GE Puts Loan Workout Optimizer On Its Servicing Website.(GE Capital Mortgage Services Inc.)(Brief Article)

GE Mortgage Insurance has launched its first online workout approval system, e-LMO Fast Track.

It will incorporate the company's loss mitigation optimizer technology into its MI Servicer platform which was launched in February.

GE predicts that e-LMO will "expedite workout approvals for servicers and investors."

Marquita Webb, the interim manager of GE's national loan workout center, referring to e-LMO, said, "We have scaled down some of the logic for the loss mitigation optimizer, leaving in the critical data fields that we need in order to receive and approve a workout recommendation. The servicer submits a recommendation over the Web and gets an immediate response."

GE claims that since the loss mitigation optimizer was developed five years ago, "the company's cure ratio has risen from 40% to 78%, buoyed in part by the strong economy."

Among the loss mitigation strategies that GE approves are repayment plans, modification plans and "pre-claim advances," where GE advances funds to the borrower to get their loan current. The borrower must then repay GE the funds in the form of a non-interest bearing promissory note.

If borrowers "can't afford the property, then we work with them to get out of a foreclosure by helping them sell their house and real estate," qualifying that "we try to minimize the impact of desperate treatment, and this automated tool helps us look at the borrowers in an objective rather than subjective manner," said Ms. Webb. e-LMO can provide "an approval in a matter of minutes over the Internet. Previously, it would have taken at least two to three weeks to get an approval and required a package consisting of at least seven to 10 pieces of documentation to be sent to us," she said. The ...