Overture Technologies and SigniaDocs Join Forces to Transform Loss Mitigation

Combining sophisticated loan decisioning and electronic modification technology
speeds servicing of distressed mortgages, reduces repeat default rates, improves transparency

Overture Technologies, the leading provider of decisioning solutions for transparent, accurate and responsive lending processes, and SigniaDocs, a leader in eMortgage-based services for the mortgage industry, announced today the creation of a joint offering that combines Overture’s Mozart for Special Servicing with SigniaDocs’ electronic modification technology to transform loss mitigation services. Mozart for Special Servicing allows servicers to manage and successfully apply a more robust set of alternatives to borrowers in distressed mortgages, and more quickly yield a “best-fit” modification that can reduce repeat default rates and preserve the value of mortgage assets. SigniaDocs’ eMortgage technology enables the eDisclosure, eSigning and eVaulting of modification documents, both securing and speeding the resolutions recommended by Mozart for Special Servicing.

The demand for loan modifications is enormous. The Hope Now alliance, which is an alliance between counselors, mortgage market participants, and mortgage servicers to create a unified plan to reach and help as many homeowners as possible, reported one million loan modifications in 2008 and expects two million or more in 2009. Furthermore, Chase has implemented mass modifications on $1 trillion worth of loans it services for others and $22 billion of loans in its own portfolio1. If these transactions can be closed, a significant cost savings opportunity exists for both borrowers and investors. Closing them has been the hard part. After agreeing to loan modifications over the phone, many borrowers seem to lose hope in keeping their homes and choose not to sign documents when they arrive a day or two later. The joint effort between Overture Technologies and SigniaDocs is designed to both produce better modification agreements and provide immediacy to the process, while borrower interest is still high.

“With Mozart for Special Servicing, significant loan-level data and analysis, up-front and surgically applied, is required to manage the unprecedented volume of distressed mortgages, as well as the increasing complexities of products, programs, and regulatory guidelines in our 21st century mortgage industry,” says Linda Simmons, general manager of Overture’s Mortgage Finance Solutions. “Once a borrower and investor agree on the specifics of the modification, the borrower can immediately eSign the documents online in a secure environment, without any waiting. The process is completed very quickly, and we’re learning speed is critical to loan modification success.” After the eModification has been executed, it is electronically delivered to the investor’s custodian and filed in a secure eVault.

“One of the biggest problems servicers face is getting loan modification documents executed in a timely manner,” says Tim M. Anderson, SigniaDocs’ president. “We’ve found if the documents can be presented online within minutes, over half of the borrowers approve the modification the same day and nearly 80 percent do it within two days.” SigniaDocs’ eMortgage platform also “reps and warrants” the compliance of the eDisclosures and tracks all activities associated with their viewing, eSigning and eDelivery to SigniaDocs’ secure eVault environment, ensuring fast and efficient processing of any loan modification. “By raising the speed and ease with which documents can be presented and signed, lenders and servicers gain borrower commitment more quickly, making the loan modification process far more effective,” according to Anderson.

Mozart for Special Servicing leverages Overture’s award-winning automated decisioning technology, used in mortgage underwriting in a process called, “automated re-decisioning,” involves applying a sophisticated rules system to re-evaluate risk and the value of a loan at any point along the mortgage value chain. Mozart for Special Servicing offers the greater transparency required by investors, auditors and regulators, with English-language policies, complete history of information changes, decisions, and selected options. The software solution enhances and integrates with existing work flow systems, and is deployed as a software-as-a-service (SaaS). Mozart for Special Servicing is available now and can be configured, integrated and running in a matter of weeks.

About Overture Technologies

Founded in 2000, Overture Technologies is the leading provider of decisioning solutions that enable transparent, accurate and responsive lending processes for the mortgage and higher education lending industries. Overture’s customers are dedicated to providing superior mortgage underwriting, servicing and securitization services, and to increasing students’ access to higher education financing alternatives. Overture’s leadership team applies decades of experience from leading financial services and technology firms including Fannie Mae, Freddie Mac, Goldman Sachs, IBM and KPMG to help our customers achieve their goals. For further information, call (301) 492-2155 or visit www.overturecorp.com.

About SigniaDocs

SigniaDocs offers a full, legally compliant platform for automating paperless processes, supporting both paper and electronic document solutions with guaranteed compliance in all 50 states. The eMortgage platform is offered as a hosted web service in a secure SAS 70 environment and supports MISMO-compliant SMARTDoc®, UETA and ESIGN standards. SigniaDocs offers eMortgage services from eDisclosure, eClosing, eNotary and eVaulting, to MERS® eRegistry and electronic investor delivery. For more information, please visit www.SigniaDocs.com