Mortgage delinquencies are on the rise for numerous reasons......

• Sub-prime loan products
• Downturn in economy
• Increase in fraudulent information
• Aggressive mortgage programs, i.e., I/O ARMS, Negative amortizations, etc.
• Unqualified borrowers
• Flat to declining property values

“Reducing the rate of preventable foreclosures would promote economic stability for households, neighbourhoods and the nation as a whole.  Although lenders and servicers have scaled up their efforts and adopted a wider variety of loss mitigations techniques, more can and should be done.” (Federal Reserve Chairman Ben Bernanke, 03/04/08)

Proactive approaches to tackle the problems........

• Identify borrowers with a high risk of delinquency and/or default
• Contact borrowers to assess current financial situation to evaluate repayment abilities
• Assess whether default is reasonably foreseeable and evaluate, where appropriate, a loss mitigation strategy is available in lieu of foreclosure