What does a Loss Mitigation Specialist do?
A loss mitigation specialist is responsible for evaluating outstanding debts, assisting the mortgage owner on minimizing losses by reviewing potential risks before settling a mutual agreement for the debtor and the bank. Loss mitigation specialists analyze financial documents and account statements, determining the property value, and assess the debtor's credit ratings. They also negotiate on payment plans, ensuring that the debtor understands the terms and conditions to prevent further financial damage. A loss mitigation specialist must have excellent knowledge of the financial industry, including banking products and services.
Loss mitigation specialist responsibilities
Here are examples of responsibilities from real loss mitigation specialist resumes:
- Manage internal team SharePoint and document repository.
- Document accurate loss mitigation reviews and foreclosure details via MSP.
- Submit Medicare claims through DDE.
- Deal with Nielsen and Rentrak to monitor advertiser ad ratings
- Check accounts for accuracy according to Medicare HMO guidelines.
- Resolve customer disputes and prepare adjustments to A/R when necessary.
- Monitor age balanced reports and assist with collections of NSF checks.
- Assist in the creation of ISDA and CSA reporting and tracking system.
- Work A/R reports, section denials for the purpose of collecting payments.
- Assist in creating PowerPoint decks for clients to present buy recommendations for clients.
- Advise and assist FNMA and other borrowers about their home preservation options to reduce potential company losses.
- Inform analyst of any additional information given by the customer or authorize party via MSP and instant messaging.
- Educate homeowners to determine feasibility of completing loan modifications on FHLMC loans to help them retain their homes.
- Draft and negotiate ISDA CSA agreements to maintain UMR compliance regarding VM regulation for a major financial institution.
- Partner with the REO, foreclosure and corporate legal departments in research and resolution of fraud and negligence cases.
Loss mitigation specialist skills and personality traits
We calculated that 13% of Loss Mitigation Specialists are proficient in Customer Service, Loan Modifications, and Foreclosure Process. They’re also known for soft skills such as Listening skills, Negotiating skills, and Speaking skills.
We break down the percentage of Loss Mitigation Specialists that have these skills listed on their resume here:
- Customer Service, 13%
Recommend solutions for difficult delinquent accounts, provide excellent customer service to the portfolio customers, and perform limited administrative tasks.
- Loan Modifications, 9%
Meet with each borrower to understand borrowers specific situation; identify and request the appropriate documents required for loan modification review.
- Foreclosure Process, 8%
Worked with attorneys throughout the foreclosure process for a resolution or conclusion of foreclosure proceedings.
- Inbound Calls, 5%
Received inbound calls, assisting customers courteously to answer questions and expeditiously resolve potential payment issues.
- Loss Mitigation Options, 4%
Monitored weekly foreclose sale reports daily, requested foreclosure postponement, while reviewing loss mitigation options on time sensitive customer documentation.
- Payment Arrangements, 3%
Process customers mortgage payments and negotiate payment arrangements to prevent customers from further collection activity and to reduce delinquency on accounts.
Most loss mitigation specialists use their skills in "customer service," "loan modifications," and "foreclosure process" to do their jobs. You can find more detail on essential loss mitigation specialist responsibilities here:
Listening skills. To carry out their duties, the most important skill for a loss mitigation specialist to have is listening skills. Their role and responsibilities require that "collectors must pay attention to what debtors say when trying to negotiate a repayment plan." Loss mitigation specialists often use listening skills in their day-to-day job, as shown by this real resume: "communicated foreclosure status updates with negotiators and servicing companies and ordered bpo's and appraisals of various property types. "
Negotiating skills. Another soft skill that's essential for fulfilling loss mitigation specialist duties is negotiating skills. The role rewards competence in this skill because "the main aspects of a collector’s job are reconciling the differences between two parties (the debtor and the creditor) and offering a solution that is acceptable to both parties." According to a loss mitigation specialist resume, here's how loss mitigation specialists can utilize negotiating skills in their job responsibilities: "demonstrated account resolution skills by negotiating payment arrangements with accounts receivables to help minimize portfolio delinquency below 2.5% of portfolio. "
Speaking skills. Another skill that relates to the job responsibilities of loss mitigation specialists is speaking skills. This skill is critical to many everyday loss mitigation specialist duties, as "collectors must be able to speak to debtors to explain their options and ensure that they fully understand what is being said." This example from a resume shows how this skill is used: "provided world class customer service to borrowers, attorneys, investors, management and peers, including spanish speaking clients. "
The three companies that hire the most loss mitigation specialists are:
- Flagstar Bank8 loss mitigation specialists jobs
- TD Bank6 loss mitigation specialists jobs
- Freeway Funding
5 loss mitigation specialists jobs
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Compare different loss mitigation specialists
Loss mitigation specialist vs. Assistant account executive
An assistant account executive is responsible for managing customer accounts, under the supervision of an account executive. Assistant account executives develop processes and techniques to execute projects based on clients' specifications. They assist account executives with clients' presentations for project updates and status reports. They also manage client requests to increase brand awareness, including maximizing sales strategies and resources and advertising promotions within the budget goals. They must have excellent communication and critical-thinking skills, especially when managing the clients' expectations and marketing the clients' brands to all available platforms for customers' recognition.
While similarities exist, there are also some differences between loss mitigation specialists and assistant account executive. For instance, loss mitigation specialist responsibilities require skills such as "loan modifications," "foreclosure process," "inbound calls," and "loss mitigation options." Whereas a assistant account executive is skilled in "press releases," "account management," "powerpoint," and "account executives." This is part of what separates the two careers.
Assistant account executives really shine in the professional industry with an average salary of $50,936. Comparatively, loss mitigation specialists tend to make the most money in the professional industry with an average salary of $54,484.assistant account executives tend to reach similar levels of education than loss mitigation specialists. In fact, assistant account executives are 1.0% more likely to graduate with a Master's Degree and 0.1% less likely to have a Doctoral Degree.Loss mitigation specialist vs. Debt collector
Debt collectors are also known as collection agencies and are responsible for recovering past due debts. Most of them are hired by companies to collect debt either for a fee or a percentage of the total amount recovered. Also, some debt collectors buy delinquent debts at a discount and seek to collect the debt's full amount. They have many strategies to collect debts, including calling debtor's phones, sending letters, and even visiting them at their home. However, if debtors fail to pay their due, debt collectors can either update the debtor's credit report or sue them over debt. Once sued and debtors ignore court hearings and lose by default, results could either be garnishment on debtor'debtors' wages or levies on their bank.
In addition to the difference in salary, there are some other key differences worth noting. For example, loss mitigation specialist responsibilities are more likely to require skills like "loan modifications," "foreclosure process," "loss mitigation options," and "msp." Meanwhile, a debt collector has duties that require skills in areas such as "outbound calls," "credit card payments," "debt collection," and "overdue accounts." These differences highlight just how different the day-to-day in each role looks.
On average, debt collectors earn a lower salary than loss mitigation specialists. Some industries support higher salaries in each profession. Interestingly enough, debt collectors earn the most pay in the construction industry with an average salary of $34,803. Whereas loss mitigation specialists have higher pay in the professional industry, with an average salary of $54,484.Average education levels between the two professions vary. Debt collectors tend to reach similar levels of education than loss mitigation specialists. In fact, they're 4.0% less likely to graduate with a Master's Degree and 0.1% less likely to earn a Doctoral Degree.Loss mitigation specialist vs. Bill collector
A bill collector is responsible for reaching out to the customers to collect overdue payments, negotiate repayment plans, and update account information upon settling of payments. Bill collectors monitor the contact details of the customer, utilizing locator tools and software as required by the organization, and review contract terms to decide on credit advice or escalate the issue to a higher tier. A bill collector must have excellent communication and customer service skills, especially in explaining the customer's case and perform debt collection duties efficiently.
Some important key differences between the two careers include a few of the skills necessary to fulfill the responsibilities of each. Some examples from loss mitigation specialist resumes include skills like "loan modifications," "foreclosure process," "loss mitigation options," and "msp," whereas a bill collector is more likely to list skills in "patients," "medicaid," "medical billing," and "patient accounts. "
Bill collectors earn the highest salary when working in the finance industry, where they receive an average salary of $36,403. Comparatively, loss mitigation specialists have the highest earning potential in the professional industry, with an average salary of $54,484.When it comes to education, bill collectors tend to earn similar degree levels compared to loss mitigation specialists. In fact, they're 4.4% less likely to earn a Master's Degree, and 0.1% less likely to graduate with a Doctoral Degree.Loss mitigation specialist vs. Collector
Collectors are responsible for monitoring and providing immediate actions for client accounts with overdue payments. Collectors must be able to contact clients through phone or e-mail. A collector's duty also includes negotiating on payment procedures and offering repayment plans and alternative payment solutions to free the debt. Collectors need to document any agreements made to the client, updating and verifying contact information, resolving account discrepancies and client complaints, and report escalated concerns to the management.
Types of loss mitigation specialist
Updated January 8, 2025
