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Loss Mitigation or the department in every lender there to minimize the losses for its investors has one purpose in mind; Save money. Seldom discussed is the banks vigorous review of their employees time usage as the old saying goes, “Time is Money.” Well the lenders generally take this to next level as they measure down to the time that it is acceptable for each call to last and the amount of time that a counselor should using the restroom!

Well, if a lender who breaks down to the minute how much time everything should take for the purpose of saving money and increasing productivity why would they do double the work and pay double the money. That is precisely what they are doing.

Recently, Countrywide, or called BAC since the Bank of America take over, took up the scheduling of two BPOs during their review of a short sale. What makes this only stranger as that through our own research no other lender that we have seen is practicing the same procedures. Every BPO that is completed must not only be paid for but once returned must go to an auditor. The way this differs from other lenders is that they do not generally order another BPO/Appraisal unless the previous one expired (as per the investor guidelines) or there is a discrepancy with the previous report. In this case it seems that both are ordered in order to take an average for the investor.

We have seen this only for our clients with primarily government loan types.