Excerpt from: Overture News
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| January 09, 2009 | | Linda Simmons discusses Overture's re-decisioning philosophy regarding special servicing with leading online publication for mortgage asset managers. | Overture's special servicing solutions were recently profiled in a feature story, "Adapting Tech Solutions to Deal With Distressed Mortgages" by Jennifer Harmon, in Managing REO, a leading online publication for mortgage asset managers. In the article, Harmon interviews General Manager of Mortgage Finance, Linda Simmons, who explains Overture's philosophy of using automated decisioning technology throughout the mortgage value chain to help institutions make the best decisions possible at each step of the process, including special servicing.
Harmon notes that "the major impetus that drove Overture to create the
re-decisioning process is that the industry got very comfortable using
automated decisioning...to
do underwriting but never truly pushed the automated decisioning any
further down the mortgage value chain."
By bringing automated decisioning to special servicing, Overture can help lenders understand the borrower's specific situation in full detail and give them a wide breadth of options for a workout path for the mortgage. Rather than simply basing their decisions on basic information like DTI, loss mitigation reps will have access to a rich profile of borrower data from which to come up with the best solution for the servicer and the borrower, which will help reduce recidivism rates
As Simmons explains, "It allows us to take a couple of different approaches that the
industry is tinkering with. In some respects, people look at the
debt-to-income ratio and use that as a gauge for what the borrower
would be eligible for. From the subprime world, it's more likely to see
them calculate these hard and soft expenses. What do they have left
over at the end of the month? If they have $250 with six kids, you know
they are not going to make this program. It's not going to work for
them. The DTI doesn't necessarily tell you that."
To read the full article, click here to view it on the Managing REO website.
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