Pegasystems Inc. (NASDAQ: PEGA), the leader in business..."/> Pegasystems Helps Mortgage Servicers Adapt to Changing Government Programs for Modifications, Short Sales, Foreclosures
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Pegasystems Helps Mortgage Servicers Adapt to Changing Government Programs for Modifications, Short Sales, Foreclosures

09/20/2010

Loan Loss Mitigation Solution Streamlines Complex Processes, Increases Agility and Productivity for Servicers; Pegasystems solution has helped manage nearly 20% of all HAMP volume



Pegasystems Inc. (NASDAQ: PEGA), the leader in business process management (BPM) and a leading provider of customer relationship management (CRM) solutions, today unveiled a new solution that enables mortgage servicers to address the urgent industry need to streamline loss mitigation operations, comply with increasing regulatory reform and government-sponsored programs such as Home Affordable Modification Program (HAMP).

ebizQ received the following:

The new Loan Loss Mitigation Solution leverages advanced BPM technology, successful client loan modification implementations and lending-specific case management capabilities to dramatically reduce servicers’ costs across a broad spectrum of loss mitigation programs; it is available immediately.

There are an estimated 7 million U.S. homeowners who are either behind in mortgage payments or in foreclosure. Attempting to stave off further home losses, several new government-sponsored programs are in place, such as Second Lien Modification Program (2MP) and the Home Affordable Foreclosure Alternatives Program (HAFA). Government officials have also reformed numerous programs. For example, HAMP has seen more than 20 changes since inception, and even more changes are expected in coming months. Every change means the servicer must update their systems and update their processes, policies and rules.

The Loan Loss Mitigation Solution, powered by Pegasystems’ Build for Change BPM technology, allows servicers to rapidly deploy and change their systems. This creates more transparency, accuracy and quicker processing capabilities across the spectrum of loss mitigation programs (i.e. modification, short sales, deeds-in-lieu of foreclosure and foreclosure).

Whether for government-sponsored or servicer-designed programs, the solution’s intelligent case management capability controls document and data management for end-to-end efficiency (all activities are controlled, tracked and viewed in a single case). At any given point, borrowers, financial counselors and loss mitigation specialists can see the status of a loss mitigation case with a single click.

Customers using the solution have already improved mitigation throughput by up to 150 percent. One top four mortgage servicer quickly deployed its solution in only 89 days. The same large-scale servicer has virtually eliminated errors and workarounds, and reduced training times by approximately 60 percent.

Highlights/Key Product Facts

The Loan Loss Mitigation Solution provides a myriad of features that dynamically support mortgage servicing requirements, such as:

  • Integrated document and data management – This capability guides knowledge workers through assigned tasks in working with documentation and data to keep them in sync. Tracking the receipt and verification of key documents while using service level agreements (SLAs) to automatically generate reminder correspondence with borrowers, or to prompt worker actions, allows the framework to improve productivity and eliminate errors.
  • Loss mitigation program configuration wizard – This enables business analysts to easily add and configure new programs directly into the application whether they’re government, investor or bank sponsored, and to rapidly modify eligibility rules for existing programs.
  • Simultaneously pursuing multiple loss mitigation programs – Multiple, distinct mitigation programs may be pursued for the borrower at the same time, with all programs tracked within the same parent “case,” allowing clients to manage mitigation holistically and minimize portfolio losses.
  • Pegasystems’ award-winning SmartBPM platform – Contains a number of world-class case management and intelligent process automation for end-to-end visibility, control and work automation such as robust work management, service level management, audit trails, guided end-user processing, automated correspondence, document management, and unified rules engine for decision support. Highly agile, business-friendly technology and design studio allows organizations to rapidly adapt to changing market conditions and regulations.

Supporting Quotes

Craig Focardi, senior research director, banking TowerGroup

“Servicers are at a crossroad when it comes to investing in loss mitigation software. TowerGroup believes that servicers need to leverage business process management technology with an integrated rules engine to speed up processing, strip out costs, reduce errors, and minimize losses in the end-to-end loss mitigation value chain.”

Tony Young, Principal – Financial Services Industry Solutions, Pegasystems

“The rules and regulations in the lending industry have changed, and will likely continue to change. Mortgage servicers need technology that allows them to quickly adapt to meet new and changing programs’ requirements, so that they can continue to deliver high-quality customer service while reducing operating costs and mitigating losses. Our market-leading BPM technology and Loan loss Mitigation Solution provide a compelling option for mortgage servicers to increase work automation, improve efficiency in their mortgage servicing operations and become better prepared for the next generation of loss mitigation programs.”

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