RUMSON, N.J.--(BUSINESS WIRE)--Loan Value Group LLC today announced that its Responsible Homeowner Reward program has been designated by Time magazine as one of The 50 Best Inventions of 2010. RH Reward, ranked 5th overall and the only financial product on Time’s list, was launched in January 2010.
Howard Hubler, Loan Value Group’s CEO and co-founder said, “It’s gratifying to our whole team that Time’s editors have selected the Responsible Homeowner Reward program as one of the 50 most innovative products of 2010. The RH Reward platform can quickly and efficiently align the interests of homeowners and lenders. Homeowners are incentivized to remain current on their mortgage payments, and their lenders reward them for doing it. Our platform now gives risk owners an easy way to connect to their customers with a positive message, without creating a further burden on their servicing operations.”
According to Time, the RH Reward program could dramatically reduce foreclosures by addressing the problem of strategic default, which accounts for as many as 30% of all home-loan defaults. There are approximately 13 million homes in the United States where the homeowner owes more on the mortgage than their home is worth.
Time comments, “Under LVG's patented Responsible Homeowner Reward (RHR) program, banks promise to pay borrowers who continue to pay on time a lump sum — typically 10% of their original loan amount — when they sell or refinance their home. Miss more than one payment and the reward disappears. It's still early (fewer than 5,000 people have been enrolled), but LVG says fewer than 10% of the borrowers in RHR have ended up defaulting, compared with a redefault rate of more than 20% for other loan-modification programs.”
About Loan Value Group LLC
Loan Value Group LLC, based in Rumson, NJ, is a solutions provider to owners of risk that directly addresses strategic default. LVG’s incentive-based solutions allow mortgage owners and servicers to positively influence consumers by rewarding timely mortgage payments. LVG is the exclusive provider of the Responsible Homeowner Reward ("RH Reward"). Institutions can learn more by contacting Frank Pallotta or visiting Loan Value Group. Consumers can learn more by visiting RHReward.com.