LenderLive Teaming Up with PMI

LenderLive Network, a business process outsourcing and technology firm, and PMI Mortgage Insurance have formed a joint initiative to provide workout solutions to avert mortgage delinquencies and foreclosures.

"This relationship will create opportunities for more borrowers to stay in their homes," said Rick Seehausen, president and CEO of LenderLive. "We respect the role PMI has in the industry, and we believe this relationship will help each company provide the services their constituencies need."

Mr. Seehausen said LenderLive is building on an existing relationship with PMI. Like other mortgage insurers, he noted that PMI has loss exposure on its portfolio of guaranteed loans.

"Because they are in a position of loss exposure, they are also in a position to mitigate those losses," Mr. Seehausen told MSN.

In today's market, many servicers don't have an origination affiliate or find that their servicing operation is "disjointed" from the origination ARM, creating an opportunity for LenderLive to assist servicers in working to preserve homeownership through refinancing and loan workouts, he said.

"We will work with any customer regardless of their stage of delinquency. However we strongly believe in proactively reaching customers before they are past due or before they are severely past due," Mr. Seehausen said, noting that a borrower's options for preserving homeownership diminish as the loan becomes more severely past due.

LenderLive has a proprietary tool for matching potential borrowers with the loan products they are eligible to receive. The company has programmed into that loan production engine loan products and modification criteria designed to help preserve homeownership for borrowers that have run into trouble. Servicers can run the eligibility criteria in bulk for a portfolio.

Under the initiative, LenderLive will work with PMI and the servicers that manage loans insured by PMI to identify borrowers who are more likely to default on their mortgages and face foreclosure.

"It's easier to develop workout programs for borrowers who are in trouble if you can address the problems with their mortgages before they start to miss payments," said John Jelavich, PMI's vice president of homeownership preservation initiatives. He said PMI is committed to pursuing opportunities to prevent foreclosures through early intervention services such as LenderLive's EarlyAction program.

EarlyAction is a service in the company's specialty origination channel, providing counseling services to help with loss mitigation and portfolio retention. LenderLive's personnel contact targeted borrowers to determine the level of risk of prepayment or default, complete a full financial assessment and qualify homeowners into alternative loan products or loan modifications, as determined by the client. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/