CoreLogic (CLGX), which provides analytics and REO services, this week launched WillCap, a loss mitigation platform that predicts a distressed borrower’s willingness and ability to make mortgage payments. The software analyzes probable borrower payment behavior and recommends either a loan modification, short sale or REO transaction when strategic default is likely. Investors and mortgage servicers can use WillCap to make decisions on these options at both a singular-loan and portfolio level. CoreLogic used a behavioral technology that combines consumer credit, property information, loan product information and local real estate market profiles across its database of millions of borrowers. Developers reviewed 5m loans when developing the software, including 1.2m that had been modified, foreclosed or sold through a short sale. Several unnamed lending institutions already use the platform, according to CoreLogic. WillCap will recommend to users which loan treatment to make and provides optimal terms for each one. When recommending a loan modification, WillCap can specify the payment and principal amounts needed to keep the borrower current for set amount of time. When it makes an REO-sale recommendation, it gives a sale price most likely to move the property off the market at a specified time and maximize cash value. “WillCap brings objectivity, transparency and predictability to loss mitigation and default management,” said George Livermore, group executive for data and analytics at CoreLogic. “Servicers and investors can use this new solution to craft workable distressed loan treatments that can increase loan modification success, while significantly reducing losses.” Write to Jon Prior. Disclosure: the author holds no relevant investments.

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