OFS’ Loss Mitigation Pilot Leads to High Returns

""Outreach Financial Services, LLC"":http://www.outreachfs.com/ (OFS) reported returns on investment of 800 percent through its loss mitigation pilot program efforts.

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OFS, a Jacksonville, Florida-based mortgage services provider, says the ""figure is based on the incremental losses that were avoided.""

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Through the company's pilot program efforts, at-risk borrowers have access to various resources to find financial stability, including nonprofit financial counseling. OFS explained reconnecting with borrowers and having them complete counseling were critical steps for successful modifications or other solutions, which drove the exponential return on investments.

""The program's success is largely due to the model. By incorporating holistic financial counseling up front, increased cash becomes available for repayment of the mortgage, and an improved borrower debt-to-income ratio is realized, resulting in a greatly reduced re-default rate,"" said Bill Magro, CEO and president of OFS.

OFS explained borrowers receive free financial counseling through the National Foundation for Credit Counseling (NFCC) network of member agencies. During counseling, NFCC counselors review the finances of borrowers and create a workable budget, with priority given to the mortgage payment. Then, attention is given to other debt, such as a car loan.

""A delinquent mortgage payment is often symptomatic of an overall financial problem that is most effectively addressed by a trained and certified credit counselor, and that's why we emphasize resolving existing financial issues,"" Margo explained.