Overture and SigniaDocs Partner to Improve Loan Mod Timelines

""Overture Technologies"":http://www.overturecorp.com, a provider of lending decisioning solutions, and ""SigniaDocs"":http://www.SigniaDocs.com, a technology service provider for the mortgage industry, announced the creation of a joint offering on Friday that the companies say will ""speed servicing of distressed mortgages, reduce repeat default rates, and improve transparency.""
The new technology combines Bethesda, Maryland-based Overture’s Mozart for Special Servicing with Houston, Texas-based SigniaDocs’ electronic modification technology. Overture explained that its Mozart for Special Servicing allows servicers to manage and successfully apply a more robust set of alternatives to borrowers in distressed mortgages, and more quickly yield a ""best-fit"" modification that can reduce repeat default rates and preserve the value of mortgage assets. SigniaDocs’ eMortgage technology enables the eDisclosure, eSigning, and eVaulting of modification documents, both securing and speeding the resolutions recommended by Mozart for Special Servicing, SigniaDoc said.
The two companies contend that the need for new technology which transforms the mortgage loss mitigation process is ""enormous,"" pointing to predictions by the ""HOPE NOW Alliance"":http://www.hopenow.com, which reported one million loan modifications in 2008 and expects two million or more in 2009. The companies also cited ""Chase"":http://www.jpmorganchase.com/ as another strong example: the bank has implemented mass modifications on $1 trillion worth of loans it services for others and $22 billion of loans in its own portfolio.
If these large volumes of distressed mortgage transactions can be closed, the companies said, a significant cost savings opportunity exists for both borrowers and investors. But closing them has been the hard part. After agreeing to loan modifications over the phone, many borrowers seem to lose hope in keeping their homes and choose not to sign documents when they arrive a day or two later. The joint effort between Overture Technologies and SigniaDocs is designed to produce better modification agreements and provide immediacy to the process, while borrower interest is still high, the companies explained.
Linda Simmons, general manager of Overture’s Mortgage Finance Solutions, added, ""Once a borrower and investor agree on the specifics of the modification, the borrower can immediately eSign the documents online in a secure environment, without any waiting. The process is completed very quickly, and we’re learning speed is critical to loan modification success.""
Tim M. Anderson, SigniaDocs’ president, went on to say, ""We’ve found if the documents can be presented online within minutes, over half of the borrowers approve the modification the same day and nearly 80 percent do it within two days.""