Real Estate Loss Mitigation Specialist

Job Description

Job Description:\n\nPosition Summary\nThe Real Estate Loss Mitigation Specialist manages delinquent Texas Home Equity Loans and HELOCs from early-stage delinquency through foreclosure referral or charge-off. The role proactively engages borrowers experiencing hardship, conducts detailed financial and collateral analysis, and structures sustainable retention and liquidation solutions — including repayment plans, forbearances, loan modifications, short sales, deeds-in-lieu, and settlement agreements — in full compliance with the Texas Constitution Article XVI Section 50(a)(6), Texas Finance Code Chapter 392, CFPB mortgage servicing rules, and CUTX policy. The Specialist balances member advocacy with protection of CUTX's collateral position, partners with foreclosure counsel and bankruptcy counsel as needed, and uses CUTX-approved AI and analytics tools to support workout analysis, document triage, and decision support.Key ResponsibilitiesReal Estate Portfolio Management & Early Intervention\n\n Manage delinquent Texas Home Equity Loans and HELOCs from early-stage delinquency through foreclosure referral or charge-off.\n Proactively engage borrowers to identify hardship causes and evaluate sustainable retention solutions.\n Conduct detailed financial analysis including income verification, expense review, and property valuation assessment.\n Monitor high-risk accounts and intervene prior to foreclosure escalation when viable retention options exist.\nLoss Mitigation & Workout Structuring\n\n Evaluate, structure, and negotiate loss mitigation options including repayment plans, short-term forbearances, long-term forbearance agreements, loan modifications (term extension, rate adjustment, capitalization of arrears where permitted), partial claim or deferral options (if applicable to product structure), deed-in-lieu of foreclosure, short sale approvals, cash-for-keys agreements (where applicable), and settlement agreements on charged-off or deficiency balances (where allowed).\n Analyze cost-benefit of each workout option versus foreclosure action.\n Review and validate borrower financial documentation to determine eligibility.\n Evaluate debt-to-income ratios, property equity position, and borrower hardship sustainability.\n Ensure all workout agreements comply with Texas constitutional home equity requirements (Article XVI, Section 50(a)(6)).\n Present complex or exception requests for management approval when outside delegated authority.\n Ensure workout decisions align with investor or participation agreement requirements.\nForeclosure & Liquidation Decision Support\n\n Determine when foreclosure referral is necessary after evaluating all reasonable retention efforts and refer to foreclosure counsel.\n Ensure compliance with cure notice requirements, 20-day and 60-day provisions, and all constitutional timelines.\n Coordinate with foreclosure counsel to prepare accounts for referral.\nShort Sale & Deed-in-Lieu Administration\n\n Review property valuations (BPOs, appraisals) to assess collateral exposure.\n Analyze lien position and title considerations.\n Negotiate short sale terms with listing agents, attorneys, and borrowers.\n Coordinate payoff figures and deficiency treatment.\n Review and approve deed-in-lieu documentation ensuring clear title transfer and waiver terms align with policy.\nCompliance & Legal Coordination\n\n Ensure strict compliance with Texas Constitution Article XVI Section 50(a)(6), Texas Finance Code Chapter 392, CFPB mortgage servicing rules (Regulation X and Z where applicable), and FDCPA standards as applicable to first-party collections.\n Monitor bankruptcy filings and coordinate with legal counsel.\n Maintain audit-ready documentation of financial packages, decision rationales, and workout approvals.\n Escalate potential compliance risks immediately.\nMember Communication & Professional Judgment\n\n Conduct complex borrower conversations with empathy and authority.\n Clearly explain legal rights, foreclosure implications, and workout eligibility.\n De-escalate emotionally charged situations while maintaining firm boundaries.\n Balance member advocacy with protection of the credit union's collateral position.\nAI-Augmented Workflow & Continuous Improvement\n\n Use CUTX-approved AI and analytics tools to support workout analysis, document triage, and decision support, applying human-in-the-loop review on every member-impacting output.\n Identify patterns in delinquency, workout outcomes, and collateral performance and recommend process or policy improvements to the Manager of Collections.\n Participate in pilots of CUTX-approved AI tools applicable to real estate loss mitigation, provide feedback, and adopt approved enhancements.\n4. Performance Outcomes & KPIs\nOutcome\nPrimary KPI\nReporting Cadence\nTarget / Direction\nBorrowers in hardship are engaged early to maximize retention opportunities.\nEarly Intervention Contact Rate — percent of delinquent real estate accounts with documented borrower contact within target days of delinquency.\nMonthly\n▲ [Target — confirm with VP, Collections]\nCUTX maximizes sustainable retention outcomes prior to foreclosure.\nWorkout Resolution Rate — percent of eligible delinquent accounts resolved through an approved loss mitigation option (modification, forbearance, repayment plan, short sale, deed-in-lieu) rather than foreclosure.\nMonthly\n▲ [Target]\nLoss mitigation decisions minimize net loss relative to foreclosure alternative.\nNet Loss Avoidance — modeled savings of executed workout versus foreclosure cost-benefit baseline, per resolved account.\nQuarterly\n▲ [Target]\nEvery loss mitigation file is audit-ready and constitutionally compliant.\nAudit-Ready File Rate — percent of files passing internal compliance review without material exception, including Article XVI §50(a)(6) compliance.\nQuarterly\n▲ ≥ 98%\nForeclosure referrals occur only after reasonable retention efforts and within required timelines.\nTimely Notice & Referral Compliance Rate — percent of foreclosure referrals with all required cure notices, 20-day and 60-day provisions, and constitutional timelines documented and met.\nMonthly\n▲ 100%\nAI-augmented decision support outputs are reviewed by the Specialist after action.\nHuman-in-the-Loop Review Rate on AI Outputs — percent of AI-recommended workout analyses, document extractions, and prioritizations reviewed and either accepted, adjusted, or escalated by the Specialist after action.\nMonthly\n▲ 100%QualificationsEducation\n\n High school diploma or equivalent required.\n Bachelor's degree and/or equivalent experience in a credit union or banking environment preferred.\nExperience\n\n Minimum of three to five (3–5) years of experience servicing delinquent real estate loans.\n Demonstrated experience handling home equity loans and HELOCs in Texas.\n Loss mitigation or loan modification experience.\n Knowledge of foreclosure processes specific to Texas real property.\n Familiarity with bankruptcy procedures as they relate to secured debt.\n Prior credit union or community bank experience preferred.\n Prior experience using AI- or analytics-driven decision support tools preferred.\n Bilingual English / Spanish preferred.\nLicenses, Registrations, and Certifications\n\n Valid Texas driver's license (required for occasional field investigation travel).\n [Confirm any additional servicing or NMLS-related registrations required by product or regulation.]\nKnowledge & Skills\n\n Working knowledge of Texas Home Equity lending regulations (Texas Constitution Article XVI, Section 50(a)(6)).\n Working knowledge of Texas Finance Code Chapter 392.\n Working knowledge of CFPB mortgage servicing and debt collection regulations (Regulation X and Z, FDCPA standards as applied to first-party collections).\n Strong analytical, critical thinking, and problem-solving skills, including the ability to interpret financial documents, property valuations (BPO, appraisal), and title considerations.\n Strong negotiation and conflict-resolution skills; ability to handle difficult conversations with professionalism and composure.\n Excellent interpersonal and written/verbal communication skills, with the ability to interact effectively at all levels of the organization and to communicate complex legal and financial concepts to members.\n High attention to detail, documentation discipline, and integrity.\n Strong organizational and time management skills with the capability to manage multiple complex files simultaneously.\n Proficiency with Microsoft Office (Excel, Outlook, Word, Teams) and the ability to learn CUTX's loan servicing and collections systems.\nCore Competencies\nCompetency\nProficiency Level\nWhy This Matters in This Role\nAI Literacy\nIntermediate\nThe role uses AI-augmented workout analysis, document extraction, and decision support tools (Tier 2) and is responsible for human-in-the-loop review on every member-impacting output.\nMember Centricity\nIntermediate\nThe role engages members in significant financial hardship; empathy, clarity, and procedural fairness directly affect retention outcomes and CUTX's reputation.\nRisk Awareness\nAdvanced\nTexas home equity loss mitigation carries high constitutional and regulatory exposure; the role must identify and escalate compliance and legal risks in real time.\nOperational Discipline\nAdvanced\nEvery file must be audit-ready; documentation gaps in home equity workouts create direct legal, examination, and constitutional-compliance exposure.\nCompliance Orientation\nAdvanced\nArticle XVI §50(a)(6), Texas Finance Code Ch. 392, CFPB Reg X and Z, FDCPA, and SCRA are applied in daily work; errors have direct member and legal impact.\nNegotiation & Conflict Resolution\nAdvanced\nThe role negotiates workouts, short sales, and settlements with borrowers, counsel, agents, and investors while balancing member outcomes and CUTX's collateral position.\nAnalytical Reasoning\nAdvanced\nThe role performs cost-benefit analyses of workout options versus foreclosure, evaluates DTI, equity position, and hardship sustainability, and interprets BPOs and appraisals.\nCommunication\nIntermediate\nThe role explains complex legal rights and workout terms to members and drafts decision rationales and member communications across multiple channels.AI & Technology ExpectationsAI-Augmented Workflows\nThe following workflows are AI-augmented in this role. The Real Estate Loss Mitigation Specialist is expected to work fluently within these workflows, exercise sound judgment over AI outputs, and follow all applicable controls.\n\n AI-assisted workout analysis and decision support — AI synthesizes borrower financial data, property valuation, lien position, and hardship indicators to recommend candidate workout options for Specialist review.\n Document extraction and triage — AI extracts structured fields from borrower hardship packages, pay stubs, tax returns, BPOs, and appraisals to populate the servicing system.\n Delinquency prioritization and early-intervention queue scoring — AI prioritizes the delinquency queue based on risk indicators, equity position, and hardship signals.\n AI-assisted drafting of internal decision memos and call notes — AI drafts internal summaries of borrower conversations and workout rationales for Specialist review and finalization.\nAI Tier and Human-in-the-Loop Responsibility\nThis role operates in AI Tier 2 for its principal AI-augmented workflows (see Appendix A). The Real Estate Loss Mitigation Specialist retains accountability for any decision, communication, or member/employee-impacting action influenced by AI output, consistent with the CUTX Generative AI Usage Policy §3.4.\nThe Real Estate Loss Mitigation Specialist is required to:\n\n Apply human-in-the-loop review on every AI-recommended workout option, document extraction, queue prioritization, and member-facing communication after action is taken.\n Stop reliance on AI output and escalate immediately if the output appears inaccurate, biased, non-compliant, or outside the role's documented scope (Generative AI Usage Policy §3.5).\n Refrain from entering member non-public personal information (NPI), confidential CUTX information, or material non-public information into any AI tool not explicitly approved for that data classification.\n Complete all required AI training within thirty (30) days of hire and maintain currency on annual refreshers.\nApproved AI Tools\nThe role is approved to use the following AI tools in performing essential functions (subject to the Generative AI Usage Policy and any tool-specific guidance issued by the AI Council):\n\n CUTX-approved internal AI assistants (e.g., Sam) for general productivity and approved knowledge tasks.\n Microsoft Copilot for office productivity (drafting, summarization, spreadsheet support).\n CUTX-approved AI-augmented decision support tools deployed within the loan servicing and collections platforms.\n CUTX-approved property valuation analytics tools (e.g., BPO/AVM platforms) used in conjunction with AI decision support.\n\nUse of AI tools outside this list requires prior approval from the role's department leader and the AI Council, per the Generative AI Usage Policy §4.Prohibited AI Use\nIn addition to the prohibited uses defined in the Generative AI Usage Policy §3.6, the following are specifically prohibited in this role:\n\n Using AI output as the sole basis for any adverse member action, including denial of a loss mitigation request, decision to refer to foreclosure, or rejection of a short sale or deed-in-lieu.\n Entering member NPI (full account numbers, Social Security numbers, member loan documents, hardship packages) into any AI tool not explicitly approved for that data classification.\n Using consumer AI tools to draft member-facing legal notices (cure notices, acceleration notices, foreclosure-related correspondence); these documents must be drafted from approved templates and reviewed per existing procedure and counsel review where required.\nCompliance & Regulatory ResponsibilitiesEnterprise Compliance Obligations\nThe Real Estate Loss Mitigation Specialist is responsible for all enterprise compliance obligations applicable to a CUTX team member, including BSA/AML, OFAC, USA PATRIOT Act/CIP/CDD, GLBA and the Safeguards Rule, Fair Lending laws (ECOA/Reg B, Fair Housing Act), UDAAP, Information Security and Acceptable Use, and the CUTX Code of Conduct.AI-Specific Compliance Obligations\nThe Real Estate Loss Mitigation Specialist is responsible for the CUTX Generative AI Usage Policy (TRAIGA / HB 149-aligned), the CUTX AI Playbook (including Tier 2 obligations applicable to this role), and Texas Responsible Artificial Intelligence Governance Act (TRAIGA / HB 149) requirements applicable to the role.Role-Specific Compliance Obligations\n\n Texas Constitution Article XVI, Section 50(a)(6) — home equity lending and workout requirements.\n Texas Finance Code Chapter 392 — debt collection.\n Texas property and foreclosure timeline requirements, including cure notice, 20-day, and 60-day provisions.\n CFPB mortgage servicing rules — Regula