Loan Value Group, LLC Reports 2011 Year-end Results for Incentive-based Responsible Homeowner Reward® Program

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RH Reward addresses negative equity and reduces delinquency rates by 54% without the need for principal reduction

Loan Value Group

Loan Value Group

RH Reward aligns the interests of mortgage risk owners - including Government agencies and local municipalities - with the homeowner in ways that produce tangible benefits for both.

With more than two full years of performance results available, Loan Value Group, LLC (LVG) today announced that its Responsible Homeowner Reward® (RH Reward®) program, which provides cash awards to eligible homeowners who remain current on their mortgages, has reduced delinquency rates on 1st lien mortgages by 54%. Delinquency rates on 2nd lien mortgages – a source of even greater concern for banks – were reduced by nearly 24% over the same period.

RH Reward, launched in January 2010, is currently being used by major lenders, servicers, insurers and mortgage investors, and at present, affects mortgages with an aggregate balance of nearly $3 billion.

“RH Reward aligns the interests of mortgage risk owners - including Government agencies and local municipalities - with the homeowner in ways that produce tangible benefits for both,” said Frank Pallotta, Managing Partner of Loan Value Group. “In addition to reducing delinquency rates on 1st and 2nd lien mortgages however, RH Reward programs are being used to increase refinancing activity, accelerate loss mitigation efforts and launch new origination programs. Finally, risk owners are benefiting from enhanced contact information, behavioral insight and borrower connectivity.”

This is how the RH Reward Program works:
1. The homeowner is selected by their financial institution, enrolled in the RH Reward Program and granted an initial RH Reward amount.
2. The homeowner agrees to make full and timely mortgage payments in accordance with their mortgage note to keep their RH Reward status active.
3. For a period of time following enrollment, the RH Reward account will grow at a predetermined rate.
4. Once a milestone is met – for example, by selling the home, refinancing the property, or by paying off the mortgage – the homeowner is paid the entire RH Reward amount.

About Loan Value Group LLC
Founded in 2008, Loan Value Group LLC is a mortgage solutions provider of a large-scale, low-cost, turn-key platform that positively influences consumer behavior on behalf of residential mortgage owners and servicers. Based in Rumson, N.J., LVG provides owners of risk with a solution that directly addresses strategic default through the use of incentives. LVG is the exclusive provider of the Responsible Homeowner Reward® (RH Reward®) program, named one of the "50 Best Inventions of 2010" by Time Magazine.
Institutions can learn more by contacting Frank Pallotta or by visiting http://www.LoanValueGroup.com. Consumers can lean more by visiting http://www.RHReward.com.

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Rosalia Scampoli
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