GMAC Mortgage, the origination and servicing arm of Ally Financial (GJM), will begin paying negative equity borrowers in the military to stay current on their mortgage and not strategically default. The Loan Value Group, a mortgage services firm based in New Jersey, launched its Responsible Homeowner Reward Program as a pilot in 28 states earlier this year. GMAC plans to offer a pilot of the program to 4,000 military borrowers and their families. While the mortgage can be underwater to qualify, it must also be current. GMAC and other servicers using the reward program could give a $25,000 incentive to the borrower if he or she remains current. Each month the borrower makes the payment, an additional reward is credited to the program account. When the loan is paid off, GMAC will cut a check to the borrower for the full balance. "We are pleased to offer this additional option for the men and woman who serve our country and who may have lost some value in their home due to the housing market disruption," said Steve Abreu, president of GMAC Mortgage. Loan Value Group extended $90 million in rewards through its pilots as of August. Frank Pallotta, managing partner, said the company is still looking to expand the program to other states. "We are delighted to be working with GMAC Mortgage and take great pride in providing ongoing RH Reward program support to our courageous service members," he said. Write to Jon Prior. Follow him on Twitter @JonAPrior.