TheMReport

MReport Jan 2019

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50 | TH E M R EP O RT SERVICING THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T LOCAL EDITION SERVICING Embracing Fintech EQUATOR LAUNCHES MORTGAGE-SERVICING BLOCKCHAIN SOLUTION. CALIFORNIA // Equator, a California-headquartered Altisource business unit and a provider of residential loan default software and marketing solutions for many of the country's top servicers, real estate agents, and vendors, has announced an agreement with Factom, Inc. to integrate the Factom Harmony blockchain-as- a-service (BaaS) platform into the Equator PRO solution. Equator PRO is a software-as- a-service (SaaS) solution that helps servicers increase efficiency and vendor oversight across the default servicing process. Designed for all portfolio sizes, the Equator PRO product suite of loan management, loan modification, short sale/deed- in-lieu, foreclosure/bankruptcy, and real-estate-owned (REO) focused products, provides servicers with tools to help manage defaulted loans and REO and make more strategic and cost-efficient default servicing decisions. Factom's Harmony BaaS platform harnesses the power of blockchain to create an immutable record of activities, data, events, and decisions. Factom's blockchain solutions will provide a distrib- uted mechanism to preserve data, files, and digital records, making them verifiable and independently auditable. "Equator is committed to delivering technology that provides transparency and compliance throughout the default pro- cess," said Patrick G. McClain, SVP of Equator and Hubzu Auction Services for Altisource. "Incorporating Factom's blockchain tools will support our customers' compliance obligations. At Equator, we are regularly working to improve and advance our default servicing technology, and adding cutting-edge tools like Factom's Harmony is another example of our continued leadership." The addition of Factom's Harmony provides Equator customers the opportunity to incorporate the recordation of data, documents, and key audit events onto Factom's blockchain solu- tion. Factom's Harmony provides options for individual loans to be tracked as individual chains of data on the blockchain. This design allows Equator PRO customers the opportunity to embed blockchain preservation into their various workflows, allowing for an im- mutable and encrypted blockchain audit record to be built for each loan and each workflow step. "At Factom, we know a practi- cal blockchain solution is needed to specifically deal with complex business data and documents," said Laurie Pyle, COO of Factom. "We look forward to working with Equator, who shares the vision of using blockchain technology to bring transparency and efficiency to the default servicing process." Equator PRO with Harmony offers a blockchain technology solution to help address the com- plexities of the default mortgage process. The combination of Equator's powerful workflow technology and Factom's block- chain offers default mortgage participants the opportunity for enhanced tracking, manage- ment, and collaboration within the default servicing process. In this model, each party retains their documents, files, and data securely within their data centers while providing confidence in the integrity of the information being shared and accessed. Keeping Homeowners From Foreclosure AHP SERVICING UNVEILS $50 MILLION REGULATION A OFFERING TO RESTRUCTURE PAST-DUE LOANS. ILLINOIS // AHP Servicing, a Chicago-based specialty servicer of past-due residential mortgages, announced it had launched a new $50 million Regulation A (Reg A) offering to foster its mission of helping homeowners keep their homes out of foreclosure. AHP Servicing uses crowd- sourced funds to purchase past-due loans at a discount, working with financial institutions to purchase loans that have fallen behind in payments but have the potential to be restructured or settled. It then works with homeowners to stay in their homes or resolve their debt at a discount. "With this offering, AHP Servicing empowers socially responsible investors to help financially strapped borrowers and homeowners retain their properties while offering investors a competi- tive preferred rate of return," said DeAnn O'Donovan, President and CEO of AHP Servicing. "We're flipping the switch on the tradition- al loan servicing model so that ROI is judged not just by dollars, but also by sense. We create a purpose in addition to creating a profit." AHP Servicing's sister com- pany, American Homeowner Preservation (AHP), was the na- tion's first crowdfunded distressed mortgage offering. It has a 10-year success story of socially responsible investing and keeping financially distressed homeowners in their homes. AHP Servicing combines all necessary functions in the mortgage servicing process brought together under one roof, under stricter controls. AHP Servicing's Reg A Offering accepts investments of as little as $100. The offering returns up to 10 percent annually distributed in monthly dividend payments to investors, provided that the investment stays within the offer- ing for at least two years. If funds are withdrawn earlier than two years, returns will be lower. AHP Servicing endeavors to return the principal investment within five years of the investment. To date, AHP's previous offerings have not missed a monthly distribution. Returns are not guaranteed. "Our offering diversifies investor returns into an asset class that is not correlated to the stock market," O'Donovan noted. "What's more, our offering is available to both ac- credited and non-accredited inves- tors. We offer best efforts liquidity and seek to deliver monthly dis- tributions with annual preferred returns up to 10 percent." O'Donovan noted that AHP Servicing is actively seeking so- cially responsible investors who are looking for investments that make

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