IBM To Launch HAMP Mod Software in 2010

In January 2010, the global IT services giant IBM (IBM) plans to launch a new loan modification software package that will give borrowers more on-hands control of their mortgage modifications. On display at the Loan Modification Conference this week in Dallas, Texas, the interface provides borrower outreach, loan modification fulfillment and post-modification surveillance for mortgage servicers. Mark Young, a vice president at IBM, told HousingWire that one major servicer is lined up for the launch in January, and a trial period is currently underway. “Borrowers can enter their information on the system and, essentially, modify their own loan,” Young said. The package can perform mail-, phone- and Web-based outreach campaigns to targeted borrowers based on the servicer’s specific criteria. It also determines borrower eligibility for the Home Affordable Modification Program (HAMP), through which the US Treasury Department allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. The system generates required documentation for trial and final modifications, and it performs verification of income, occupancy and other HAMP factors. It also performs call campaigns to borrowers during the three-month trial period to assess the borrower’s situation and stress the importance of continuing to make payments. “I can’t say who the servicer is right now for the January release, and it’s too early to give a success rate,” Young said. IBM jumped into the mortgage industry in October with the acquisition of Wilshire Credit Corp. from Bank of America (BAC). Wilshire currently participates in HAMP, with a potential allocated cap of $203m. Write to Jon Prior.

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