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""Loan Value Group LLC"":http://www.loanvaluegroup.com (LVG), a Rumson, New Jersey-based risk solutions provider focusing on strategic default, recently announced that its ""Responsible Homeowner Reward"":http://www.RHReward.com program was chosen by _Time_ magazine as one of the ""50 Best Inventions of 2010"":http://www.time.com/time/specials/packages/article/0,28804,2029497_2030629_2029798,00.html.
[IMAGE]Ranked fifth and the only financial product on the list, RH Reward is a system that monetarily rewards borrowers for timely mortgage payments.
""It's gratifying to our whole team that _Time_'s editors have selected the Responsible Homeowner Reward program as one of the 50 most innovative products of 2010,"" said Howard Hubler, Loan Value Group's CEO and co-founder.
[COLUMN_BREAK]Hubler says the RH Reward platform can quickly and efficiently align the interests of homeowners and lenders.
He explained, ""Homeowners are incentivized to remain current on their mortgage payments, and their lenders reward them for doing it. Our platform now gives risk owners an easy way to connect to their customers with a positive message without creating a further burden on their servicing operations.""
With approximately 13 million homes in the United States that are worth less than what the homeowner owes, _Time_ says the RH Reward program is a solution to reducing foreclosures by addressing the problem of strategic default, which accounts for as many as 30 percent of all home-loan defaults.
""Under LVG's patented Responsible Homeowner Reward program, banks promise to pay borrowers who continue to pay on time a lump sum - typically 10 percent of their original loan amount - when they sell or refinance their home,"" Time comments. ""Miss more than one payment and the reward disappears.""
The publication went on to say, ""It's still early (fewer than 5,000 people have been enrolled), but LVG says fewer than 10 percent of the borrowers in RHR have ended up defaulting, compared with a re-default rate of more than 20 percent for other loan-modification programs.""
