Tuesday, February 3, 2009

Preemptive Loan Modification Pilot Successfully Mitigates Top 10 Residential Lender's Exposure to At-Risk Non-Delinquent Loans

Austin Logistics Incorporated, the leading provider of event-based analytic solutions, in conjunction with three partners, Convergys Corporation (NYSE: CVG), Bridgeforce Incorporated, and Collections Marketing Center, LLC ("CMC") today announced the success of their combined preemptive loan modification program for one of the nation's largest mortgage banks, one of the ten largest residential lenders in the U.S.

The program enables the bank to identify, contact, and treat "at-risk" but current first mortgage and home equity borrowers before they become delinquent. The four providers launched a production pilot of the loan modification program within 60 days of initiation.

"This program is a huge win for both parties to the current mortgage loan crisis, the lenders and their customers," says Tom Miller, Senior Vice President for Austin Logistics. "The lender can better protect asset quality and manage risk in residential real estate portfolios. Borrowers have a better chance of remaining in their homes and avoiding foreclosure. These are urgent matters for both parties, so we are pleased with our partnership's collective ability to seamlessly join our offerings and rapidly deliver this powerful program."

To date the bank has used the program to contact tens of thousands of at-risk but non-delinquent customers about modifying their loans. The process will continue until all customers eligible for assistance have been contacted. One of the earliest indicators of success was the surprisingly high number of customers who responded favorably to the outreach, willingly completing surveys to ensure their eligibility for loan modification.

"We were able to quickly identify highly skilled call center resources to reach out and qualify the bank's "at risk" customers. The qualification and conversion rates have exceeded the bank's expectations," says Joel Lewis, Convergys Vice President.

Another success indicator was the ability of the bank to dynamically adapt the customer analytics involved to ensure the most productive treatment for various categories of borrowers.

Brian Reiss, Managing Director - US Practice for Bridgeforce, said "The bank's satisfaction is three-fold. First, of course, is their unprecedented visibility into potential risk that might previously have blindsided them. But they also realized that this risk mitigation model has far-reaching applicability beyond the at-risk loans it was conceived for. By progressively adjusting the program's at-risk parameters, the bank could weigh their risk-mitigation objectives against their customer retention concerns, and they could develop a deeper understanding of which categories of loans could be profitably addressed and which could not - an important consideration because loan modification is a costly process."

"Finally," said Reiss, "The program gives the bank rapid access, through our partnership of four providers, to a variety of expert resources not typically available in today's resource-constrained environment. The program demanded that the rigorous design of the program, the fine-tuning of complex predictive analytics, the multi-channel contact software, and highly trained customer contact staff all be brought together seamlessly."

Austin Logistics provided the advanced analytics, Bridgeforce the consulting on process and policy, CMC the multi-channel contact and servicing technologies, and Convergys the customer management expertise and the specially trained staff to communicate with those customers.

The bank is currently expanding the program to additional areas.

About Austin Logistics

Austin Logistics provides event-based analytic decisioning applications that empower consumer financial services organizations to preemptively manage risk and improve profitability. Austin Logistics' solutions automate the fusion of transaction data with third party data sources to dynamically execute credit, fraud and collections policies that solve immediate business problems while easily adapting to future industry challenges. For over 16 years many of the world's most successful companies throughout North America, United Kingdom and the Asia Pacific region continue to choose Austin Logistics because its applications are proven to help businesses mitigate losses while delivering millions of dollars in bottom line benefit. For more information, visit www.AustinLogistics.com.

About Bridgeforce

Bridgeforce is a management consulting firm that specializes in strategy, operations, and technology consulting services for credit products. Bridgeforce operates in the credit card, retail banking, mortgage/home equity, auto lending, small business, and insurance sectors with clients that include 7 of the top 10 U.S. banks and 4 of the top 10 global banks. For more information, visit http://bridgeforce.com/.

About Collections Marketing Center

Collections Marketing Center (CMC) pioneered the industry's first fully integrated, multi-channel, adaptive collections service to maximize cost-performance. The FlexCollect platform combines advanced technology, a marketing focus and responsiveness to changing consumer behavior to optimize results for creditors in their credit risk and default management operations. CMC easily customizes applications to process many types of debt, including but not limited to credit cards, auto/RV loans, home equity loans, mortgages, healthcare receivables, telecom and utility bills. For more information, visit www.CollectionsMarketing.com.

About Convergys

Convergys Corporation is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers and employees. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.

For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to clients that now span more than 70 countries and 35 languages.

Convergys is a member of the S&P 500 and has been voted a Fortune Most Admired Company for eight consecutive years. We have approximately 75,000 employees in 83 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, and Asia, and our global headquarters in Cincinnati, Ohio. For more information, visit www.Convergys.com.

No comments: