Loan Value Group named Craig Lipsay as managing partner. In his new role, Lipsay will work directly with institutional clients to implement Loan Value Group's Responsible Homeowner Reward, a program that offers cash payments to eligible homeowners affected by negative equity, but who remain current on their mortgages.
Lipsay has 19 years' experience in all mortgage products, in both residential and commercial, as well as all structured credit products. He was previously a co-head of the North American strategic solutions group at Merrill Lynch, and, earlier, was head of North American securitized product sales at Morgan Stanley.
"Craig's depth of experience in the mortgage industry makes him a valuable addition to the Loan Value Group team," the firm's CEO Howard Hubler said. "He understands the needs of mortgage risk owners, including servicers, and how they can deal with the widespread problem of potential strategic defaults in their portfolios. At the same time, Craig is well equipped to help as we scale up the RH Reward program on a national level."
"I am excited to join Loan Value Group at this pivotal point in its development," Lipsay said. "RH Reward is the only program in place today that can quickly and effectively address the needs of the millions of homeowners suffering from negative equity who want to stay in their homes and make responsible decisions. And, unlike other alternatives, RH Reward can be implemented by the owners of risk in a variable cost, turn-key fashion without burdening their current infrastructure."
Under the RH Reward program, borrowers are pre-selected by the owners of their mortgage, without cost to the borrower. The amount of individual Rewards is reliant on many factors, such as the size of the mortgage and its current loan-to-value ratio. Write-down of mortgage principal, with its possible consequences for the borrower's credit score, is not required. The whole enrollment process can take place in as little as 48 hours.