Loan Value Group Says Underwater Homeowners with VA-Backed Mortgages May Be Eligible For Cash Rewards for Staying Current

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Innovative, incentive program helps veterans and serving military deal with “negative equity”

Loan Value Group

Loan Value Group

Institutions that service VA-guaranteed loans are operationally burdened by historically high default rates.

While nearly 13 million homeowners in the U.S. owe more on their mortgages than their homes are worth, veterans and serving military are often negatively impacted due to property location and deployment restrictions. As a result, Loan Value Group, based in Rumson, New Jersey, has made the Responsible Homeowner Reward® (RH Reward®) program available to eligible homeowners through participating servicers.

To date, the RH Reward program has provided assistance to nearly 7,000 veterans and serving military and their families who had taken out mortgages backed by the Department of Veteran Affairs.

“Institutions that service VA-guaranteed loans are operationally burdened by historically high default rates,” said Frank Pallotta, a Managing Partner with Loan Value Group, the exclusive provider of RH Reward. “Furthermore, these servicers face the potential for substantial financial loss from the short-fall in VA Insurance. This risk of loss, along with the opportunity to help those who bravely serve our country, should make foreclosure prevention for these homeowners all the more critical.” Loan Value Group, together with participating servicers, can help underwater VA borrowers by offering cash rewards for making timely mortgage payments. Interested homeowners should contact their servicer for more information.

The RH Reward program is available to homeowners in all 50 states, the District of Columbia and Puerto Rico. The size of the reward is dependent on many factors, including the size of the mortgage, the amount of negative equity, and region of the country.

Here’s how RH Reward works:
1.    The homeowner with negative equity is presented with an initial RH Reward – at no cost to the borrower.
2.    To keep their RH Reward status active, the homeowner makes their full and timely mortgage payments.
3.    For a fixed period of time following enrollment, an additional amount of money will be added to the RH Reward account for each month the homeowner makes an on-time payment.
4.    Once the mortgage balance is paid in full either by sale of home, refinance of home, or payoff, the homeowner can claim their entire RH Reward.
As a private-sector solution, RH Reward requires no government or taxpayer money to fund the program. The program is designed as a simple legal agreement between the servicer and the homeowner, resulting in an alignment of interests of all parties.

About Loan Value Group LLC
Founded in 2008, Loan Value Group LLC (@LoanValueGroup) is a large-scale, turn-key provider of mortgage incentive strategies that positively influence consumer payment behavior on behalf of residential risk owners and servicers. Based in Rumson, New Jersey, LVG is the creator and exclusive provider of the Responsible Homeowner Reward® (RH Reward®) program, which was named one of the “50 Best Inventions of 2010” by TIME Magazine. Learn more by contacting Frank Pallotta at Frank(at)LoanValueGroup(dot)com or visit

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Rosalia Scampoli
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