New Tool Screens Consumer Debt Portfolio Risk.

Palo Alto, CA -- Financial Crossing Inc. has launched Liability Health Check, a new tool that offers customized financial risk advice based on sophisticated analyzes of mortgage and liability data.

Since adjustable-rate loans became so popular in the 1990s, there still is an information gap related to ARMs. Clients felt that financial institutions and advisors could help with assets in a very comprehensive way, but when it came to liabilities, nothing was there, they were just telling you the rates, Adrian Nazari, president and CEO of Financial Crossing, told MSN.

Financial Crossing was built to bring some efficiency in matching clients with debt products, credit products that meet their financial goals similarly to the assistance they receive in the asset building area. As products started proliferating, new layers of long-term risk have been added to an increasingly complicated mortgage marketplace, so LHC was created to help consumers understand their mortgage, home equity and other debts, ARM rate changes, or debt workout options that fit their specific situation and risk level.

It identifies areas that can be improved, new options to be implemented and most importantly a consultative, multiple option solution customized to clients specific needs. LHC also aims to improve the quality of loan transactions and proactively help ARM and option ARM customers improve their debt structure before interest rate resets and/or negative amortization.

It provides three layers of analytics of liability information, the executive said, including risk profile and risk adversity potential, intelligence on product data that allows for an apples-to-apples comparison, and debt consolidation options that are generated from up to 5,000 possible case scenarios before it determines for what a customer qualifies.

We do not give you just a loan, we give you a plan like a financial plan, he said, based on customer suitability relative to risk, benefit, potential payment changes and so on.

LHC allows lender users an analytical view of liabilities, including mortgages, credit card debt and other consumer loans and, most importantly, determines if there is a risk in suitability of the loans or an opportunity for improvement, the company said, and then provides actionable advice on how to reduce monthly debt payments by rearranging and reallocating debt and ensuring the client has the most competitive loan products.