Just Price SolutionsTM, the nonprofit technology subsidiary of Neighborhood Housing Services of America, today announced a new process to determine workable loss mitigation solutions for borrowers, loan servicers and lenders – BestFITTM. The process automates situational analysis and gives financial counselors, loan servicers, and government stakeholders the tools to communicate via the Web and implement viable solutions for borrowers. It enables real-time collaboration between loan counselors and servicers to determine borrower capability to sustain a fixed-rate mortgage and identify alternatives to foreclosure.
The NHSA lending process involves pairing borrowers with nonprofit home ownership counselors. Counselors provide financial education and work directly with lenders and servicers on behalf of borrowers. With Just Price Solutions’ BestFIT technology, the counselor and loan servicer can determine the optimal solution choices given a borrower’s individual circumstances and loan terms. Using BestFIT, the counselor can validate the borrower’s true capacity to pay, accurately determine the value of the borrower’s property, and identify possible financing or refinancing solutions.

“BestFIT automates a successful mortgage process to create options for refinancing and provide low- and moderate-income borrowers with sustainable mortgage solutions,” explains Brian Cosgrove, president of Just Price Solutions. “By following this proven loan-origination process, lenders, counselors and borrowers can identify alternatives to
foreclosure that are safe and fair, and that best protect the interests of all parties involved in the current situation.”
NHSA funds and purchases loans made to low- and moderate-income borrowers, striving to promote neighborhood stability through homeownership. After recognizing the need to help many low- and moderate-income borrowers obtain access to safe and fairly priced credit, former Federal Reserve Governor Edward Gramlich enlisted NHSA to build an alternative to subprime. The resulting Just Price Solutions process and technology broadens the range of factors through which borrowers are evaluated. BestFIT automates this process, allowing lenders to identify good credit risks and qualify and approve first-time homebuyers and thin-credit borrowers. This customer-centric approach helps both borrowers and lenders protect their investments and provides a means to establish loss mitigation solutions should a borrower fall into default.
“The Just Price Solutions automated valuation tool incorporates the foreclosure market factors affecting the community,” said Michael W. van Zalingen, director of Home Ownership Services for Neighborhood Housing Services of Chicago. “This provides another valuable dimension, for servicers and investors, in determining the value of loss mitigation activity – (evaluating factors to) maximize recovery and minimize
loss.”
Cosgrove expanded upon the applications of Just Price Solutions’ process to aid home buyers, as well as its capability to expedite loss-mitigation solutions during a June 27, 2008 airing of “PBS NOW”, available for viewing by clicking here.