With news from Fiserv and M&I Bank
Fiserv’s new software identifies possible foreclosure candidates
Brookfield-based Fiserv Inc. recently released preemptive mortgage default resources that enable financial institutions to proactively identify and contact troubled borrowers with customized repayment solutions to try to keep them out of foreclosure. The new services include Predictive Risk Index Score Modeling (PRISM) and Home Retention Solutions. According to the Mortgage Bankers Association (MBA), the rate of foreclosure starts and the percent of loans in the process of foreclosure are the highest recorded since 1979. The number of homes in the foreclosure process or delinquent on payments is 8.82 percent (6.35 percent past due but not in foreclosure, plus 2.47 percent in foreclosure).
When faced with mortgage delinquency, due to high debt-to-income ratios, minimum payment resets on adjustable rate mortgages, rising living expenses or job losses, many borrowers fail to contact their financial institutions. Borrowers often avoid discussions with their mortgage lenders until after they have missed several payments, a situation that increases the possibility of foreclosure. Fiserv PRISM and Home Retention Solutions focus on helping financial institutions forecast delinquencies before defaults occur and provide expanded customer care to proactively offer refinancing and negotiate workable resolutions.
"The ability to identify, monitor and create solutions for at-risk borrowers is critically important to financial institutions," said James Smith, executive vice president of portfolio services for Fiserv. "It is not economically beneficial to lenders or borrowers to have mortgage loans enter into foreclosure. By using Fiserv PRISM and Home Retention Solutions, financial institutions are better positioned to assess portfolio risk, cure delinquencies and serve their borrowers. We believe that in this difficult market, financial institutions that invest carefully in technology such as PRISM and Home Retention Solutions will become more efficient and responsive to customer needs, with the potential to excel as market leaders when the current downturn starts to improve."
The surge in delinquencies strains the resources of financial institutions that are already experiencing lower production volumes and tighter operating margins. By outsourcing loan analysis and customer contact to Fiserv, financial institutions can meet the needs of challenged borrowers without having to purchase and deploy analytic software or employ mortgage default experts, Smith said.
The PRISM analysis can provide a glimpse into the extent of the damage the credit crisis is likely to inflict across a lender’s mortgage loan portfolio. If property ownership is transferred to the financial institution, Home Management Solutions maintains the property and manages the sale of the asset. Fiserv’s real-time, interactive dashboard keeps lenders aware of loan workouts and all loss mitigation activities.
M&I Bank to provide flooding financial assistance
M&I Bank will provide several forms of financial assistance to people affected by the record rainfall and flooding in Wisconsin, including up to two deferred payments on installment loans such as auto loans, home improvement loans, leases, and credit cards. For both new and existing customers, preferred pricing will be available on various loan products for those who qualify. All closing costs will be waived.
"So many families have financial concerns as a result of these oppressive flooding conditions," said Tom O’Neill, senior vice president, Marshall & Ilsley Corp., the Milwaukee-based parent company of M&I Bank. "Our goal is to do what we can to help them get through this difficult time." For payment arrangements on existing loans, call M&I Bank at 1-888-600-9327, and ask for the Flood Relief Program. For new loan inquiries, call M&I Direct at 1-800-642-2657.