Mortgage Default Servicing Manager

Job Type: Full-time

Exemption Type: Exempt

Wage Amount: $26.16 per hour minimum

Primary Functions

The Mortgage Default Servicing Manager oversees default risk management and loss mitigation functions within the mortgage servicing operation, ensuring alignment with the credit union’s risk appetite, regulatory requirements, and member-focused resolution strategies. This role is responsible for the oversight of delinquency management, loss mitigation programs, foreclosure and bankruptcy processes, asset recovery activities, vendor performance, and continuous process improvement.

The position ensures adherence to internal policies and procedures, investor and secondary market guidelines, and all applicable Federal and State laws and regulations. The role maintains advanced knowledge of mortgage servicing operations and default resolution practices and provides leadership, training, and guidance to staff to achieve portfolio performance and loss reduction objectives.

Additionally, the Mortgage Default Servicing Manager will serve as a key point of contact for investor agencies, third-party vendors, and indirect mortgage partners.

Employee Management

• Supervise the mortgage lending collections, loss mitigation, and default services team including hiring, training, coaching, and conducting evaluations and recommending terminations.
• Promote a culture of teamwork, enthusiasm, success, and exceptional member service through positive interactions with all team members, leading by example with initiative, flexibility, dedication to the Credit Union mission and core values, and a passion for “people helping people.”
• Monitor and evaluate individual performance, providing monthly feedback and conducting annual performance appraisals.
• Establish and review performance standards, complete evaluations on schedule, and administer disciplinary actions when necessary.
• Conduct regular team meetings to communicate updates, align priorities, and reinforce service standards.
• Establish and maintain a career development plan for each employee by identifying personal career goals, individual strengths, and areas for improvements, supplying training and cross-training, and coordinating opportunities for learning and participation.
• Create and maintain staff schedules to ensure efficient coverage and high-quality member service.

Departmental Support

• Direct and manage all collections, loss mitigation, and default servicing functions for mortgage, home equity, and mobile home chattel loans, including accounts in delinquency, default, bankruptcy, foreclosure, and post repossession status.
• Monitor delinquency, default, cure rates, recovery rates, and loss severity, and implement strategies to reduce credit losses and improve portfolio performance.
• Serve as the primary escalation point for complex default scenarios, legal matters, member complaints, and regulatory or investor inquiries related to loss mitigation and default servicing.
• Ensure timely and compliant evaluation and execution of loss mitigation solutions, including loan modifications, repayment plans, forbearance, short sales, deeds in lieu of foreclosure, and other default resolution options.
• Oversee all default activities in compliance with Fannie Mae, Freddie Mac, Federal Home Loan Bank (FHLB), investor, insurer, and applicable regulatory requirements.
• Manage the bankruptcy servicing lifecycle, including coordination with legal counsel, filing and monitoring proofs of claim, payment application, plan compliance, and adherence to court orders and investor guidelines.
• Oversee the foreclosure process from onset through resolution, ensuring proper escalation, timeline management, vendor oversight, and compliance with federal, state, investor, and secondary market requirements.
• Lead the recovery, repossession, and liquidation of mobile home chattel loans, including repossession strategy, title resolution, collateral condition assessment, and compliance with applicable repossession and consumer protection laws.
• Manage the resale and disposition of repossessed mobile homes, including pricing strategy, coordination with dealers, auctions, and resale partners, with a focus on maximizing recovery and minimizing losses.
• Direct asset resolution and disposition activities across all real estate collateral types, including short sales, REO transitions, chattel asset liquidation, and third-party asset sales.
• Collaborate with mortgage quality control to identify issues, determine root causes, and implement solutions that strengthen risk management and regulatory compliance across default servicing functions.
• Collaborate with collections leadership regarding cross-over member circumstances that involve consumer and mortgage collections, loss mitigation, or default efforts.

Miscellaneous Duties

• Participate in departmental planning and budgeting for staffing and future initiatives.
• Maintain advanced knowledge of mortgage and home equity loan products, programs, policies/procedures, and guidelines.
• Ensure compliance with federal, state, and investor regulations governing mortgage servicing operations.
• Participate in organizational and departmental projects with a focus on enhancing member experience, team member experience, and overall efficiency.
• Conduct individual dialogs with direct manager at least monthly.
• Participate in outside credit union sponsored activities and community/education events to increase credit union awareness.
• Perform other duties as required or assigned.

Education and Experience

• High school diploma or GED equivalent required.
• Bachelor’s degree preferred.
• Five years of mortgage loss mitigation and default servicing experience required.
• Five years of late-stage delinquency, foreclosure, and bankruptcy administration experience required.
• Five years of Fannie Mae and Freddie Mac default servicing experience required.
• Three years of management or leadership experience required.

Knowledge, Skills & Abilities

• Demonstrated team leadership abilities.
• Advanced working knowledge of the full default servicing lifecycle, including:
  • Delinquency stages (early, mid, late)
  • Loss mitigation evaluation and decisioning
  • Foreclosure initiation, progression, and resolution
  • Post-foreclosure and post-repossession asset handling
• Advanced working knowledge of mortgage and home equity lending products, processes, guidelines, Federal and State laws and regulatory compliance.
• Knowledge of Credit Union lending/core systems.
• Advanced knowledge of operational, internal, and security controls applicable to a mortgage lending environment.
• Excellent ability to communicate in a professional manner to internal and external partners (e.g., outside clients, partners, and vendors), including presentation skills.
• Strong logic, analytical, research, and critical thinking skills.
• Ability to articulate complex concepts and ideas to technical and non-technical audiences.
• Ability to handle multiple priorities and confidential information.
• Attention to detail to provide accurate, relevant, and timely information to internal and external members.
• Advanced MS Office experience.
• Ability to work independently and as part of a team, with flexibility to adapt to change.
• Critical thinking skills, including dealing with potential conflict.
• Analytical and organizational skills.

Additional Compliance Requirements

All mortgage-related positions are subject to an additional background check at the time of hire and annually thereafter to ensure compliance with Federal National Mortgage Association (FNMA) requirements.

This background check includes verification against the following:

• GSA: General Services Administration
• EPLS: Excluded Parties List System
• HUD: U.S. Department of Housing and Urban Development
• LDP: List of Parties Excluded or Disqualified from Federal Procurement and Non-Procurement Programs
• FHFA: Federal Housing Finance Agency
• SCP: Suspended Counterparty Program

Failure to authorize the annual background check, or the employee being listed on one of the prohibition lists above, may lead to loss of the ability to participate in the mortgage origination or servicing process and disciplinary action, up to and including termination of employment.

Desirable Traits

• Professional appearance
• Positive outlook
• Enjoy working with public using courteous professional approach
• Able to work flexible hours
• Dependable
• Versatile in all aspects of the Credit Union

Physical Functions

• Must have the ability/stamina to work at least 40 hours a week.
• Will frequently reach, feel, bend, stoop, carry, finely manipulate, and key in data.
• Must be able to communicate continuously through telephone, e-mail, and in-person communications.
• Must be able to engage in problem-solving skills to help identify and solve potential issues in the field.

Decision Authority

• Decisions made independently: Evaluating and recommending loss mitigation solutions.
• Decisions requiring supervisory approval: Situations outside A+FCU policies and procedures.