With more than 40 years of experience shaping the mortgage servicing landscape, Donna Schmidt is a powerhouse in the field of loss mitigation and regulatory compliance. As President and CEO of DLS Servicing, and co-founder of the groundbreaking tech platform WaterfallCalc, Schmidt continues to lead the industry through innovation, operational efficiency, and a deep understanding of borrower needs.
Finding a Footing in Mortgage Servicing
Donna Schmidt’s entry into the mortgage world wasn’t something she planned but it quickly became a calling. While attending college, a chance connection through her aunt introduced her to a loan officer in need of processors. The timing aligned perfectly. With interest rates hovering at an eye-watering 20% at the time, she realized the origination side of the business might be short-lived. So, she made a strategic pivot into servicing and never looked back.
“I was fascinated by the complexity of mortgage servicing and how regulatory dynamics constantly evolved,” Schmidt recalled. “Every function offered something new to learn. I wanted to be part of that momentum.”
From Dining Room Table to National Impact
What began as a solo consultancy eventually evolved into one of the most respected names in mortgage loss mitigation. When the 2008 housing crisis erupted, Schmidt’s expertise was suddenly in high demand. A single client overwhelmed with hundreds of loss mitigation applications reached out for help. What followed was an entrepreneurial leap.
“I literally started at my dining room table,” she said. “I brought on a few friends who’d been laid off, and we got to work helping that client sort through default management.”
That operation eventually expanded into two fully staffed offices in western Michigan and gave rise to WaterfallCalc, a powerful online platform that automates loss mitigation calculations across all loan types. DLS now supports clients nationwide, helping with data entry, compliance documentation, legal mailings, and FHA claims all while maintaining paperless operations and top-tier cybersecurity.
Reshaping the Future Without the CFPB?
As debate swirls around potential plans by the Trump administration to downsize or dissolve the Consumer Financial Protection Bureau (CFPB), Schmidt doesn’t hold back on her critique. Her team authored a white paper earlier this year detailing the harm that a “one-size-fits-all” regulatory approach has caused, especially for government-insured loans like VA and FHA.
“Borrowers aren’t served when regulators lack practical insight,” Schmidt stated. “We’ve already got ample oversight from agencies like HUD, the FHA, and the USDA. Realigning responsibilities to more experienced agencies would help both servicers and homeowners.”
She emphasized that HUD’s familiarity with the nuances of homeownership programs makes it far more suited to craft thoughtful, impactful policy than the broad-brush tactics that have sometimes emerged from the CFPB.
Disaster Recovery: A Plan in Motion
Schmidt is no stranger to managing borrower needs during crises whether a housing meltdown or natural disaster. In the wake of the devastating wildfires in Los Angeles earlier this year, DLS quickly activated its pre-programmed disaster forbearance tools. Borrowers received automatic forbearance agreements, followed by streamlined workout options once those terms expired.
“Servicers should focus on communicating with borrowers, not drowning in paperwork,” Schmidt said. “We handle the backend, allowing our clients to focus on support and decision-making.”
Next-Gen Servicing: Technology With a Human Touch
DLS continues to stay ahead of the curve with borrower-facing tools that offer convenience and clarity. Most recently, the company added a feature to WaterfallCalc that enables borrowers to initiate loss mitigation applications from any device desktop, tablet, or mobile. Clients can embed the tool on their websites or email a secure link directly to homeowners.
“People want convenience, and this tool offers it,” Schmidt said. “The feedback has been overwhelmingly positive.”
Next on the roadmap? Real-time tracking so borrowers can monitor the status of their application, just like tracking a food delivery or a package. “If we can track a pizza, we should be able to track help with our home,” she added.
Caution and Promise in Artificial Intelligence
On the subject of AI, Schmidt is measured but optimistic. She sees its potential to boost communication, cut costs, and reduce inconsistencies but also warns of risks.
“One regulatory change, if overlooked, could lead to thousands of incorrect decisions,” she cautioned. “Servicers need to validate AI outputs rigorously and treat the technology as a supplement, not a replacement, for human oversight.”
The Rise of Streamlined Loss Mitigation and Its Limits
With agencies promoting faster, streamlined loss mitigation options, Schmidt acknowledges their value—but also their limits. While many borrowers benefit from simplified modifications that reduce monthly payments, the streamlined approach can’t account for unique personal situations like death of a co-borrower, divorce, or job loss due to disability.
“In some cases, people don’t need a lower payment they need better money management,” she observed. “Streamlined loss mitigation isn’t a fix-all, and misusing it could lead some borrowers to treat it like a form of easy home equity financing.”
Final Thoughts
Donna Schmidt is more than a leader she’s a visionary. Her ability to blend human insight with technological innovation has positioned DLS Servicing at the forefront of the mortgage servicing space. As the industry continues to shift politically, economically, and digitally leaders like Schmidt will play a critical role in making sure that homeowners, especially those in crisis, aren’t left behind. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.