Triage of Rapid Response Loss Mitigation During the 2008 Financial Crisis
Bridgeforce’s challenge was to:
- Triage the home equity portfolio to identify opportunities to mitigate loss.
- Very quickly develop strategies to stop the increase of accounts.
- Develop an action road map for both short- and long-term enhancements.
Bridgeforce rapidly conducted an extensive assessment of 5,000 very high-risk accounts. After reviewing the opportunities and gaps, and taking into consideration the need to quickly develop a prioritized plan, Bridgeforce built a two-phased approach.
Bridgeforce’s work shortened execution time and helped the client focus its resources on the highest-value processes, all within six weeks. The team helped the bank quickly analyze and treat 5,000 accounts in Phase 1 and 25,000 high risk accounts in Phase 2. The work completed by Bridgeforce resulted in conversion and treatment rates that exceeded the bank’s expectations.
- 20% of customer contacts resulted in financial assessment
- 74% of these contacts have resulted in some form of treatment
- 90% approval rate on customers that requested treatment
- 8% of treated customers used the website prior to speaking with a Loss Mitigator and completed the financial assessment
- Fewer accounts were becoming delinquent, reducing potential charge-offs and delinquent loss mitigation inventories
The bank was aware of Bridgeforce’s extensive client-side experience during the Great Recession and our ability to quickly understand the unique challenges, identify opportunities and find best-fit solutions to reduce the risk and improve treatment rates.