Debt Resolve Applies its Model to Mortgages, Travels Overseas

Debt Resolve, White Plains, N.Y., which started in 2003 and went public in November of 2006 (AMEX: DRV), recently broadened the client list for its online debt repayment solutions from U.S.-based financial institutions to the European market, according to Chairman and CEO Jim Burchetta.

The company is also attempting to break into new segments in the U.S., offering its products to firms serving mortgage borrowers and their need for credit solutions.

Among Debt Resolve’s customers are three of the nation’s top 10 banks and many of the nation’s top collection agencies. The firm’s patented auction model is often likened to Priceline because select debtors get to bid on the amount that they will repay.

By offering the bidding option, collectors garner more than the floor amount on 60 to 70 percent of the bids, according to Burchetta.

The company offers several different application modules: DR-Prevent – for early stage collections; DR-Settle – for late-stage and charged-o­ff accounts; DR-Default – for secured loans (e.g., auto finance and mortgage); DR-Pay – for online payments; DR-Mail – a secure e-mail module; and DR-Control – for system administration.

Burchetta said that the Debt Resolve’s hosted ASP model means that there’s no complex implementation period. Debt Resolve promises a firm will be up and running with the solution within a month, with some clients operating in just over three weeks.

“We don’t ask them to do anything but send us the data,” Burchetta said.

Debt Resolve’s competitive strength is this ease of implementation combined with a product that allows collectors to reach debtors in nontraditional means, said Burchetta.

In the mortgage segment, Debt Resolve is working with The Resolution Group (TRG), Irvine, Calif., which provides consulting, market strategy and planning to the mortgage, banking and healthcare industries. TRG is loaning up to $4.5 million to Debt Resolve as it uses its DR-Default and DR-Settle to develop a product for the sub-prime home mortgage work-out/note modification market.

“This is an opportunity to use our suite of online tools to present a homeowner an opportunity to cure a default,” Burchetta said. “Our products provide the homeowners and lenders a platform to work out payments.”