""Loan Value Group LLC"":http://www.loanvaluegroup.com, a solutions provider that helps mortgage lenders address the risk of strategic default, has named Craig Lipsay as managing partner. In this role,[IMAGE]
Lipsay will work directly with institutional clients to implement the company's ""Responsible Homeowner Reward"":http://www.rhreward.com (RH Reward), a program that provides cash payments to eligible homeowners affected by negative equity as long as they remain current on their mortgages.
Lipsay has 19 years' experience in the residential and commercial mortgage industries. He is a former co-head of the North American Strategic Solutions Group at Merrill Lynch, and earlier, was head of North American Securitized Product sales at Morgan Stanley.[COLUMN_BREAK]
""Craig's depth of experience in the mortgage industry makes him a valuable addition to the Loan Value Group team,"" said CEO Howard Hubler. ""He understands the needs of mortgage risk owners, including servicers, and how they can deal with the widespread problem of potential strategic defaults in their portfolios. At the same time, Craig is well equipped to help as we scale up the RH Reward program on a national level.""
Under the company's RH Reward program, lenders and servicers identify borrowers at risk of walking away from their mortgage and implement an incentive program in which the homeowner receives a monetary ""reward"" if they continue to keep up with their payments. The amount of individual rewards is dependent on several factors, including the size of the mortgage and its loan-to-value ratio.
Lipsay said, ""RH Reward is the only program in place today that can quickly and effectively address the needs of the millions of homeowners suffering from negative equity who want to stay in their homes and make responsible decisions. And, unlike other alternatives, RH Reward can be implemented by the owners of risk in a variable cost, turn-key fashion without burdening their current infrastructure.""
The program was developed on a foundation of behavioral economics, and according to Loan Value Group, borrowers' enrollment in the program can be processed in as little as 48 hours.