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Plan Helps Protect Lender Portfolios and Customers Credit Ratings

March 11, 2009

NEW ORLEANS — The Financial Group (TFG) has enhanced its DPPNet software package with the addition of the Borrower’s Protection Plan (BPP). It provides lending institutions nationwide with the ability to cancel or reduce any portion of a customer’s monthly loan payments in the event of a job loss, and be insured and reimbursed for payment reductions under the plan.

BPP enables lenders to not only protect their loan portfolios and help their customers protect their credit scores, but also offers the lender a flexibility to customize its program any way it sees fit. The software, which works independently of lending institution’s existing software, allows customers to “click and enroll” for the complimentary program via the lenders website, and even purchase an enhanced package for additional protection. BPP is a flexible, secure online program for its customers that can be implemented almost immediately.

“Consumers are nervous,” explains Jack Panno, CEO of The Financial Group. “The elephant in the room is the fear of losing one’s job. If a customer becomes unemployed, their lender could cancel or reduce the borrowers’ monthly payment by half or two-thirds or other percentage chosen by the lender, for a period of three to six months. A contractual liability policy would reimburse the lender for payments cancelled or reduced under the program.”

“Another benefit of the BPP is that it’s available to all consumer and mortgage borrowers for all types of loans — not limited to mortgage loans or just those loans already past due,” added Panno.

“We have developed a ‘lender paid’ program whereby, a lender can offer complimentary benefits to all their borrowers and up-sell enhanced benefits via the web and DPPNet,” stated Panno.

Customers can choose to upgrade or extend this service for a nominal monthly fee and include other life events that may affect their ability to repay the loan, such as disability, hospitalization or family leave.

“The current and proposed government sponsored programs only help those people already in trouble with their repayments,” Panno added. “DPPNet offers lenders an avenue to reach out to their customers with a plan that may just keep them out of trouble, and provide some employment peace of mind for new borrowings and purchases.”

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