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LVG Press Release


Loan Value Group Data Shows 45% Lower Delinquency Rates for Homeowners with VA-Backed Mortgages Enrolled in the RH Reward® Program

Establishing ‘homeowner connectivity’ can greatly increase the likelihood of creating alternative refinancing and resolution options that meet borrowers’ financial needs 

Rumson, NJ, June 11, 2013 – Nearly two years after the special launch of a Responsible Homeowner Reward® (RH Reward®) program on loans specifically backed by the Department of Veterans Affairs, Loan Value Group’s proprietary data shows that the program has lowered late-stage delinquency rates (90+ days) by more than 45% compared to control groups.

The company also notes that in addition to lowering delinquency rates; Loan Value Group has assisted program participants by facilitating short sales and has helped others avoid falling into foreclosure or filing for bankruptcy protection. Additionally, the program has succeeded in dramatically increasing the number of VA Streamline refinancing opportunities for these borrowers. To date, the RH Reward program has provided assistance to nearly 10,000 veterans and serving military and their families who had taken out mortgages backed by the Department of Veterans Affairs.

“We are pleased with these results and the positive impact that the RH Reward has had on the brave men and women who serve our country,” said Frank Pallotta, Managing Partner of Loan Value Group. “The RH Reward program has dramatically enhanced the level of connectivity between homeowner and servicer, helping reduce the potential for mortgage default. This new borrower relationship also creates the opportunity for VA servicers to proactively manage the insurance shortfall risk that is a characteristic of underwater VA loans.”

Loan Value Group, together with a group of participating servicers, has successfully implemented this turn-key, private label program for eligible veterans and their families to stay current on their mortgage and to avoid default and foreclosure. Cash and non-cash incentives are provided for making timely mortgage payments, and for maintaining a dialogue with their servicer. Rewards can also be used to incentivize the homeowner to work with their servicer to seek other forms of relief including a streamline refinancing or, when necessary, short sales and deeds-in-lieu. The size and structure of the incentives can vary widely and is dependent on many factors. As a private-sector solution, RH Reward requires no government funding or taxpayer support. The program is fully administered by LVG and designed as a simple legal agreement between the servicer and the homeowner, resulting in an alignment of interests of all parties.

About Loan Value Group LLC

Founded in 2008, Loan Value Group, LLC is a large scale, turn-key provider of private label, residential mortgage incentive strategies that positively influence consumer payment behavior on behalf of residential mortgage risk owners and servicers. Based in Rumson, New Jersey, LVG is the creator and exclusive provider of the Responsible Homeowner Reward® program, named one of the "50 Best Inventions" by TIME Magazine.