Press Release

March 17, 2009

Response Analytics Releases New Software Module to Simplify Adherence to Federal Guidelines on ‘Making Home Affordable’ (MHA) Plan

Innovator Continues Leadership with Enterprise Software to Mitigate Losses on Distressed Mortgages

SCOTTSDALE, Ariz. – March 17, 2009 – Response Analytics Inc. announced today a new software module developed for mortgage servicers, investors and mortgage insurers that dramatically simplifies the administration of the loan modifications required within the Making Home Affordable (MHA) plan announced March 4, 2009. The new Home Affordable Modification module contained within Response Analytics’ Distressed Portfolio Management solution, has pre-configured all of the necessary eligibility, NPV test, standard waterfall and modification rules and calculations to administer modifications accurately, consistently and in full compliance with Treasury guidelines. The solution is available immediately.

"This solution addresses the complexity inherent in the MHA program, providing the necessary speed and flexibility servicers and investors require,” said Brent Lippman, chief executive officer of Response Analytics. “As a nimble enterprise software company, we are fortunate to be in a position to respond quickly to the dynamic needs of the distressed mortgage industry.” Recently, a client for Response Analytics published a metric that claimed that “optimization” provided a 20% increase in the NPV (Net Present Value) of the mortgage pool’s face value, as compared with non-optimized loan modifications.

This new software capability adds to the strength of Response Analytics’ industry-leading Distressed Portfolio Management solution, which delivers advanced modeling and optimization to improve decisions and results for the entire loss mitigation process.
Using this new capability:

Investors can evaluate the cost/benefit of the Home Affordable Modification program with respect to alternatives (other loan mods, deed-in-lieu, foreclosure, etc.).
Servicers can administer the Home Affordable Modification program quickly and consistently with an automated software capability that generates a pass/fail indicator for modification eligibility.
Mortgage Insurers can assess the claims they have committed to within the Home Affordable Modification program for modified loans deemed appropriate to prevent avoidable foreclosures.

For borrowers not eligible within the Home Affordable Modification program, servicers, investors and mortgage insurers will continue to use the DPM solution to provide the optimized loan treatment tailored to the individual borrower.

The Home Affordable Modification module will also include the following important benefits:

Compliance, Auditability: full documentation and audit capability from a single platform to support compliance with Treasury guidelines
Flexibility: built in configurations for The Home Affordable Modification program plus the flexibility to quickly configure future Federal Programs and program changes and ensure consistency in all modifications
Default Prediction: improved "imminent default" predictions to support eligibility determinations based on loan-level behavior modeling

Response Analytics announced their DPM solution in February 2008 as a win-win for servicers, investors, mortgage insurers and borrowers. The solution develops behavior models for each borrower by modeling at the "loan level" and then uses best-in-class optimization technology to recommend the single best outcome for each borrower based on the likelihood the borrower will “perform” within a loan treatment. Ultimately, the solution maximizes the performance of servicers/investors’ entire portfolios by delivering the lowest possible re-defaults and highest possible portfolio cash flows.

About Response Analytics
Response Analytics, Inc. is a leading Financial Services Optimization (FSO) company that solves mission critical issues and evolving business challenges, using best-in-class modeling and optimization technology. Response Analytics’ software is helping solve what is perhaps the financial industry’s most urgent challenge in a generation – providing a win-win solution for investors, servicers and borrowers alike, which optimizes loss mitigation and cash flows from distressed mortgages. Unlike other applications or approaches, Response Analytics is the only solution to offer an optimization-based solution for the mortgage industry. For more information visit us on the web at www.responseanalytics.com.

Contact:
Meir Kahtan
mkahtan@rcn.com
212.575.8188
Or Tim Manning
Tim.Manning@responseanalytics.com
480-429-4480 Ext. 118


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		WHITE PAPER / ARTICLES TRADE SHOWS PRESS RELEASES Press Release March 17, 2009 Response Analytics Releases New Software Module to Simplify Adherence to Federal Guidelines on ‘Making Home Affordable’ (MHA) Plan Innovator Continues Leadership with Enterprise Software to Mitigate Losses on Distressed Mortgages SCOTTSDALE, Ariz. – March 17, 2009 – Response Analytics Inc. announced today a new software module developed for mortgage servicers, investors and mortgage insurers that dramatically simplifies the administration of the loan modifications required within the Making Home Affordable (MHA) plan announced March 4, 2009. The new Home Affordable Modification module contained within Response Analytics’ Distressed Portfolio Management solution, has pre-configured all of the necessary eligibility, NPV test, standard waterfall and modification rules and calculations to administer modifications accurately, consistently and in full compliance with Treasury guidelines. The solution is available immediately. "This solution addresses the complexity inherent in the MHA program, providing the necessary speed and flexibility servicers and investors require,” said Brent Lippman, chief executive officer of Response Analytics. “As a nimble enterprise software company, we are fortunate to be in a position to respond quickly to the dynamic needs of the distressed mortgage industry.” Recently, a client for Response Analytics published a metric that claimed that “optimization” provided a 20% increase in the NPV (Net Present Value) of the mortgage pool’s face value, as compared with non-optimized loan modifications. This new software capability adds to the strength of Response Analytics’ industry-leading Distressed Portfolio Management solution, which delivers advanced modeling and optimization to improve decisions and results for the entire loss mitigation process. Using this new capability: Investors can evaluate the cost/benefit of the Home Affordable Modification program with respect to alternatives (other loan mods, deed-in-lieu, foreclosure, etc.). Servicers can administer the Home Affordable Modification program quickly and consistently with an automated software capability that generates a pass/fail indicator for modification eligibility. Mortgage Insurers can assess the claims they have committed to within the Home Affordable Modification program for modified loans deemed appropriate to prevent avoidable foreclosures. For borrowers not eligible within the Home Affordable Modification program, servicers, investors and mortgage insurers will continue to use the DPM solution to provide the optimized loan treatment tailored to the individual borrower. The Home Affordable Modification module will also include the following important benefits: Compliance, Auditability: full documentation and audit capability from a single platform to support compliance with Treasury guidelines Flexibility: built in configurations for The Home Affordable Modification program plus the flexibility to quickly configure future Federal Programs and program changes and ensure consistency in all modifications Default Prediction: improved "imminent default" predictions to support eligibility determinations based on loan-level behavior modeling Response Analytics announced their DPM solution in February 2008 as a win-win for servicers, investors, mortgage insurers and borrowers. The solution develops behavior models for each borrower by modeling at the "loan level" and then uses best-in-class optimization technology to recommend the single best outcome for each borrower based on the likelihood the borrower will “perform” within a loan treatment. Ultimately, the solution maximizes the performance of servicers/investors’ entire portfolios by delivering the lowest possible re-defaults and highest possible portfolio cash flows. About Response Analytics Response Analytics, Inc. is a leading Financial Services Optimization (FSO) company that solves mission critical issues and evolving business challenges, using best-in-class modeling and optimization technology. Response Analytics’ software is helping solve what is perhaps the financial industry’s most urgent challenge in a generation – providing a win-win solution for investors, servicers and borrowers alike, which optimizes loss mitigation and cash flows from distressed mortgages. Unlike other applications or approaches, Response Analytics is the only solution to offer an optimization-based solution for the mortgage industry. For more information visit us on the web at www.responseanalytics.com. Contact: Meir Kahtan mkahtan@rcn.com 212.575.8188 Or Tim Manning Tim.Manning@responseanalytics.com 480-429-4480 Ext. 118
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