Optimize

LPS Applied Analytics delivers industry-dominant solutions and models for the secondary market that identify loan- and portfolio-level fordelinquency, default and loss propensities and then works with servicers to establish models to save loans — and keep borrowers in homes.

The models' combined use of loan, borrower, property and external data creates a uniquely powerful solution for the mortgage industry.

LPS Applied Analytics also offers sophisticated analytics tools that provide optimal loan modification recommendations at the loan level that also can be processed in bulk. At LPS, we believe to do less than optimal is to set up the borrower for re-default — to do more is to give away value.

LPS Applied Analytics’ OptiMod ensures your modified loans are successful. It determines the optimal parameters by applying LPS’ Default Model to existing loan characteristics and a wider range of modification options. Parameters that maximize future net present value (NPV) also minimize re-default rates.

LPS Applied Analytics research shows the key ingredient to successful modifications is payment reduction by reducing the borrower’s interest rate, extending the term and/or forgiving principal. OptiMod bases recommendations on years of experience modeling default risk for non-agency securities.