Credit Plus Moves into Loss Mitigation Space

Credit Plus Inc., a credit information services company here, is using its expertise in that field to open a new loss mitigation company, Mortgage Works.

The new company will provide lenders with tools to protect their loan portfolio by identifying borrowers who are at the most risk to go delinquent, explained David Wheeler, a regional account executive for Credit Plus in an interview which took place at the Regional Conference of Mortgage Bankers Associations in Atlantic City.

In a press release, Mortgage Works president Steve Grant said, "Loss mitigation is a real hot button in the industry today. Now more than ever, lenders need assistance in protecting their portfolios and recognizing signals before a loan goes into default so they can provide the borrower with solutions."

Mr. Wheeler said Mortgage Works uses a lot of different predictive elements tied to the loan, which are gathered from different sources.

It offers a full suite of loss mitigation products, including:

* Property valuation and borrower credit review to identify refinance opportunities and adjustable-rate mortgage replacement strategies.

* Detection of loans with highest risk level of default so lenders can proactively reach out to them prior to this occurring.

* Protecting a lender's portfolio value by monitoring its borrowers' behavioral changes on custom-time intervals.

* Monitoring key loan elements to determine when borrowers become a higher risk.

* It can customize reports and portfolio review based upon individual lender's needs.

Mr. Wheeler said different lenders have different needs and the Mortgage Works products are "robust enough to accept what ever those lenders' needs are."

At the time of the interview, Mortgage Works products were still in the beta testing process, but a full rollout is expected during the second quarter of this year.

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