Pegasystems Announces Mortgage Industry Solution to Significantly Reduce Loan Workout Cycle Times and Provide Superior Customer Service

CAMBRIDGE, Mass. – March 18, 2009Pegasystems
(NASDAQ:PEGA), the leader in Business Process Management (BPM) software, today
announced its new BorrowerAssist™ solution to help mortgage lenders and
servicers quickly comply with rapidly-changing regulations put forth by new
government programs designed to solve the mortgage crisis. Using this
functionality, financial services organizations can service customers across
all channels and quickly determine the optimal loan workout strategy to
maximize customer satisfaction and returns.

The credit crisis, falling home prices, and
the worst job loss rate in 25 years have converged to create an avalanche of
troubled loans. New government programs designed to help up to nine million
homeowners avoid foreclosure, such as President Obama’s recently announced
“Homeowner Affordability and Stability Plan,” offer cost sharing and incentives
to mortgage lenders and servicers that modify loan terms to reduce homeowners’
monthly payments. But these programs have also created an unprecedented number
of loan workout requests that have flooded customer service channels, straining
lenders’ ability to service their customers effectively. 

“The rules
have changed. New government programs offer promise to
borrowers and provide incentives to lenders, but have created complex business
processing rules,” said Craig Focardi, senior
research director, Banking at TowerGroup. “Financial institutions
need technology that allows them to quickly adapt to meet the requirements of
these new government programs, while also continuing to deliver high-quality
customer service.  Agile BPM technology
provides a strong option for these institutions to meet the new regulations, as
well as prepare for future programs that may be enacted.”

Pegasystems’
BorrowerAssist integrates mortgage servicing workflows with a world class rules
engine to drive the end-to-end loan workout process,
and enables providers to continuously adjust to changing regulations and
evolving industry best practices. Using SmartBPM® with Pegasystems’
patented Build for Change® technology, BorrowerAssist significantly
reduces time-to-decision and drives up to 40 percent improvement in
productivity.

Key Capabilities

Pegasystems’ Build for Change technology
offers lenders and servicers the agility and scalability required to respond to
today’s challenges.  Capabilities
include:

  • End-to-end
    loan workout case management
  • Multi-channel
    borrower inquiry management
  • Multi-program
    workout qualification and decisioning
  • Operational
    transparency and workout activity reporting
  • Integration
    with and ability to leverage existing legacy systems

“Financial
institutions must respond to the flood of customer service requests in a short
period of time, and the ability to automate is a key factor in addressing this
surge in activity,” said Willy Fox, vice president, Industry Solutions,
Pegasystems. “Our powerful SmartBPM solutions empower
financial institutions to make better decisions, streamline processes, have
greater transparency in their case management procedures and realize greater
productivity, which is a powerful proposition to address such rapidly changing
programs.”

For
more information on BorrowerAssist, please visit: https://www.pega.com/link/loanworkout.

About Pegasystems

Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.

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The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.

 

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Lisa Pintchman Rogers
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[email protected]
+1 617-866-6022

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+1 617-528-5230

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Jon Brigden
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+44 (0) 118 9398 584

Pegasystems Inc.
One Rogers St.
Cambridge, MA 02142
U.S.A.
Phone +1 617-374-9600
Fax +1 617-374-9620