BSI Financial to Provide Non-judicial Foreclosure Services

Delivery is through captive subsidiary for residential property and small balance commercial loans in Western states

Concord, CA, July 15, 2011 - BSI Financial Services is expanding its signature, high-touch specialty servicing through a wholly-owned subsidiary called ENTRA Default Solutions, LLC to provide non-judicial foreclosure services in the Western states (primarily California) for the company’s captive residential business and small balance commercial loans.

ENTRA will be providing BSI’s default management team with the ability to better manage, track, and conduct foreclosure activities through captive solutions, “resulting in improved quality that can be controlled and monitored with the highest level of transparency – not outsourced,” said Gagan Sharma, President and CEO of BSI.

Heading up the new foreclosure services initiative is Scott Myers, formerly President/CEO of Standard Trust Deed, a five-state, non-judicial foreclosure trustee, and RSVP, a 26 state posting, publishing, and auctioneering company. He will be responsible for executive management as well as setting up foreclosure operations and marketing commercial transactions. As part of this company growth, Sharma said BSI will expand its focus later in the year to commercial real estate foreclosure transactions, which some forecasters are expecting to rise by as much as 18 percent, peaking in 2015. “We see an excellent opportunity to carve out a niche in commercial transactions in California,” he said.

ENTRA will be located in Concord. The company will utilize foreclosure software from Foreclosure Solutions Inc., with a direct integration via Lenstar to BSI’s loan servicing system, creating a seamless and paperless real-time interface.

According to Myers, “Our goal is to maximize processing efficiencies by leveraging technology. This is why we have configured the solution utilizing FSI.net (a.k.a. eloandata.com) with a direct Lenstar connection to BSI’s loan servicing system. It will eliminate significant delays in referring and monitoring foreclosure activity across a network of providers.”

Foreclosure timelines at historic lengths

For more market perspective, Sharma noted that “either by design or circumstances, foreclosure timelines are being stretched to historic lengths. There needs to be some clearing out of that huge foreclosure backlog or the housing market will remain in limbo and be unable to move forward,” he noted.

The length of time that homes spend in the foreclosure process is increasing. In the second quarter, U.S. properties had an average 318 days from the initial bank notice to the completed seizure, up from 298 days in the first quarter and from 277 days a year earlier, according to RealtyTrac. Published data show that there are currently some 6.4 million residential properties 30 or more days delinquent or in foreclosure in the United States.

About BSI Financial

BSI Financial Services is a provider of mortgage subservicing, default solutions, loan quality control and business process outsourcing services. Leveraging its global delivery model and 20 year track record of success, BSI provides clients with customized solutions to improve service quality, lower costs and reduce turnaround time. BSI is an approved servicer with Fannie Mae, Freddie Mac, HUD, VA, Federal Home Loan Bank and several private investors. For more information, visit www.bsifinancial.com

The company is nominated for Servicer of the Year in the 2011 Mortgage Technology Awards competition.