Declining foreclosure volume has created a “new normal” in default levels, but servicers can’t get complacent. Ted Manley explains why now is the perfect time to optimize processes with talent and technology to prepare for the inevitable volume increase.

HousingWire: What are some of the pressing issues facing servicers right now from a regulatory standpoint?

The dower statutes in Kentucky present challenges when deciding what parties to name in a foreclosure complaint. When dower issues arise, title claims might be necessary, which means foreclosures can be delayed and court costs can increase.

Dower is a somewhat complex right given to protect spouses who are not listed as titleholders on the deed for their homestead. Dower rights in English law date back to the Magna Carta, when widows were granted some protection from the economic hardships that occurred when their title-holding husbands died.

When the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) revised the U.S. Bankruptcy Code in 2005, Section 1325 was amended to add a new paragraph that is affectionately referred to as the “hanging paragraph.” It states:

“Standing” is a legal term that relates to whether a specific plaintiff holds a right to bring a lawsuit against specific defendants. Standing does not involve factual issues in foreclosure actions, such as the amount in default. Instead, it involves whether the specific entity acting as plaintiff in the lawsuit holds the legal right and authority to sue a particular defendant or defendants.

“Time is money. Wasted time means wasted money means trouble.” Shirley Temple-Black.