CSC to Expand Early Resolution's Default Functionality

Computer Sciences Corp. said it will enhance its EarlyResolution default management utility by automating more of the manual processes inherent in collections, loss-mitigation, foreclosure and bankruptcy proceedings.

EarlyResolution was created in 2000 by Freddie Mac in collaboration with Revolent Technologies and a consortium of banks to help mortgage servicers better manage loan default management. In addition to reducing costs, the technology aims to help servicers keep more borrowers in their homes, according to CSC, which has owned and operated the technology since 2003.

CSC says that five of the nation's 10 largest mortgage lenders currently use the technology, and lenders were instrumental in developing the enhancements that will be implemented next year.

CSC worked with DST Technologies, a subsidiary of DST Systems, to develop the upcoming 2005 release of EarlyResolution, which is designed to offer mortgage servicers enhanced default processing functionality including third-party integration, document management, automated processes, performance management and reporting, business-rules-driven functionality and workflow-driven processes.

EarlyResolution is available in an application service-provider environment, which allows continuous enhancement of the application and provides a platform for quick rollout of improvements, according to Jamie Jackson, a partner with CSC's consulting group and leader of its EarlyResolution group.

Mr. Jackson said the current version of EarlyResolution allows collections staff to look at options for avoiding foreclosure, such as loan workouts and repayment plans. The 2005 release will add automation of the fulfillment of those workout, repayment or reinstatement plans as much as possible, he said. That will help servicers reduce the cost associated with what are today largely manual processes, he added.

"We have been adding functionality, working with the industry, and now was the logical time to take the next step and move toward loss mitigation fulfillment," Mr. Jackson told MSN recently. He said EarlyResolution is built to allow "a tremendous amount of management control" so that lenders can adapt it to suit their own rules and procedures. The enhanced version will add additional workflow for servicers that can be adapted to suit their procedures, he said.

EarlyResolution is integrated with default management systems provided by Fidelity and First American, he said. It is also integrated with Fidelity's mortgage servicing package and is being integrated into the Fiserv mortgage servicing system as well. Additional integration with mortgage servicing automation and default management systems is in discussions, Mr. Jackson said.

Lenders can access the EarlyResolution application in a number of ways, including through a dedicated line or through Freddie Mac's GoldWorks network. It also can be accessed through the Internet, though no users are using direct Internet access today, he said. CSC said the 2005 release of EarlyResolution, which will happen in two stages, is designed to provide end-to-end workflow for all solutions, enhancing servicers' ability to resolve delinquency issues and retain mortgages.

EarlyResolution's 2005 releases will also offer optional features for servicers to scan documents, save voice conversations, outsource imaging capabilities and mail room functions, interface to in-house imaging systems, store documents, and obtain additional business process re-engineering and organizational change support, CSC said.

Subsequent releases are expected to enable mortgage servicers to configure their own loss-mitigation fulfillment workflow by combining loan attributes and to incorporate management control and maintenance capability. With about 90,000 employees, CSC provides systems design and integration, IT and business process outsourcing, applications software development, Web and application hosting, and management consulting.

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