September 2026
AI Governance, Loss Mitigation & Industry Updates as We Prepare for 2027
We’re heading into the home stretch of 2026, and the industry is already turning its attention to 2027 planning. Unsurprisingly, the FED raised rates for the first time since 2023 at this month’s meeting, lifting the federal funds rate a quarter point to 3.75%–4%. Mortgage rates followed, climbing to their highest level in about 20 months and inching past 7%. Higher rates, lighter volume, same playbook: adapt now and plan ahead for 2027.
In this issue, we’re digging into AI governance in mortgage servicing and what it means for your compliance program. We’ll also hear Jennifer Keys’ take on the next phase of loss mitigation guidance, take a look at RealtyBid’s new Agent Edge program and review how the Clayton team can help you meet your MERS Annual Review deadline.
It’s a busy season to be out and about at industry events, and Covius will be right in the middle of it – check out where you can catch us below.
Pete Pannes
Chief Business Officer
AI is Already Part of Mortgage Servicing. Is Your AI Governance Keeping Up?
From automated underwriting to borrower-facing chatbots, AI is already woven into daily servicing operations. Regulators have taken notice, and they’re asking harder questions about testing, transparency and oversight. Our latest Covius Compliance article walks through the GSE and MISMO guidance already on the books, the federal and state laws in play and a real-world look at Colorado’s upcoming ADMT Act requirements.
Settlement Services: Default Servicing…Simplified
Default servicing can be operationally complex and inherently fragmented, with each stage of the lifecycle carrying its own mix of unique and overlapping product and service requirements. Covius Settlement Services’ proven default servicing expertise combined with industryleading technology supports your strategic goals and elevates performance. We deliver tailored, consultative solutions that set the standard in default servicing.
Covius Settlement Solutions’ Default Servicing framework eliminates the friction that slows servicers down:
- Removing the complexity of multiple default stages
- Streamlining fragmented vendor ecosystems
- Restoring clear data visibility
- Replacing scattered access points with a unified, efficient experience
Introducing RealtyBid’s Agent Edge Program
RealtyBid has launched Agent Edge, a new program designed to help real estate agents grow their business and strengthen the connection between agents and the RealtyBid platform. Whether helping clients buy or sell, Agent Edge provides valuable tools and opportunities designed specifically for real estate agents.
How It Works
Selling: Agents can gain exposure beyond the MLS and accelerate clients’ sales through RealtyBid’s extensive network of real estate investors, industry professionals and home buyers who bid both online and at our live auctions.
Bidding: Agents can leverage customized auction property lists tailored to clients’ needs and interests, including access to exclusive live foreclosure opportunities they won’t find anywhere else.
Compliance Update: The Next Phase of Mortgage Loss Mitigation
Watch Jennifer Keys’ latest Compliance Update for her take on the recent guidance from both the VA and FHA regarding more permanent loss mitigation frameworks.
MERS Annual Review: The December 31st Deadline is Approaching
If your organization serviced 1,000 or more active MERS loans as of March 31 of this year, MERS requires you to engage a qualified third-party vendor to complete an Annual Review – with a strict submission deadline of December 31st. Missing this deadline can result in violations, fees and even member suspension, so now is the time to plan ahead rather than scramble later.
Clayton has conducted MERS Annual Reviews for more than 20 years and has long been recognized on the Official MERS Trained Annual Report Reviewer list. Our team is current on MERS’ six annual review conditions and receives guideline updates directly from MERS, so your review reflects the latest requirements. Our team helps clients avoid last-minute delays and works closely with servicers throughout the process to deliver clear, consultative results with no surprises before final submission.
Reach out to the Clayton team today to make sure your MERS Annual Review is handled by an experienced, knowledgeable partner.
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