Technology Can Make All The Difference

While servicers struggle to be successful with the Home Affordable Modification Program, there are those that say it's possible to do HAMP well, just not with traditional business practices. For example, Sterling Home Retention Services, a loss mitigation fulfillment firm, has released year-to-date results indicating success rates far above the industry average for HAMP. To date, Sterling has been successful in helping borrowers avoid foreclosure in almost 60% of its cases, as compared to the U.S. Treasury's reported industry average of 9%, according to figures released by the company. The company credits its innovative methods, highly-trained teams of specialists and its technology platform, TouchPoint - provided by its sister company, Sterling Technology Solutions - for its achievements with HAMP. The detailed metrics tell the story. One of the most difficult tasks in beginning the HAMP campaign, or any home retention effort, is finding the homeowner and making "right party contact", called "RPC" in the industry. Borrowers in default often ignore mailed offers or phone calls, believing their cases to be hopeless, and even move out of the home in anticipation of foreclosure. Through a multi-phased approach, Sterling Home Retention has created a methodology to far exceed the industry averages for right party contact using a combination of outsourced services, proprietary contact databases, and technology. As of September 2009, Sterling Home Retention has succeeded in making right party contact in 85% of its cases, over double the typical success rate.