• DISTRESSED LOAN OPTIMIZATION
• PRICE OPTIMIZATION
• NSF FEE OPTIMIZATION
• ENTERPRISE MODELING & ANALYTICS PLATFORM

Distressed Loan Optimization

Today’s distressed credit environment has placed enormous pressure on financial services institutions to carefully manage loans of all types. Although mortgages are presently the most volatile, automotive loans and commercial loans are also affected by the pervasive deterioration of credit quality.

Accurately predicting willingness to pay ahead of delinquency and default and providing actionable recommendations using optimization to prevent default and mitigate losses are now mission critical capabilities.

Response Analytics’ Distressed Portfolio Management (DPM) solution is designed to provide these capabilities in order to maximize loan recovery and cash flow.

Distressed Mortgage Loans

Increase home retention, reduce delinquency and default, minimize losses and increase cash flows associated with distressed mortgages.

The mortgage industry finds itself in an environment of instability and uncertainty that has negatively affected all constituents in some manner. Originators, Investors, Servicers, Insurers and Borrowers are all feeling the wrath of the mortgage meltdown and the uncertainty left in its wake.

At the heart of the problem is the challenge of valuing existing mortgages and, more specifically, how many of these mortgages will default and what is the forecasted financial impact. Determining which of these mortgages will perform is a challenge that has not been met by today's solutions.

What is needed is a solution that handles the entire problem from modeling borrower behavior to providing “optimized” work out strategies unique to each borrower.

Response Analytics’ Distressed Portfolio Management (DPM) solution allows financial services organizations, affected by mortgage delinquency, to optimize recovery at the loan-level in order to maximize the cash flow from each unique mortgage - and yet scale this customer-centric approach across the entire asset portfolio, for every portfolio, to maximize portfolio value.

Regardless of your role in the lifecycle of a mortgage asset, whether you service, invest in, insure or liquidate these assets, the goal is the same: maximize the cash flows and therefore profitability from mortgage assets.

Distressed Portfolio Management benefits include:

Profitability: Maximize profitability at the loan and portfolio level by developing behavioral models using servicing data to predict likelihood of performance, optimizing the workout recommendations for each borrower and integrating the recommendations within the appropriate servicing systems. Also when loans are cured with more regularity and predictability, servicing revenue is protected.

Forecasting & Valuation Accuracy: Improve accuracy of valuations and forecasts, at the loan and portfolio level, through building predictive models using servicing data (not mark-to-market) which are refreshed continuously and therefore reflective of current market conditions.

Productivity: Increase productivity by reducing workout time and increasing workout production with fewer reps. By optimizing workouts, properly matched to borrowers, resources are used more efficiently to produce a dramatically improved financial outcome.

Operating Cost Reduction: Reduce operating costs by increasing home retention and therefore reducing disposition (short sale, deed in lieu, foreclosures) and the associated operating costs. Furthermore, as loans are cured, the holding costs of servicing advances are significantly reduced.