Pam Marron Home Lending

Responsible Homeowner Reward (RH Reward)

 Benefit: A solution to stay… “If I stay current on my payment, the bank will return a portion of my lost equity.”

See Video:Mortgage Default Solution - RHR

Loan Value Group (LVG), a private New Jersey investment firm, came up with the Responsible Homeowner Reward (RHR) Program in 2010. This program works through banks and investors, giving back a small percentage of equity to underwater homeowners who continue to make their payments on time for the next 3 to 5 years.

Here’s how it works. Borrowers pay nothing. They sign up with the program, promising to keep current on their mortgages for a certain period, generally 36 to 60 months, worked out with the participating lender/investor.

After that period, the borrower can be paid as much as 30% of the loan principal, depending on the contract with their lender/investor. The lender/investor pays LVG a small administration fee, and the bank pays the borrowers. Again, the borrowers pay nothing for this equity bonus.

To date, 48 states have borrowers enrolled in the LVG program, totaling more than 20,000, according to LVG. The largest numbers of borrowers are from the hardest hit states, California, Florida, Arizona, Nevada and Michigan.

All of those states have achieved greater than 50% reduction in default rates versus respective control groups.

By targeting borrowers with the most negative equity and therefore at the greatest risk of strategic default, lenders and investors are cutting their losses by keeping the borrowers current. The lender/investor stands to lose more in a foreclosure.

Frank Pallotta, Managing Partner of Loan Value Group and developer of the Responsible Homeowner Reward (RHR)

Fact: It is proven that homeowners respond positively when given a promise of future help. 

Banks, are you listening?

There is not enough attention being paid to this idea that is less costly than the loss incurred when homeowners short sale or foreclose!

 

FAQ’s about RH Reward 

What is RH Reward?

Responsible Homeowner Reward (RH Reward) is a patent pending incentive rewards program which was launched in January 2010. Under the program, a per-determined amount of money will be awarded to homeowners who consistently make their future full and timely mortgage payments. In essence, it offers underwater homeowners equity back if they continue to pay their mortgage on time. Program terms vary.

What companies are currently using RH Rewards?

Arch Bay.

PMI homeowners whose loans are backed by both FNMA and Freddie Mac (Conventional mortgages).

GMAC Mortgage has reached out to homeowners (who are also vets) who have a loan backed by the Veterans Administration.

There are agreements in place with various other banks, servicers, hedge funds and mortgage insurers. However, they have not yet been public about their participation in the program. To be notified of new participants please subscribe to Pam’s newsletter to get updates.

How do I  get an RH Reward?

RH Reward is by invitation only. Homeowners are selected by their mortgage company, mortgage insurer, or the investors who own their mortgage. If you are selected, you will be notified by mail, email, and/or phone.

I have not been invited to participate in the RH Reward Program, what can I do?

RH Reward, a private investment program is available to participating banks and lenders and offers underwater homeowners equity back if they continue to pay their mortgage on time…. check out details about this innovative program at www.RHReward.com, and ask your bank to check into this opportunity!

RH Reward, a private investment program available to participating banks and lenders, offers underwater homeowners equity back if they continue to pay their mortgage on time…. check out details about this innovative program at www.RHReward.com, and ask your bank to check into this opportunity!

Banks and lenders can contact:  

 
Frank T. Pallotta 

Executive Vice President | Managing Partner

Phone: 732.741.7300 | Fax: 732.741.7399 | Mobile: 201.921.8384

47 West River Road | Suite C | Rumson, NJ 07760
email: Frank@LoanValueGroup.com                        website: www.LoanValueGroup.com