The Default Servicing Manager leads FOMS's default servicing function across the full non-performing lifecycle - collections, loss mitigation, bankruptcy, and foreclosure - for FOMS's own portfolio and its credit-union subservicing clients. Reporting to the Vice President of Mortgage Servicing, this role owns delinquent and defaulted accounts from early-stage delinquency through resolution (reinstatement, workout, payoff, foreclosure sale, or investor claim), and coordinates closely with the Servicing Operations Manager, who owns performing-loan servicing and member service.
OverviewThe Default Servicing Manager is responsible for minimizing credit losses while ensuring full compliance with CFPB mortgage servicing rules, investor and GSE guidelines, and applicable federal and state law across all default activities. The role manages the default team, the foreclosure and bankruptcy attorney/vendor network, and investor claim recovery, while safeguarding borrower and member rights throughout the default process.
Key ResponsibilitiesCollections & Early-Stage Default- Direct early-stage collections and delinquency management, including inbound and outbound borrower outreach, promise-to-pay, and repayment arrangements.
- Ensure CFPB early-intervention and continuity-of-contact requirements are met, including live-contact and written-notice timelines and single point of contact.
- Monitor delinquency and roll-rate trends and drive cure and reinstatement outcomes.
Loss Mitigation- Oversee the full loss mitigation workflow - application intake, completeness review, evaluation, and decisioning - within regulatory and investor timelines.
- Administer the full range of workout options: repayment plans, forbearance, loan modifications (including agency/GSE programs such as FNMA/FHLMC Flex Modification), short sales, and deeds-in-lieu.
- Ensure compliance with CFPB loss mitigation procedural protections, including acknowledgment timelines, appeal rights, and the prohibition on dual tracking.
- Maintain accurate loss mitigation tracking and default reporting codes in MSP.
Bankruptcy- Manage all bankruptcy-related accounts (Chapters 7 and 13), including proof of claim filing, motions for relief, pre- and post-petition accounting, and plan monitoring.
- Ensure compliance with bankruptcy rules - including periodic statements and payment-change/escrow notices under Rule 3002.1 - and with SCRA protections.
- Coordinate with bankruptcy attorneys and trustees and oversee referrals and case status.
Foreclosure- Manage the end-to-end foreclosure process and timelines - referral, first legal, sale, and post-sale activities - in compliance with the 120-day pre-referral rule.
- Manage the foreclosure attorney/trustee network across all servicing states (TX, LA, NM, OK), ensuring adherence to state-specific processes and investor timelines.
- Oversee foreclosure hold/stop quality controls to prevent action during active loss mitigation and to ensure regulatory compliance.
Investor Claims & Loss Recovery- Oversee timely, accurate filing of investor, agency, and insurer claims (FNMA/FHLMC, FHA/VA/USDA, MI) to maximize recovery and avoid curtailment.
- Manage advances (taxes/insurance, corporate, escrow) and reimbursement/incentive capture in accordance with investor guidelines.
Compliance & Risk- Ensure compliance with CFPB mortgage servicing rules (Reg X/Reg Z default provisions), FDCPA, SCRA, FCRA (default credit reporting), and applicable state foreclosure law.
- Manage default-related complaints and regulatory inquiries, support audits and exams, and maintain policies, procedures, and controls.
Team Leadership & Reporting- Lead, develop, and quality-control the default team and deliver training on regulatory and investor requirements.
- Report default KPIs (delinquency, roll/cure rates, loss mitigation resolution, foreclosure timeline adherence, claim recovery) to the VP of Mortgage Servicing.
Required Qualifications- 7+ years of mortgage servicing experience, with at least 3 years focused on default servicing (collections, loss mitigation, bankruptcy, and/or foreclosure).
- 2+ years of team leadership or supervisory experience.
- Working knowledge of CFPB mortgage servicing rules, FDCPA, SCRA, and investor/GSE default guidelines (FNMA/FHLMC).
- Hands-on experience with a major servicing platform; Black Knight / ICE MSP experience strongly preferred.
- Experience across the full default lifecycle - collections through foreclosure and investor claims.
- Strong analytical, negotiation, communication, and organizational skills.
- Bachelor's degree in business, finance, or a related field, or equivalent experience.
Preferred Qualifications- Multi-state default experience, including Texas non-judicial foreclosure and Texas home equity (50(a)(6)) foreclosure via expedited court order (Rule 736).
- Experience with FHA/VA/USDA and MI claim filing and loss analysis.
- Credit union / CUSO or subservicing environment experience.
- Experience managing a foreclosure/bankruptcy attorney network and default vendors.
- Experience supporting a servicing platform conversion or new-portfolio boarding in a default context.
