Perhaps the most critical step in servicing a defaulted loan is the ability to mitigate loss by working with the borrower to determine if there is a desire to keep the property and an ability to do so. Rincon automates not only the loss mitigation determination phase, but also offers the most robust tracking of loss mitigation plans offered in the mortgage industry.

The Loss Mitigation Decision Model features a designed script to ensure that the loss mitigation specialist is asking the most appropriate questions in gathering critical information. During the course of the interview, it records a borrower’s financial information, including income, expenses, and assets, as well as interest and ability to make payments. The interview scripts within the Decision Model can be modified to address specific client needs.

Once the interview is completed, a financial workout matrix determines for the specialist the most appropriate resolutions. These resolutions are based on pre-defined guidelines, management standards, investor requirements, and borrower restrictions.

The Loss Mitigation module features comprehensive tools for the development of payment plans, loan modifications, short sales and other appropriate resolutions. These resolutions are highly flexible, customized payment plans designed to resume payments from the borrower. The Loss Mitigation module documents each plan in a letter to the borrower, and outlines the details of the mutually agreed upon plan. The program also documents the results of the processor-borrower interview for investor compliance. Once a payment plan is determined, the technology tracks incoming payments automatically, and sends an alert when a payment is missed.

The Loss Mitigation module documents the success or failure of payment plans, maintaining a history of each plan used and the eventual outcome.

Additional Capabilities

• Tracks disaster types and their eventual default effect.
• Creates an unlimited number of reinstatement quotes, and provides a history of each and a document for the borrower.
• Monitors a property listed for sale by the homeowner, to help determine if a short sale is an appropriate work-out method.
• Records the final financial result of a short sale or charge-off for 1099 reporting at year end.
• During the loss mitigation process, monitors the foreclosure sale date