Pam Marron Home Lending

Loan Value Group Already Helping States With Underwater Property Values!

May 21, 2011 by · 1 Comment 

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Florida Needs This Program NOW!

A group in New Jersey called Loan Value Group LLC (LVG) is currently working with a number of States including the State of Arizona ( to help promote the benefits of a HARP. Since 2009, LVG’s primary role has been to contact, educate, and convert borrowers who need financial assistance with their mortgage obligations (1st or 2nd). They have helped many financial institutions promote for example: refinances, modifications, curtailments and cures. Clients include (in addition to Arizona), GMAC Mortgage, Radian Mortgage Insurance, Ocwen Financial, Ally Financial, PMI, and many others.

 HARP is a well-intentioned program, and one of the very few that are designed to help ALL constituents in a mortgage transaction (the consumer, the tax payer, the Federal Government, as well as state and local municipalities). Unfortunately, borrowers who need the most help (those with high Loan to Value ratios) are being left to fend for themselves because they are not being solicited by their current servicer. LVG has determined that the primary reasons these borrowers are being left behind (approximately 90% of all completed HARP’s to date are for loans whose LTV is less than 105%) is:

1)      Lenders are almost exclusively targeting lower LTV consumers over high LTV consumers

2)      Consumers are being told by their “current lender” that they do not qualify for a HARP, when in fact they do. This is a direct result of that lender’s decision to use more restrictive guidelines than the HARP guidelines call for.

 Borrowers however, continue to remain free to seek a HARP with any lender willing to refinance their loan. Unfortunately many borrowers lack the ability to navigate this very complicated process, which has caused most to simply give up.  What’s most depressing is the high number of borrowers who actually qualify for a HARP, but “give up” when their lender denies them. The consumers are seeking help, but the existing construct is designed to drive the borrower back to the servicer who is either not ready, or not willing to help them.

 LVG was hired by the State of Arizona to begin a targeted marketing campaign to contact, and educate a consumer as to the benefits of a HARP. If the borrower truly qualifies for a HARP (regardless of what their current lender is telling them), LVG is seamlessly able to “warm transfer” that consumer to a “State Approved Lender” whose only job is to refinance the consumer under the terms of a HARP.  This may sound simple, but the “hand-off” of an eager refinance candidate to a willing lender does not exist today in scale.  LVG is the only company offering this service free of charge to the borrower AND the state.  To date, LVG has achieved 80% contact rates, and greater than 90% conversion rates. Finally, LVG typically requires less than 60 days to launch a program enabling the State to provide borrower assistance as quickly as possible.