This program truly aligns the interests of lender and homeowner in ways that produce tangible benefits for both.
Rumson, NJ (PRWEB) March 20, 2012
Loan Value Group LLC (LVG) today announced that it has launched a new mortgage incentive program that rewards eligible homeowners with cash rewards for making periodic curtailments on their 2nd lien mortgages. The Mortgage Accelerated Payment Program (MAPP) builds on the success of LVG’s Responsible Homeowner Reward® (RH Reward®) program, which provides cash awards to eligible underwater homeowners who remain current on their mortgage. Under the MAPP program, the lending institution “matches” the borrower’s curtailment by building a rewards account in the name of the consumer that can be paid in cash or applied as a credit toward paying down the debt.
“MAPP, which can also be applied to 1st lien loans, incentivizes responsible homeowners to lower their debt burden by offering cash rewards for making incremental curtailments,” said Frank Pallotta, Managing Partner of Loan Value Group. “Rewarding the underwater homeowner for making payments above the minimum amount due is a win for the consumer and the loan owner.” He added, “The more you pay, the more you get back!”
LVG’s data shows that consumers respond very favorably to this new incentive strategy, with nearly a third of all enrollees taking advantage of the banks’ offering. Both the traditional RH Reward program and the new MAPP program reward responsible homeowners for maintaining consistent and timely payments despite extremely difficult economic times in the U.S. housing market. The ability to directly and positively engage the consumer to lower their outstanding mortgage balance at a very attractive price benefits all. MAPP participants currently receive matching rewards that range from 10% to 200% of their curtailed loan payment, depending on geography, LTV and loan purpose – among other things.
“This program truly aligns the interests of lender and homeowner in ways that produce tangible benefits for both,” Pallotta said.
About Loan Value Group LLC
Founded in 2008, Loan Value Group, LLC is a large scale, turn-key provider of residential mortgage incentive strategies that positively influence consumer payment behavior on behalf of residential mortgage risk owners and servicers to directly address strategic default. Based in Rumson, New Jersey, LVG is the creator and exclusive provider of the Responsible Homeowner Reward program, named one of the “50 Best Inventions of 2010” by TIME Magazine. For more information, visit http://www.loanvaluegroup.com or contact us at info(at)loanvaluegroup(dot)com.