Rochester, New York (PRWEB) October 31, 2011
Dr. Robert D. Manning, distinguished consumer finance scholar (author of CREDIT CARD NATION and hyperlink to http://www.creditcardnation.com) and founder of the nonprofit Accountable Debt Relief (RDR) Institute, announced the release of his companys pathbreaking, on the web mortgage underwriting, house refinancing, and housing counseling assessment technique final week in Salt Lake City, Utah. Throughout his luncheon address at the Utah Housing Coalition conference, Dr. Manning, 1 of the earliest forecasters of the Customer-Led Recession and collapse of the US housing marketplace, reported on the current state of the U.S. economy, the perilous situation of the housing market, and the failure of the banking market to adjust to the realities of current risk-management requirements.

According to Dr. Manning, public policy-makers created the fatal mistake of assuming that the 2007 recession was propelled by a standard company-cycle that would final 3 or four years rather than a consumer debt bubble that would demand drastic household debt relief by means of loan forgiveness and low-interest loans. The problem is that economic institutions have not adjusted to the new reality of their faulty underwriting strategies. Individually-primarily based FICO scores and associated retrospective financial measures are much less trustworthy assessments of customer economic capability in the existing atmosphere of consumer credit scarcity. As a outcome, banks are reluctant to supply loans to creditworthy households that have encountered economic difficulty throughout this turbulent financial period.

Throughout his presentation, Dr. Manning asserted that a new paradigm for assessing household credit capability should be explored if the nation is to keep away from a deeper and much more prolonged recession. Otherwise, fewer mortgage and loan applications will be authorized which will reinforce falling housing prices and lead to far more households abandoning their upside-down mortgages. Dr. Manning then explained the key attributes of the RDR net money-flow algorithm/software program that calculates net, soon after-tax household revenue based on such aspects as federal, state and local taxes, household structure, tax filing status, regional cost of living, property ownership status, federal authorized deductions such as retirement and charitable contributions, and court-mandated payments such as youngster help and garnishments.

This proprietary algorithm is the basis of a webservices-primarily based data management program whereby lenders, counselors, and person buyers can conduct a preliminary, on-line assessment of the affordability of a mortgage modification, property loan, and even an auto loan.

Following the presentation, Dr. Manning demonstrated the ease and speed in making use of the RDR online financial assessment systembeginning with a price range assessment based on the net cash-flow computer software. The assessments can be calculated for people and for households. The unique Credit Capacity score gives a swift assessment of the financial situation of a household. Similarly, the on the web mortgage underwriting, property loan modification, and auto loan assessments estimates the size of the loan that is inexpensive, whether the borrower must qualify for a prime or subprime loan, and the total expense of the loan. Moreover, RDR delivers a distinctive tenant screening score that estimates whether or not a person that has knowledge economic distress such as foreclosure or bankruptcy can afford a specific rent with out getting rejected due to a low FICO score.

Dr. Manning concluded that, in the short-term, the pace of the US financial recovery will depend on the stabilization of the housing marketplace. Without having new risk management tools to a guide recently foreclosed and/or bankrupt households into the rental housing market place and far more precise underwriting tools that are not dependent on flawed FICO scores, the US will face a decade of declining economic prosperity and widening social inequality.

For a lot more about RDR, its pathbreaking net money-flow tools, and Dr. Manning, please contact us at 585-563-7675.

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