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CREDIT MASTERS LFI ANALYTICS Present the

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CREDIT MASTERS LFI ANALYTICS Present the

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    1. CREDIT MASTERS & LFI ANALYTICS Present the

    2. “COMPREHENSIVE HOMEOWNER’S FINANCIAL RECOVERY PROGRAM” (CHFRP)

    3. THE PROBLEM Housing Crisis continues unabated. 6.4 million loans delinquent. 700 thousand homes in REO status Modifications under HAMP re-default at 60% rate. Homeowner debts outstrip capacity to repay

    4. Adverse Effects More Foreclosures coming Increasing Litigation Costs Lost Revenue Increased Loan Loss Reserve requirements Expanding REO Inventory Falling Home Values Depressed Housing Market continues

    5. Homeowner Desires Retain Home More affordable payment Principal Reduction not a requirement for most Reduce or eliminate other debt Financial Stability

    6. What is Needed A comprehensive program designed to meet the desires and wishes of homeowners while addressing the challenges, issues and problems for banks and investors.

    7. The Solution The “Comprehensive Homeowner Financial Recovery Program” (CHFRP) A comprehensive program that concurrently reduces the homeowner’s financial duress in all debt categories while leading to a greatly reduced Loan Default Risk.

    8. Program Objectives Reduce homeowner Revolving Debt to manageable levels through debt reduction agencies. Reduce or eliminate 2nd mortgage debt through loan modification techniques or debt negotiations Initiate trial 1st Mortgage Loan Modification with conversion to permanent upon successful negotiations of above Accomplish all phases in a coordinated effort

    9. Key Elements Unbiased analysis of original loan default risk including LDR Score Unbiased analysis of current financial situation including LDR Score Determination of likely outcome for 2nd & Revolving Debt outcomes, then 1st Mortgage Trial terms, based upon realistic Back End Debt Ratios, Residual Income Test, and LDR Score Permanent Mod offer based on debt resolution issues and LDR Score showing significantly lowered default risks.

    10. Lender Benefits Decreased litigation costs from lawsuits. Decreased losses from foreclosure. Loans return to performing status. Signification verifiable Default Risk reduction Better Portfolio Risk management.

    11. Lender Benefits Compliance with regulatory agency demands. Increased Public Relations “goodwill”. Improved Return on Investment. Increased stock prices and profitability Strengthens lender liquidity. Reduces losses to investors

    12. Homeowner Benefits Retains possession of home Reduced debt service for all types of debt Reduced risk of loan default Greater financial security

    13. LDR Score (Loan Default Risk) Default Risk measured through the LDR Score. Proprietary & patent pending algorithm using loan level data and borrower data. Quantitative scoring of default risk for easy evaluation of risk. Used to determine original risk, current risk, and risk after modification.

    14. Summary of CHFRP Benefits Keeps homeowners in homes and reduces foreclosures Lessens Default Risk Reduces Litigation Costs Lowers REO Inventory Lessens problems with Regulatory Agencies

    15. Summary Cont’ Lessens States involvement in foreclosure issues. Improved Earnings Mitigates losses Positive PR and Goodwill

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