Lender Processing Services Unveils Mass Loan Modification Solution

In an environment where defaults continue to mount and home retention has become a mainstream issue, Florida-based ""Lender Processing Services Inc."":http://www.lpsvcs.com (LPS), a provider of integrated technology and services to the mortgage industry, has created RediMod, an end-to-end solution for streamlining the mass loan modification process and improving servicers' ability to help delinquent and at-risk borrowers.
RediMod is a highly-automated and innovative solution that addresses processing and fulfillment needs for mass loan modifications by automating loan eligibility and best-fit determinations for modification programs, LPS explained in a press statement. This ability is combined with customer contact strategies that are integrated across multiple contact channels and customer follow-up capabilities that can be tailored to the servicer's requirements. Using RediMod, servicers can assist their delinquent and at-risk borrowers without replacing or upgrading their core technology infrastructure, LPS said.
""Servicers are under increasing pressure to limit the number of defaulted loans and assist borrowers in their efforts to stay in their homes,"" said Dan Scheuble, co-chief operating officer of LPS and president of the company's Mortgage Processing Services division. ""RediMod provides a flexible and immediate solution that extends a servicer's current technology rather than replaces it, allowing for a very quick implementation,"" Scheuble added.
While RediMod is intended to provide a complete solution to servicers, LPS has developed it in a modular fashion - allowing those servicers with partial workout processes in place to add capabilities as needed.
The new solution includes data and analytics models that assign each loan in a portfolio a default propensity and loss severity score, LPS explained. It also has a configurable rules engine that identifies those borrowers who are delinquent or at risk of defaulting. These under-performing or questionable loans are then run through a process that identifies the best possible workout option based upon factors set by the servicer, such as loan type, net present value, or investor. When the best workout option has been determined, LPS creates the appropriate modification package - either paper or as an eDocument - delivers it to the borrower and images it for quality control. And, through its strategic partnerships, LPS provides best-in-industry customer follow-up to ensure modifications are successfully fulfilled, the company said.
""RediMod has the flexibility to support a wide range of servicers' needs,"" said Grace Brasington, EVP of LPS' Strategic Consulting Services. ""By providing implementation and process improvement consulting, coupled with a solution based on industry best practices to streamline the key mass modification functions in a modular fashion, LPS can quickly allow servicers to better manage this unprecedented volume of workouts.""
According to LPS, approximately 50 percent of all U.S. mortgages are serviced using its Mortgage Servicing Package (MSP). Many of the nation's top servicers rely on MSP, including seven of the top 10 and 16 of the top 20, the company said.