IndyMac Now Among Lighthouse Clients
Lighthouse Real Estate Solutions has contracted with several new clients for its LINK Loss Mitigation services, including IndyMac Bank.
LINK stands for Loss Mitigation-Interface-No Contact-Knowledge.
Lighthouse COO Mike Sawdon said his company's services help lenders increase loss mitigation performance, improve delinquency ratios and reduce servicing costs.
"No contact and unresponsive borrowers always pose difficult servicing issues. We've been able to develop a process that makes it effective for servicers to outsource these files and let us work them on their behalf while achieving a higher-than-industry-average success rate," he said.
He said the company has succeeded in locating and contacting these borrowers 40% of the time, with 24% completing financial packages. No-contact borrowers are the ones most likely to cause problems for lenders. According to a Fannie Mae estimate, 47% of REO cases involve loans where the servicer at some point lost contact with the borrower.
Dan Mahler, president and CEO of Lighthouse, told MSN that most of the executives at Lighthouse have experience working in loan servicing and default management shops.
"We understand what they do because we have sat on their side of the desk," Mr. Mahler said. "We look at ourselves as partners to loan servicing companies, especially in the default area."
He said Lighthouse is developing a more sophisticated model of its technology that will connect directly with servicing bureaus to extract data.
Mr. Mahler said in addition to Lighthouse's consultative approach to the business, it offers a pricing advantage to users. Lighthouse only gets paid for cases where a financial package is completed.
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