Executive Sees Focus Expanding Beyond Default Arena.(Mortgage servicers )

Mortgage servicing conferences have long been dominated by a focus on loss mitigation, but that may be changing, if the recent Western States Loan Servicing Conference here is any indication. The conference, hosted by the California Mortgage Bankers Association, is an annual event.

In part, rising home values have afforded servicers the opportunity to expand their focus to other areas, the chairman of the conference said in an interview with Mortgage Servicing News. Especially in California, home price appreciation has allowed troubled borrowers to sell their home at a profit and pay off the loan, avoiding foreclosure.

Scott Lehrer, who's day job is senior vice president and servicing manager at First Mortgage Corp., Diamond Bar, Calif., said that many servicers are looking at new products and services, including reverse mortgage lending.

Reverse mortgage loans, which allow seniors to tap into their home equity to meet current cash needs, represent a growing market that lenders and servicers can reach, Mr. Lehrer said.

"People are starting to recognize that there is untapped equity," he said. "And the reverse mortgages are going to become easier and easier to service."

He said that word of mouth among senior citizens is one factor driving up demand for reverse loans, also known as home-equity conversion mortgages.

Servicers are also paying attention to processes and technology that can reduce operating costs, he said.