Significant loan-level data and analysis, up-front, and surgically applied is required to manage the unprecedented volume of distressed mortgages and increasing complexities of products, programs, and regulatory guidelines in the 21st century mortgage industry
Bethesda, Maryland (PRWEB) January 22, 2009
Overture Technologies, the leading provider of decisioning solutions for transparent, accurate and responsive lending processes, announced today the launch of Mozart for Special Servicing, an automated decisioning system for servicing distressed mortgage assets. Mozart for Special Servicing is designed to address the unprecedented volume of delinquent mortgages in the U.S. today as well as the increasing complexities in modifying loans and mitigating financial losses due to foreclosure. Mozart for Special Servicing allows servicers to manage and successfully apply a more robust set of alternatives to borrowers in distressed mortgages, and more quickly yield a "best-fit" modification that can reduce repeat default rates and preserve the value of mortgage assets.
According to the latest Mortgage Bankers Association National Delinquency Survey, the residential property delinquency rate at the end of the third quarter of 2008 was 6.99 percent, up 140 basis points from the same period in 2007 and the highest recorded in the MBA survey. According to a recent report by RealtyTrac, foreclosure filings were up 81% from 2007 and default or auction notices were recorded on more than 2.3 million properties in 2008. Credit Suisse estimates another 8.1 million foreclosures are expected between 2009 and 2012. The current rate of defaulting mortgages in the U.S. today far exceeds the manpower capacity for banks or servicers to work with borrowers using traditional methods and is likely to result in more foreclosures than successful loan workouts.
"Significant loan-level data and analysis, up-front, and surgically applied is required to manage the unprecedented volume of distressed mortgages and increasing complexities of products, programs, and regulatory guidelines in the 21st century mortgage industry," said Linda Simmons, general manager of Overture Technologies' Mortgage Finance Solutions. "Mozart for Special Servicing can rapidly provide a more accurate, current view of borrower and asset information, offer a wider range of suitable alternatives to borrowers, reduce recidivism by getting borrowers into the right solutions the first time and create an audit trail for transparency."
Mozart for Special Servicing leverages Overture Technologies' award-winning automated decisioning technology used in mortgage underwriting in a process called, "automated re-decisioning," applying a sophisticated rules system to re-evaluate risk and value of a loan at any point along the mortgage value chain. Mozart for Special Servicing enables servicers to:
*Get the borrower into the right option the first time, reducing recidivism and maximizing owner-occupied home retention using more current, relevant data and information about the borrower and the asset.
*Align the interests of borrowers, bankers, secondary markets, investors and other third parties at the beginning of the loan modification process, as well as keep up with changing policies and requirements.
*Maintain consistent, defensible, and transparent, processes, levels of discretion and approval practices, calculations and agreed upon outcomes for every loan, regardless of spikes in volume and industry booms.
*Provide tailored workout options at the loan level, while still making it easy for Special Servicing operations to scale up to meet the volume of today's crisis
*Leverage existing infrastructure, integrate with legacy systems and other data facilities.
Mozart for Special Servicing offers the greater transparency required by investors, auditors and regulators with English-language policies, complete history of information changes, decisions, and selected options. The software solution integrates with and enhances existing work flow systems and is deployed as a software-as-a-service. Mozart for Special Servicing is available now and can be configured, integrated and running in a matter of weeks.
To see a demonstration of Overture Technologies' Mozart for Special Servicing, visit booth #518 at the Mortgage Bankers Association National Mortgage Servicing Conference in Tampa, February 17-20.
About Overture Technologies
Founded in 2000, Overture Technologies is the leading provider of decisioning solutions that enable transparent, accurate and responsive lending processes for the mortgage and higher education lending industries. Overture Technologies' customers are dedicated to providing superior mortgage underwriting, servicing and securitization services and to increasing students' access to higher education financing alternatives. The company's leadership team applies decades of experience from leading financial services and technology firms including Fannie Mae, Freddie Mac, Goldman Sachs, IBM and KPMG to help our customers achieve their goals. For further information, call (301) 492-2155 or visit http://www.overturecorp.com.
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