Enables Mortgage Servicers to Minimize Default Rates and Achieve Lowest Foreclosure Process Cost

Tavant Technologies Inc., a rapidly growing IT services company focusing on the development of mission- critical software applications, today announced the immediate availability of its unique default management capabilities that enable mortgage servicers to achieve lower delinquency and default rates. These capabilities are comprised of a set of frameworks and components for speedy deployment that leverage Tavant’s extensive experience in the development and implementation of Mortgage Servicing applications, specifically in default management.

Tavant’s Default Management frameworks and capabilities enable it to work with servicers in the development of systems that can enhance the default process in two critical ways: 1) provide agents with workout plans in real time that will help return more borrowers to performance and 2) improve productivity and minimize the costs involved in managing various aspects of default such as Loss Mitigation, Foreclosure and Real Estate Owned (REO). It is estimated that the loss severity for REO properties can be as high as 35%, even more in some cases. Even with average default rates of 4-5%, the losses can mount up fast. GMAC-RFC (Residential Funding Corporation), America’s largest private issuer of mortgage-backed securities and a leading warehouse lender, estimates that it loses over $50,000 per foreclosed home. Tavant can help servicers achieve better productivity and higher gains through its extensive capability in technology-based business processing re-engineering.

Tavant’s expertise with building a comprehensive suite of workout plans for loss mitigation enables servicers to improve loan performance. A robust Foreclosure timeline and case management system, and a state-of-the-art REO solution can also help convert illiquid assets into cash in the shortest possible time frame. Additionally, Tavant has built other components to manage property services (inspection, valuation, preservation and code violation), credit services, document services (generation, storage and delivery), and other value-added services that make your default management system portfolio complete.

“Lenders have introduced innovative products like interest-only and option ARMs in recent times. Ultimately as the interest rate creeps up and home values stagnate, it will be these loans that will create default management problems,” said Sarvesh Mahesh, CEO of Tavant. “To stay ahead of this emerging problem, servicers must fix the gaps in their existing servicing platforms. Tavant’s capabilities in default management fill the technology void in the servicing landscape by enabling mortgage companies to fully automate their complex servicing processes and mitigate default risks.”

For one major servicer, Tavant created the mortgage industry’s most robust and scalable intelligent system, comprised of all the key pieces such as Loss Mitigation, Foreclose and Bankruptcy, REO and other shared services. As a result of implementing Tavant’s Default Management capabilities, the servicer saw its quality rating improve as Moody’s Investor Service credited the company’s ability to prevent or mitigate losses “across changing markets.” Moody’s said that the lender’s loss mitigation abilities were above average. Moreover, they noted that the servicer’s REO was liquidated in an average of 141 days, which, excluding redemption, is “one of the shortest liquidation periods Moody’s has observed.”

Backed by the industry’s largest pool of talented engineers in mortgage solutions, Tavant’s Default Management capabilities are a series of modules and frameworks that can be rapidly deployed to develop applications that allow servicers to better manage their default portfolios:

* Loss Mitigation — a wide portfolio of retention and disposition
workouts scenarios including Reinstatements, Repayment Plans, Loan Mods,
Full Payoffs, Short Sales/Payoffs, Deed-in-Lieu, Note Sales and Charge
Offs as well as special requirements such as managing disaster
moratoriums and Soldiers & Sailors.
* Foreclosure and Bankruptcy — configurable and timeline management tools
to organize foreclosure and bankruptcy tasks and schedules on a
template-based fashion.
* Real Estate Owned (REO) — encompasses Occupancy Information Status
(OIS), listing price valuation tool, Marketing Plan, Evictions,
Redemptions, Listing Agreement, Offer Management, and Fund
Reconciliation.
* Service Components — a framework to manage property services, credit
services, document services, vendor services and other value-added
services.

“Tavant’s Default Management capabilities are flexible so that servicers can partner with Tavant to develop and implement default components and modules either one-at-a-time or as a comprehensive end-to-end suite,” said Christoph Knoess, VP of Mortgage Solutions of Tavant. “Our staff of 1,000 business consultants, analysts and engineers is focused on improving lending business processes through the use of technology, and we have 300 associates working on servicing and default management projects. This means that servicers can leverage the industry’s most robust, scalable Default Management capabilities for increased productivity and reduction in human error.”

About Tavant

Tavant Technologies Inc. (www.tavant.com/lending) is a 1200+ strong IT services company focusing on the development of mission-critical software applications, offered through a global delivery process. Tavant creates game changing results for its clients through the automation of complex, enterprise-wide, multi-stakeholder business processes. Tavant also offers a full range of services across the entire software application lifecycle including application maintenance and enhancement, hosting, remote monitoring, testing and performance optimization.

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Source: Tavant Technologies Inc.