CHALLENGE: Since the beginning of 2008, over 400,000 modifications have taken place in the US. However, most borrowers, investors and the US government expect more to be done. Complicating the matter further, modifications are re-defaulting at an alarming rate emboldening critics of the various initiatives.

SOLUTION: After performing forensic analysis on re-defaulted modified loans, it was clear the servicer needed to enhance its verification of borrower’s income, assets, and occupancy to better assess the borrower’s willingness and ability to pay. After careful analysis of the servicers’ operational processes, Digital Risk designed, implemented and delivers a comprehensive verification solution specifically tailored to income, asset and occupancy verification. Digital Risk’s software engineers integrated its RiskIQ platform to the servicers’ document and loss mitigation systems creating a low touch efficient solution. All the while, Digital Risk’s web based reporting and regular status calls provides the client with complete transparency into the program.

RESULT: The servicer is posting month-over-month increases in modifications completed and a similar month-over-month decline in re-default rates particularly impressive in a recessionary environment.

SOLUTION: Quality Control

ANALYTICAL TOOL: Risk IQ

EXPERT SERVICES: Forensic Analysis, Fraud Detection and Prevention, Operational Risk Reviews Income, Asset & Occupancy Verification