.”

To learn more about loan modification as part of ServiceLink’s holistic default title offerings, go here.

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