October 09, 2009

CONTROLLING MORTGAGE DELINQUENCIES IN AN ECONOMIC DOWNTURN

Client #323 manages 80 billion in mortgage portfolios each year. PRS began working with the Mortgage Lender in November of 2007 to support their collection efforts due to the economic down turn. #323 faced an economic climate that hit the entire banking industry; The high rise of unemployment and the collapse of capital infrastructure. These conditions created a need for additional collection resources to aide #323’s in-house recovery efforts. Losses pertain to general servicing, short sales, deficiencies and widespread foreclosures.

PRS INSURED A POSITIVE CHANGE

It was the first time #323 used an outsourced collection service so they approached PRS with caution. There was a 6 month testing phase with careful approach to the specific guide lines for negotiation, customer sensitivity, understanding of the various state regulations and mortgage laws.

LONG-TERM SOLUTION & RESULTS

PRS was successful throughout the learning phase and #323 began consistent mortgage account placements. The average account balance was $90,000 and 12 months past due upon arrival at PRS. Prior to PRS, non-performing accounts were managed by letter campaigns, customer service calls and a legal process. PRS focused on each case file and applied specifics strategies to create workout plans. PRS negotiated a higher payout by using the specific line items from the HUD’s, BPO’s, buyers and sellers financial resources.  The results shown an increase of 3% in delinquent revenue from total dollars placed of $601,609,784,173.00. The breakdown of recoveries consisted of secured, unsecured, short sale, settlements and deficiency revenue.

39% OF CUSTOMERS RESOLVED AND RETURNED TO MORTGAGE LENDER

Between November 2007 and April 2008 PRS Returned 6,435 Customers
to Mortgage lender with a cure rate of 39%.

3% INCREASE IN REVENUE

Over 6 Months PRS help control #323’s losses and increase their revenue 3%.