Alltel Seeks to Demonstrate Returns from Default Technology
Victoria Yee, product manager in Alltel's default solutions division, believes that mortgage servicers can achieve financial benefits by employing technology to make default management more efficient.
But just as importantly, lenders can use the technology to help troubled borrowers stay in their homes and remain current on their loan.
"If they can do a deed in lieu or a workout plan or some kind of repayment plan, that is much more efficient than foreclosure," she said.
Measures such as incoming calls, talk time, delinquency rate and workout ratios can help a servicer see the benefits of default technology, she told MSN. Alltel, which recently announced that Fidelity National Financial has agreed to buy its mortgage unit, will be an exhibitor and participant at this year's MBA National Mortgage Servicing Conference.
Collection counselors are empowered by technology that gives them readily accessible information about a borrowers' credit history, propensity and promise to pay, and proper loan structuring alternatives while a loan is still current or in an early stage of delinquency. Access to this information facilitates successful workouts while helping collection agents avoid the time and expense of foreclosure and post-foreclosure proceedings, Ms. Yee said.
Technology, she said, is an "enabler." Resources such as Freddie Mac's EarlyResolution, London Bridge's Fortracs and MSTD's Back-In-The-Black help lenders evaluate a borrower's ability and willingness to reinstate a mortgage or complete a loss mitigation workout. Alltel integrates those systems with its Mortgage Servicing Package, in addition to offering some of its own default technology.
"We have actually done a very tight integration between our servicing system and Early Resolution and our working on a similar integration with the Back-In-The-Black product," Ms. Yee said.
Alltel's own technology includes MaxMilion Loss Mitigation, which is generally available, and MaxMilion Foreclosure, which is currently being tested. The loss mitigation component has built in scripts that ensure customer service representatives ask the right questions to pre-qualify the mortgagor for workout options. It also overlays rules from the mortgage insurance companies in the workout process.
These and other software options guide collection and loss mitigation counselors in their discussions with borrowers, allowing them to address possible options while taking into consideration investor guidelines and state laws. Collection counselors achieve productivity gains by handling more calls and workouts in less time with greater consistency and a shorter learning curve, Ms. Yee said. In addition, the loss mitigation systems are typically Web-based and are designed to increase efficiency and reduce investor or insurer guideline errors.
"As a call comes in and a counselor works with a consumer, they are getting real-time loss mitigation on their system in a matter of seconds," she said.
There are a variety of ways that a lender can connect with Alltel, including EDI, the Internet and a dedicated connection.
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