System and method for optimizing loan modifications

摘要

A computer system for managing defaults that includes a loan investor platform associated with a loan servicer platform. The loan investor platform provides a loss mitigation workout type decision engine that receives from the loan servicer platform a first set of data associated with a loan loss mitigation case, determines an optimum loan workout for the loss mitigation case based on borrower criteria, prequalifies the loan for the optimum loan workout based on at least one investor set business rule and the first set of data, and communicates the loan workout that the loan is prequalified for to the at least one other computing device.

主权项

1. A computer-implemented data processing system, the system comprising:
memory configured to store program logic; and, a processor, wherein the processor, upon execution of the program logic, is configured to: receive loss mitigation data pertaining to a loss mitigation case; generate loan workout scenarios for the loss mitigation case, wherein each loan workout scenario represents one of a plurality of modified loan options that differ from each other by one or more of rate, term, forbearance, rate step, or principal forgiveness; and adjust a configurable tradeoff factor and a configurable business rule, the configurable tradeoff factor defining a relationship between a net present value of a cash flow from the modified loan options and a redefault rate of the modified loan options such that a constraint is provided on how much the net present value of the cash flow can be decreased in order to achieve a reduction in the redefault rate; and identify an optimum loan workout scenario based on an objective function determined by the configurable tradeoff factor and configurable business rule.