LOS Helps With Loan Mods

LOS Xetus has added a new module to XetusOne, its Web-based loan management platform on the market today. The new features enable lenders to analyze risk and mitigate losses when making decisions on loan modifications and HELOC extensions. Lenders' need for these capabilities is urgent, as they experience an unprecedented number of loan modification requests from borrowers in need of payment relief. This growing trend is expected to persist for at least the next three to five years as depressed home values, high unemployment rates, and tightened credit conditions continue to linger.

According to estimates, more than $1 trillion of ARMs will reset from 2010 to 2012. Bank of America added 24,000 borrowers to its ranks of Home Affordable Mortgage Program loan modifications in April-a figure that doubled the company's previous all-time high from one month earlier. Scott Stein, Xetus' vice president of sales and marketing, said lenders need a solution that enables them to expeditiously handle the increase in loan modification activity. "With this new module...its expanded risk analysis features are unique because they give lenders the tools to efficiently restructure debt and modify loans-including standard modifications, HAMP and 2MP modifications, and HELOC extensions," he said. Moreover, because the new capabilities are available as a standalone application, any lender not already using XetusOne can utilize just this specific set of features on a per-loan pricing basis.

For standard modifications and HELOCs, XetusOne provides a recommendation on whether to pursue a modification or extend a line of credit beyond its maturity date. Lender-defined parameters trigger the modification process. Once initiated, XetusOne creates an electronic folder housing all related data and documentation, and then automatically assigns the file to a processor. For HAMP and 2MP loans, the platform further ensures compliance with all government requirements.