ProCouncil™ Advisory
A Limited Liability Division
Litigation, Risk & Default Servicing Mitigation Products, Solutions and Services

BANKING, MORTGAGE LENDING & SERVICING | DISTRESSED ASSET RENEWAL™
LITIGATION | SPECIAL SETTLEMENTS | INVESTIGATIONS | RISK & ASSET PROTECTIONS
DEFENSE & PROSECUTION | SOLUTIONS FOR MORTGAGE BANKING &
RELATED INDUSTRY PARTICIPANTS, INCLUDING SERVICERS /
LENDERS / INSUREDS/INSURERS and REMICS

What we do:

We Mitigate Litigation, Operational & Surveillance Risks, including Individual and Class Action Risks,
Bankruptcy-Foreclosure-Trustee Administration & Adversary Action Risks, Loss Mitigation & Modification Risks, Credit Agency & Rating Risks, & Media Headline Risks. We work with your team to reach settlement & mitigation solutions for litigation and operational risks.

New Problems | New Solutions | New Services

I. Litigation & Risk Exposures

Problem: Rising & Hidden Litigation & Operational Risks & Exposures
Solution: We Mitigate or Eliminate Litigation & Operational Risks with Powerful New Tools

Problem: AG / Trustee / BK / Foreclosure / Escrow Administration New Risks
Solution: We Mitigate or Eliminate AG / Trustee / BK / Foreclosure Escrow Administration New Risks

Problem: Rating Agencies New Best Practices Risks & Exposures
Solution: We Mitigate or Eliminate Rating Agencies New Best Practices Risks & Exposures

Problem: Insurance Coverage (MI, D&O, E&O) & Buyback Risks & Exposures
Solution: We Resolve Insurance Coverage Issues (MI, D&O, E&O) & Buyback Risks & Exposures

Problem: New & Emerging “Best Practices” Risks & Exposures
Solution: We Mitigate or Eliminate New & Emerging Best Practices Risks & Exposures

As recent laws, regulations and cases have greatly enhanced liability exposure, the need for voluntary resolution of such issues, risks or lawsuits is now paramount. To provide the framework to such mitigation or resolution, we can act as a “neutral” or “confidential” third party, or advocate, to establish safe harbors, revised (best) practices and litigation free zones to protect you from actual and contingent risk going forward. Solutions can offer benefits of resolving or mitigating litigation & operational risks with:

OptinSettlements™

OptimalOperationalControls™

OptInSafeHarbor™ with “Revised” (Best) Practices

LitigationFreeZones™ with Confidential Strategy™ Solutions

Objectively Obtainable Safe Harbors™ | Objectively Obtainable Best Practices™

New & Emerging Best Practices

We consult banking, mortgage lending and servicing concerns and/or owners on litigation, risks, best practices and solutions. We employ powerful new proprietary and ConfidentialStrategy™ solutions that mitigate or eliminate risks and exposures. We maintain ongoing dialogue with all diverse self-interests in the mortgage banking industry including plaintiff and defense attorneys, consumer organizations, trustees, bankruptcy judges, debtor and creditor attorneys, CCCS affiliates, default servicing specialists, cooperating mortgage insurance companies, and all related industry support services, to better accommodate their viewpoints.


II. Loss Mitigation, Incentivized Modifications™ & Servicer Advances

Problem: Overwhelming Backlog of Loans In Need of Special Default Servicing Loss Mitigation
Solution: We Deliver Loss Mitigation Solutions and Principal Reduction Modifications
with Incentives for the Borrower & Lender/Servicer/Investor
Incentivized Modifications™ | DefaultReferral™

Problem: Collection & Modification of Servicer Advances (TIIPAdvances™)
Solution: TIIPAdvances™ Collection and Modification Program
Senior Priority Servicer Advances for Taxes, Insurance, P&I, Etc.
Servicer Advances – Distressed Asset Renewal™, Monitoring, Collections & Lawsuits:
Servicer Advances | TIIPAdvances™ - TIIPCollections™ - TIIPModifications™


The volume and numbers are overwhelming. The industry must act quickly to handle the ever-growing backlog of borrowers in need of immediate loss mitigation and new principal modification solutions. HotNeutral™ products like OptInMods™ will be used by lenders/servicers under a “confidential” and “neutral” OptInSettlement™ program offered by major lenders, servicers and consumer counselors, to negotiate interest, principal reductions (Shared Built In Equity Mods™) and repayment terms. HotNeutral™ products like QBieSam™ or Quarantined Built In Equity Shared Appreciation Mods™ can deliver true “affordability” for the borrower and supply incentives for all parties including the investor, lender, servicer and borrower. As exclusive Master Licensee of HotNeutral™ products, a few of our new powerful tools include:


OptInMods™ | BKMods™

OptInSettlement™

Shared Built In Equity Mods™ (Limited Loss of Principal Reduction/Forgiveness w/SAM)

Why Lose Principal? Use QBieSam™

Quarantined Built In Equity Shared Appreciation Mods™ (Up to 0% Loss of Principal w/SAM)

DefaultReferral™ will be used to coordinate the referral of OptInMods™ and OptInSettlement™ programs from lenders, servicers and foreclosure attorneys as an alternative to foreclosure. HotNeutralWingSpan™ will receive and coordinate the negotiations for lenders and servicers with borrowers at its Wingspan special default servicing center, headquartered in Plano, Texas. Alternatives for costly Foreclosure require incentive programs that motivate default loss mitigation over foreclosure procedures. Our new DefaultReferral™ system is backed by our HotNeutral™/AFN® national network of legal experts. The AFN and its handpicked national legal group has the exclusive HotNeutral™ license to implement BKMods™, OptinMods™, OptinSettlements™, OptinSafeHarbors™, LitigationFreeZone™, DefaultReferral™, and Confidential Strategy™ products and solutions. Over the past 20 years, our experts have built non-performing loan operations that successfully serviced and resolved more than 14 million loans totaling well over $50 billion in balance. Reference.

Why we are different:

Although, we are made up of industry lawyers and expert professionals, we can act as a “neutral” and “confidential” third party, or advocate, to coordinate the activities of the many players involved in any delinquency, investigation, or litigation risk, while establishing safe harbors, revised (best) practices and litigation free zones to protect you from actual and contingent risk going forward. We are the exclusive Master Licensee of HotNeutral™ litigation, risk and default servicing mitigation products, including OptInSettlement™, LitigationFreeZone™, and OptInSafeHarbors™ which are endorsed by AFN; who directly or indirectly perform over 86% of all the Foreclosure, Loss Mitigation, Bankruptcy and R.E.O. related work in the U.S.


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Litigation, Risk & Default Servicing Mitigation Products, Solutions

Incentivized Modifications™
OptInSafeHarbor™ with “Revised” (Best) Practices
TIIPAdvances™ Collection and Modification Program
LitigationFreeZones™ with Confidential Strategy™ Solutions
OptimalOperationalControls™
Confidential Strategy™
OptInSettlement™
LitigationFreeZone™
DefaultReferral™
HotNeutral™

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 HotNeutral™ | OptInSettlement™ | LitigationFreeZone™
OptInSafeHarbors™ | ConfidentialStrategy™
Sbiem™ | Shared Built In Equity Mortgage™
QBieSam™ | Quarantined Built In Equity Shared Appreciation Mods™
BKMods™ | OptInMods™
DefaultReferral™
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Other Areas of Concern:

New Federal & State Law Coordination and Compliance

Mortgage Loss Mitigation Planning

Servicers/Assignees: Avoidable “Conflicts” in Mortgage Loan Modifications & Workouts

New Conflicts, Restrictions & Trends on Solutions and Modifications Offered by Foreclosure Attorneys

New Standards for “Neutral” Workouts - Avoiding Lawsuits

Alternatives to Loan Modifications re Fair Debt Collections Practices Act (“confusion” and “over-shadowing”)

Alternatives or defenses to Negligent Handling of Negotiations for Loan Modifications, Failure to Consider Loan Modification Application over Foreclosure, etc.

Alternatives or defenses to Lack of Standing to Foreclose (assignments, assignees, MERS, etc.)

Alternatives or defenses to new law trends including North Carolina type statutes (burden to prove not in bad faith, 30 day cures, extended statutes of limitations, neutral party restrictions, disclosures to borrower, etc.)

New & Changing Trends in Foreclosure, Default & Bankruptcy

Multi Tier Servicing or M&A Conflicts of Interests, Suitors, Investors & Solutions

“Advance” Reimbursements

Pooling & Servicing Agreements and Authority Issues (Guidance, FAS Rule 140, etc.)

Uncertainty in Booking/Valuing Mortgage Servicing Rights (MSR) re LOCOM, Exit Price, Fair Value,
Level 1, Level 2, Level 3 and FAS Rule 157, 156, 133, etc.

Problems with Ratings from Rating Agencies & Reliance on Thinly Capitalized “Reps & Warranties”

Protections from Investors

Protections from Borrowers

Enforcement of Insurance Claims & Bad Faith Insurance Denials

Negotiations of Mortgage Insurance Disputes & Denials

Protections from Property & Casualty Underinsurance Risks

Lawsuit Defense & Prosecution

Lender, Seller, & Originator Buy Backs & Repurchase Agreements, Repos, Negotiations, Settlements & Litigation

New Trends in Very Late Buy Backs & Repurchase Demands

Lender, Seller, Originator & Broker Legal Risks & Asset Protection Strategies

Bankruptcy, Foreclosure & Default

Secondary Market Liability Issues

Assignee or Trust Issues - Foreclosure Standing, Lawsuits

Merger & Acquisition (M&A) Liability Issues - Lawsuits

Loan Risks & Portfolio Issues - Lawsuits

Insurance Sufficiency Analysis, Representations - Lawsuits

Risk Assessment, Exposure, & Mitigation

Warehouse Lines, Diversification & New Procedures

 Changing Net Worth Requirements and Levels of Delegation

New Due Diligence Rules

Hedged Pipeline Restrictions with Warehouse Lenders

Changing Agency Guarantee Fees (12-23 bps)

Non Agency Problems

Quality Control & Quality Assurance Upfront & Back-End

Special Consultation or Representation Re Mortgage Banking & Servicing
Issues Including Lawsuits, Prosecution & Defense

Lender / Broker / Servicer - Cessation of Business
How to Dissolve & Wind Down

Legal Risks & Asset Protection Issues

Buy / Sell Owner Issues

Executive & Deferred Compensation / Stock Options & Bonus Issues

For information click here.
Richard Ivar Rydstrom, Esq.
National Joint Client Group
(949) 678-2218 (Direct)

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LEGAL NOTICE: This article is not legal, tax or financial advice, and you may not rely on it for same. This is a brief non exhaustive newsworthy article and may be deemed an advertisement from the State Bar. All Rights Reserved ©2007 Richard Rydstrom

IRS CIRCULAR 230 DISCLOSURE NOTICE: To ensure compliance with IRS requirements, we inform you that any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used by any taxpayer, for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.