Building the Loss Mitigation Door Knock Division: Reflections from 2007-09 Crisis
Feb 27, 2025
It was late 2007, maybe spilling into 2008, and the mortgage industry was feeling the heat. I was at EMC Mortgage, under the Bear Stearns umbrella then, and the signs were everywhere—ARMs resetting, payments doubling, borrowers sliding into delinquency faster than we could keep up. The phone lines were jammed with folks pleading for help, but the responses were too slow, too disjointed. I knew we had to do something different, so I took the lead and set up the loss mitigation door knock division. The idea was simple: get out there, meet people where they were, and try to stop the bleeding before foreclosure notices hit their doors. We would focus our efforts on people who had no contact with the in-house call center operators.
I pulled together a team of 10 members—some eager newbies with lending experience, some grizzled loss mitigation /collection vets—and we hit the streets in SoCal, fanning out to places like Irvine and Santa Ana, where Bear Stearns/EMC’s portfolios were thick. I’d work a portfolio as well sometimes (actually worked on some loans before I hired the team to prove the concept would work), knocking on doors, sitting down with families who were just trying to hold on. A nurse who’d lost shifts, a mechanic whose hours got cut—these were good people caught in a bad spot. They’d tell me, “Matt, I’ve called EMC, left voicemails, but it’s weeks before I hear anything—if at all.” Thirty days late stretched to sixty, then ninety, and the clock was merciless. We’d pull out those clunky loss mitigation forms—PDFs that felt like novels—and go through them together, step by step. Too often, we’d have to start over—papers lost, faxes failing, no one on the other end keeping track.
Back then, everything was manual—no digital systems, no way to check status in real time. We’d say, “We’ll get this to the right desk,” but it could take 30, 60 days for a reply, if it came at all. I’d huddle with the team, chasing updates that were like chasing shadows. These borrowers needed more than forms—they needed jobs, breathing room, a real conversation—but the process wasn’t set up for that. It was mostly “figure it out or lose it,” and I saw how it wore people down. One day, a truck driver sat me down, coffee in hand, and said, “Matt, I’ve got two kids counting on me. I just need a chance.” We mapped out a plan, but the lag time sank it—foreclosure beat us to it. That one stuck with me.
Running that division was eye-opening. We made a dent—saved over 1,500 from losing their homes to foreclosure and shaved losses by 30% here and there—but the tools were too basic, the system too rigid. Slow responses, endless paper, no empathy or real solutions—it wasn’t enough to turn the tide. I’ve carried those lessons forward. Today, in 2025, with $18 trillion in debt, 1.82 million delinquent loans, and 15 million homes bracing for climate hits, I’m building the Enhanced Loss Mitigation Practice to fix what I saw break. Predictive AI to catch defaults a year early, a portal dropping costs to $10 a file, job placement for 25,000 borrowers, insurance to weather the storms—we’re aiming for $100 million by 2027, $300 million by 2030. I’ve been in those rooms, built that team from the ground up. I know what’s at stake.
But here’s the thing: even now, things have only partially improved. Sure, there’s more tech—portals exist, some processes are digital—but delays still drag on, updates are spotty, and empathy’s still in short supply. Borrowers wait weeks for answers, forms get lost in the shuffle, and solutions like jobs or climate relief? Barely on the radar. The industry’s patched some holes since 2008, but it’s nowhere near ready for $24.2 trillion in debt or 20 million at-risk homes by 2030. I’ve seen the strongest stumble under less—this time, I’m making sure we’ve got the tools to lift them up, not just watch them fall!
interested to learn and explore more around the latest in operational transformation and revenue growth, then let’s meet!
Regards,
Matt
NICE TO MEET YOU
I'm Matt Slonaker
As the Founder of M. Allen, I empower B2B companies to achieve breakthrough sales in half the time. Leveraging strategic insights, proven methodologies, and a robust network, I have produced or overseen $200 million in new revenue opportunities for stakeholders.
With experience as a revenue, financial services C-suite executive leader, and a U.S. Navy combat veteran, I bring resilience and strategic insight to every project. My results-driven approach ensures that your goals are met and exceeded.