Retreat Capital Management Group, an end-to-end provider of loss mitigation and portfolio management products and other services for lenders, servicers, asset managers and investors, has deployed AnswerMine’s analytic software to power its predictive modeling services for mortgage lenders and servicers. By utilizing the company’s powerful predictive modeling service, lenders and servicers can proactively determine risk levels for mortgage loans and take decisive action to prevent delinquencies, defaults and foreclosures, rather than reactively responding to troubled loans after the loan is already at risk.
“There’s been a huge shift in the way mortgages are evaluated—we’ve moved from a property-centric approach to focusing much more on the borrower, which is exactly why lenders need to use the appropriate analytics” said Stuart Cornew, managing director for AnswerMine. “Whether evaluating entire portfolios or individual loans, AnswerMine provides ‘bottom-up’ information that incorporates borrower data as well as property and economic data to more accurately predict loan performance.”
The market is currently clogged with so many foreclosures and delinquencies that servicers can’t keep up with the volume and according to many experts, there is no sign of a slowdown. According to a February 2010 article in The Wall Street Journal, the complexity of determining which borrowers qualify for easier loan terms, along with the backlog of millions of unresolved cases are both contributing greatly to in slowing down the foreclosure process.
“There’s no question that a certain percentage of foreclosures could be prevented if the lender or servicer would proactively present the borrower an appropriate solution,” said Arvin Wijay, chief executive officer of Retreat Capital Management. “There are a variety of foreclosure alternative options, but lenders need to determine which solution is a best fit for each borrower, and do so fast enough to prevent the mortgage from becoming delinquent or getting closer to foreclosure. AnswerMine enables our predictive modeling service to provide lenders and servicers with the information to do just that.”
Retreat Capital Management’s predictive modeling services were created for lenders and servicers that want to implement targeted mortgage restructuring, retention and originations. This service, which is fully configurable, integratable and flexible, offers improved service scoring and early warning indicators for mortgage valuation models, while ensuring that any chosen alternative solution is successful on a net present value basis.
“One of the big problems in loss mitigation is that lenders and servicers have been relegated to a reactive, wait-and-see stance when it comes to delinquencies and foreclosures,” said Wijay. “Accessing the risk level of mortgages gives lenders the power to determine the appropriate solution. This type of proactivity would make a huge impact on not only the number of defaults and foreclosures, but also the speed in which cases get handled.”
For more information, visit www.RetreatCapital.com.