'RediMod' Retools Cross-Sell Technology.(Special Report)

Byline: Ted Cornwell

Jacksonville, FL-Lender Processing Services, which owns the widely used Mortgage Servicing Package for automation of loan administration, has unveiled a new service to facilitate mass loan modification programs.

RediMod, as it is called by the company, capitalizes on LPS technology designed to support cross-sell initiatives to assess loans at risk of default and design appropriate workout solutions.

LPS says RediMod automates loan eligibility and optimization determinations for loan modifications. LPS offers the program as a "cafeteria style" slate of options, so that mortgage servicers can use all or part of the service. That way servicers with partial workout systems in place can choose to add capabilities from the modular technology.

RediMod is also coordinated with customer contact strategies, including call center partners and other channels. LPS says that the system allows servicers on MSP to assist at-risk borrowers without replacing or upgrading their technology. RediMod assigns each loan in a portfolio a default propensity and loss severity score. Loans that are identified as delinquent or at risk of default then are run through a process that identifies the best workout option based on options set by the servicer or investor, such as loan type and net present value. LPS then creates the appropriate loan modification package, either in paper or electronic document fashion, and delivers it to the borrower. Through strategic partnerships with call center providers ...