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As homeowners continue to default on their mortgage loans, banks are desperate to determine the pre-default triggers that are causing this phenomenon. A new service offered by Atlanta-based ""VueLogic"":http://www.vuelogic.com/ will give banks the opportunity to do just that and much more.
[IMAGE]VueLogic, a National Science Foundation award winner, is a predictive analytics company that evaluates customer data and trends to provide the financial services industry with models that predict which mortgage offers will maximize revenue for originators. Starting in June 2010, though, the company is bringing its loan level statistical scoring techniques to the default space to help banks determine the customer behaviors that trigger defaults.
In order to determine this, VueLogic uses a scoring method that looks across all the channels and relationships a bank has with an individual customer and then matches that information to people that have similar behaviors and ended up defaulting on their mortgage loan. The company provides keyless matching technology that allows it to aggregate all mortgages and home equity loans with all the other bank channels, from credit cards to retail, so the bank gets a single view of the customer.
""We have persistent keyless technology that looks at 15 different attributes across all of a bank's data stores, and we score them to determine: is this is the same individual, this is how many relationships they have with you, and this is how they're behaving,"" said Tom Gordon, VueLogic CEO. ""While a borrower may be current on their mortgage, they may not be performing as well in the credit card portfolio or the retail banking portfolio, etc. There are other indicative activities of default when you look across all the relationships a consumer has, and we can do that without a key.""
VueLogic said its scoring of real time mortgage payment behavior can trigger upcoming defaults months in advance of the homeowner becoming late on a mortgage payment. Once a customer is determined at-risk of default, VueLogic will suggest a new mortgage product with new terms that should be offered to that consumer in order to avoid default and possible foreclosure.
In addition to helping banks determine which customers will default and when, VueLogic's scoring techniques can help with banks' homeowner outreach techniques. While the industry has tried numerous ways to reach troubled homeowners, VueLogic can score a consumer's behavior and forecast what will be the best offer in a homeowner outreach effort to get a response from that consumer.
""We will tell you which consumers are best matched for a particular type of homeowner outreach,"" Gordon said. ""It will demystify and take the guesswork out of trying a variety of approaches by being able to match exactly what a particular consumer will respond to.""
