Lake Forest, Calif. (Dec. 2011) – Chastened by the mortgage meltdown and credit card losses, student loan lenders are acting pre-emptively to engage borrowers and establish a communications bridge less likely to be burned. Student loans are poised to become the next financial crisis flash point. Total outstanding student loan balances are closing in on $1 trillion and equal to, or even greater than, all credit card debt. But the default rate on student loans is far higher. According to the U.S. Department of Education, the default rate on student loans is nearly 9 percent, up from 7 percent in 2010  >

By Amilda Dymi Changes to the Home Affordable Refinance Program fashioned as “penalties may work better than incentives” may soar current demand for third-party component servicing, which insiders say is shaping “the new tomorrow” of the mortgage servicing process.  >

Right-party contact in the community banking world means identifying the proper person on a deed, mortgage or auto loan contract with whom a lender, servicer or other creditor needs to reach in a distressed situation. Once that person has been identified, the servicer, or a third-party field service professional acting on their behalf, must communicate with them, assess the situation and take appropriate action.  >