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USS Using Vendor to Handle Loan Mods

Pittsburgh-Urban Settlement Services has opted to replace its primary analytic and document solution to Mortgage Cadence, an origination technology vendor.

Urban Settlement, through its home retention work, processed over 600,000 loan workouts in 2008 and is projecting volume of 300,000 per month towards the latter half of 2009. The Mortgage Cadence product suite, consisting of Mortgage Cadence Orchestrator, Mortgage Cadence Harmony and Mortgage Cadence Finale, will work to allow Urban Settlement to bulk import upwards of 50,000 loans at a time, validate data, perform analytics and dynamically create and securely deliver the required loan modification documents for servicer approval and fulfillment.

In discussing why Urban chose Mortgage Cadence, James Smith, the president of Urban Settlement, said customer service was the biggest factor. "Both of our companies have a shared passion for customer service. As our volumes mounted in 2008, we came to the realization that in order to maintain this level of service we needed to make some strategic changes to how we do business, and in particular find a technology solution that could further automate our processes while delivering validation tools, analytics and document preparation and delivery services.

"The standard servicing systems store a lot of data, but do not have the ability to aggregate and review this data easily, nor do they have imperative loan data needed to run the proper validation and analytics required for loan modifications. Mortgage Cadence technology enables us to automate the modification of troubled mortgages rapidly and cost effectively. Mortgage Cadence is designed to analyze and assist companies such as Urban with achieving affordable and sustainable mortgage programs for borrowers."

The combination of Mortgage Cadence Orchestrator, Mortgage Cadence Harmony and Mortgage Cadence Finale will provide Urban Settlement with a rules-based enterprise lending system, Web portal and electronic document solution that leverages demand-driven workflow and automated decisioning enabling them to automate the modification of troubled mortgages.

Michael Detwiler, chief executive officer of Mortgage Cadence Inc., touts, "We're more than a loan origination platform. Servicing systems are antiquated and rigid. There are really only two systems out there and anyone you talk to will tell you those systems aren't that great, but those are the only two out there so they use them. The systems can't analyze data and do predictive modeling. They are very reactionary. Those servicing systems never even contemplated having to do loan modifications because there wasn't a need."

Going forward, Urban will do a bulk import of loans into Mortgage Cadence Orchestrator, which will have an Urban Settlement specific validation on all the loans. Next, custom analytics are run, based on tasks and parameters defined by Urban, to then slot the proper loans for modification. Orchestrator then exports all imperative information for servicer approval and Mortgage Cadence Finale generates the appropriate modification documents and delivers them securely to the servicer for fulfillment approval. Urban clients will access Mortgage Cadence Harmony for status, results, reporting and production documents.

"We ran loan modification documents through Mortgage Cadence Finale literally weeks after the proof of concept was delivered to us," added Mr. Smith. "We are continually molding the validation and analytical components of Mortgage Cadence Orchestrator, and to date have been incredibly happy with the performance of the solution."

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