For mortgages and auto loans
WHITE PLAINS, N.Y., March 29 /CNW/ - Debt Resolve, Inc. (AMEX: DRV)
announced today the launch of DR-Default, an online tool for collecting
defaulted mortgage and automobile loans. With DR-Default, creditors can invite
their customers to a safe, secure and easy-to-use website where they are
presented with options to pay or settle their defaulted mortgage or automobile
DR-Default was created in response to the rising default rate in subprime
loans. It enhances Debt Resolve's other products for collecting credit cards,
student loans, utilities, and other types of consumer debt. DR-Default is
easily integrated into clients' collection systems. In addition, clients may
authorize collection agents to use this product, or place their accounts with
Debt Resolve's wholly-owned collection agency, First Performance Corp. First
Performance is experienced in collecting defaulted mortgage and subprime debt.
Last year, 13.5 percent of mortgages originated in the U.S. were subprime
(up from 2.6 percent in 2000), according to the Mortgage Bankers Association.
The total subprime market accounts for approximately 20 percent, or $600
billion, of the $3 trillion mortgage market. It was reported that more than 43
million loans were outstanding at the end of 2006. The total number of
delinquent mortgages has increased to approximately $150 billion.
Auto finance is the second largest consumer credit industry in America.
Federal Reserve analysts estimate that the subprime auto market has quadrupled
over the past decade, up to $65 billion in loans from approximately $15
billion. However, some lenders in the industry have estimated that the
subprime auto finance industry is reaching $125 billion a year.
James Burchetta, Debt Resolve Chairman and CEO said: "It is our
experience that banks and other lenders want to treat their customers fairly
and are concerned about the rising default rates. DR-Default will allow
debtors to access a secure website to pay and settle their defaulted debt, and
in some cases, receive alternative options to cure the default. DR-Default
will assist in containing the damage caused by the recent increase in defaults
within the subprime market."
About Debt Resolve, Inc.
Debt Resolve provides lenders, collection agencies, debt buyers and
utilities with a patented online bidding system for the resolution and
settlement of consumer debt and a collections and skip tracing solution that
is effective at every stage of collection and recovery. Through its
subsidiary, DRV Capital, LLC, the company is actively engaged in the purchase
and collections of distressed accounts receivable using its own collections
solutions. Through its subsidiary, First Performance Corp., the company is
actively engaged in operating a collection agency for the benefit of its
clients which include banks, finance companies, and purchasers of distressed
accounts receivable. The stock of Debt Resolve is traded on the American Stock
Exchange. Debt Resolve is headquartered in White Plains, New York.
For further information:
For further information: Debt Resolve, Inc. John Grimm (Auto),
914-949-5500 Vice President of Sales firstname.lastname@example.org or Alan Schoening
(Mortgage), 914-949-5500 Business Development email@example.com or
Press: Ehmonie Hainey, 914-949-5500 x228 firstname.lastname@example.org or DRV
Capital Howard Knauer, 914-949-5500 President email@example.com or First
Performance Corp. John Tonetti, 702-951-1000 President firstname.lastname@example.org or
Press: Rubenstein Public Relations Michelle Manoff, 212-843-8051
MManoff@rubensteinpr.com or Investor: BPC Financial Marketing John Baldissera,