Fiserv Inc., a provider of information technology services to the financial and insurance industries, has released preemptive mortgage default resources, including Predictive Risk Index Score Modeling (PRISM) and Home Retention Solutions. According to the company, these tools enable financial institutions to proactively identify and contact troubled borrowers with customized repayment solutions to try to keep them out of foreclosure.
The PRISM analysis can provide a glimpse into the extent of the damage the credit crisis is likely to inflict across a lender's mortgage loan portfolio. The analysis classifies at-risk assets into tiers, taking into consideration many data points, including the Fiserv Case-Shiller Home Price Index, loan servicing data, risk grade and credit, collateral and overall risk scores. Through this process, PRISM is able to identify risky accounts long before they become delinquent.
Once action plans are developed for the at-risk loans, financial institutions may choose to refer borrowers to a loan officer for refinance options or, in the case of a delinquency, to Fiserv Home Retention Solutions. Home Retention Solutions works one-on-one with borrowers to negotiate a repayment plan, forbearance or modification, Fiserv explains. In cases where it is not in the borrower's best interest to keep the home, Fiserv experts can take a deed in lieu of foreclosure or short sale.
If property ownership is transferred to the financial institution, Home Management Solutions maintains the property and manages the sale of the asset. Fiserv's real time, interactive dashboard keeps lenders aware of loan workouts and all loss mitigation activities.
Source: Fiserv
