GMAC Mortgage Launches RH Reward Pilot Program to Assist Veterans Administration Customers

Oct 06, 2011, 10:00 ET from Ally Financial

FORT WASHINGTON, Pa., Oct. 6, 2011 /PRNewswire/ -- GMAC Mortgage, LLC (GMACM), today announced that it has teamed up with the Loan Value Group, LLC (LVG) to offer the Responsible Homeowner (RH) Reward program to a group of Veterans Administration customers who are current on their mortgage payments but have seen a significant decline in the value of their homes.  The program returns a portion of their lost equity in exchange for continued, timely mortgage payments.

RH Reward is designed to encourage homeowners to avoid default and possible foreclosure by offering a cash reward when specific payment milestones are met.  The program creates an incentive without changing the terms of the original mortgage note, or requiring additional documentation or disclosures by the homeowner. Participation in the program is completely voluntary and there is no cost to the homeowner.

GMAC Mortgage has offered the pilot program to more than 4,000 military borrowers and their families who have obtained a streamlined refinance mortgage loan guaranteed through the Veterans Administration.  To be eligible for selection into this pilot program, the loan must be in a "current" loan status.

"GMAC Mortgage is committed to preserving home ownership whenever possible and has been a leader in exploring and adopting programs to assist borrowers," said Steve Abreu, president of GMAC Mortgage.  "We are pleased to offer this additional option for the men and woman who serve our country and who may have lost some value in their home due to the housing market disruption."

"We are delighted to be working with GMAC Mortgage and take great pride in providing ongoing RH Reward program support to our courageous service members," said Frank Pallotta, a Managing Partner with Loan Value Group.

The RH Reward program is administered as follows:

  1. The homeowner with negative equity is selected by GMAC Mortgage and presented with an initial RH Reward in their designated account.
  2. The homeowner is required to continue making their full and timely mortgage payments over the life of the loan to remain qualified.  
  3. For a fixed period of time following enrollment, each month the homeowner makes their payment on time, an additional reward is credited to their RH Reward account
  4. Upon pay-off of the loan, if all required payment milestones have been met, the homeowner will receive a check from GMAC Mortgage for the full balance of their RH Reward account.

The Responsible Homeowner Reward program ("RH Reward") was initially launched as a pilot program across the 28 states and the District of Columbia containing the hardest-hit cities most impacted by declining home values.  The company is evaluating expansion opportunities in other states across the country.

About GMAC Mortgage LLC

GMAC Mortgage LLC is a subsidiary of Residential Capital, LLC (ResCap), specializing in residential mortgage finance.  GMAC Mortgage LLC originates and services residential mortgage loans under the GMAC Mortgage brand name. 

About Loan Value Group LLC

Founded in 2008, Loan Value Group LLC is a mortgage solutions provider of a large-scale, low-cost, turn-key platform that positively influences consumer behavior on behalf of residential mortgage owners and servicers. Based in Rumson, N.J., LVG provides owners of risk with a solution that directly addresses strategic default through the use of incentives. LVG is the exclusive provider of the Responsible Homeowner Reward® (RH Reward®) program, named one of the "50 Best Inventions of 2010" by Time Magazine. Institutions can learn more by contacting Frank Pallotta or visiting Consumers can learn more by visiting


Jim Olecki

Susan Fitzpatrick

SOURCE Ally Financial