Mortgage and real estate investor Arch Bay Capital LLC will begin testing Loan Value Group LLC's Responsible Homeowner Reward (RH Reward) program to lower delinquency rates and reward on-time payments among some homeowners in its mortgage portfolio.
The RH Reward program provides cash payments to eligible homeowners affected by negative equity who remain current on their mortgages. The amount of an individual reward depends on several factors, including the size of the mortgage and its current loan-to-value ratio.
‘RH Reward could be an important tool for Arch Bay as we strive to maximize returns for our investors,’ says Robert Mattesky, senior vice president of capital markets at Arch Bay Capital. ‘This new and innovative program will also allow us to provide homeowners the opportunity to be rewarded for remaining current, modifying or refinancing their mortgage.’