FICO Teams With Industry Partners To Release Loan Mod Solution

Posted by Orb Staff on April 16, 2009 No Comments
Categories : Mortgage Servicing

as introduced the FICO Mortgage Recovery Initiative (MRI), a loan modification solution developed in collaboration with the Homeownership Preservation Foundation, Money Management International and Equifax. ‘Now that the U.S. government has established guidelines for mortgage remediation, we're able to provide comprehensive solutions that address everyone's concerns, leveraging the broad expertise of our partners and FICO's deep understanding of consumers' financial health and credit worthiness," says Mark Greene, FICO's CEO. FICO MRI addresses the mortgage crisis holistically by combining the capabilities of its collaborators: Homeownership Preservation Foundation is a national nonprofit that provides a network of counseling agencies certified by the U.S. Department of Housing & Urban Development; Money Management International is a full-service credit counseling agency; and Equifax is an information solutions provider. The new FICO solution complies with the federal Making Home Affordable (MHA) program and contains five components for expediting loan modifications and mitigating future foreclosures. Mortgage Relief Online, a new consumer Web site (www.mortgagereliefonline.com) available April 17, processes confidential consumer applications for government-funded loan remediation programs at no cost to the consumer. In keeping with an emphasis on consumer empowerment, confidential credit counseling is provided to eligible consumers by FICO-certified counselors via a partnership with Money Management International. FICO MRI also includes a risk analyzer, which identifies borrowers who are likely to default or need assistance before they become delinquent, and a response analyzer, which involves analytics that are designed to help servicers create outreach campaigns. The risk analyzer's integration with the Mortgage Relief Online Web site provides a mechanism for managing large volumes of loan remediation requests, FICO says. As the fifth component, FICO has introduced its Mortgage Portfolio Optimizer, which allows servicers to present appropriate loan product offers to at-risk customers. According to FICO, Mortgage Portfolio Optimization provides workflow infrastructure and analytic logic that result in better management of portfolio risk, and, ultimately, at-risk customers, while preserving loan portfolio value. "We firmly believe that innovative solutions like FICO MRI, which results from our shared interest in helping consumers, and from partnerships among policy-makers and the mortgage lending industry, are the most effective ways to preserve and expand homeownership," says Colleen Hernandez, president and executive director of the Homeownership Preservation Foundation. SOURC

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