Roundup: CASA Finds Use in First Mortgage Arena

Principal Residential Mortgage Inc., Des Moines, ranked 12th among national lenders by volume according to MSN affiliate, the Quarterly Data Report, has selected Case Shiller Weiss to implement a customized collateral risk assessment system. CSW is a unit of Fiserv Inc.

The system will be built around CSW's CASA automated valuation model. While AVMs have made significant inroads in the second lien market, only a few lenders have chosen to use the tools for first mortgage lending. According to Terry Loebs, vice president of sales, marketing and services for CSW, that's exactly what Principal Residential plans to do with the new system.

The CASA collateral scores solution will enable Principal Residential to optimize important aspects of its loan underwriting and appraisal quality control processes, CSW said. The lender - an originator of first lien, government and conventional conforming loans - will use the CASA scoring solution within its pre-funding environment to assess collateral valuation risks associated with first lien mortgage loan applications.

As part of the customized solution for Principal Residential, CSW will couple a "property flipping" fraud detection service with its AVM offering.

"We chose the CSW CASA solution as the driver for our collateral scoring process because of its accuracy, predictive scores, system options and scalability," said Larry Ruder, director of quality management at Principal Residential.

Mr. Loebs called the agreement "a milestone" for the AVM business. He said, "We are extremely pleased that a player of this stature in the first mortgage arena has concluded that the CSW CASA solution is the most suitable for such critical aspects of conventional first mortgage loan underwriting and front-end appraisal quality control processes."

Principal Residential Mortgage is a full-service lending institution, currently servicing a portfolio of over $100 billion.

Advanced Collateral Joins FNC Network

Oxford, MS-Advanced Collateral Solutions, Bloomington, Minn., has formed strategic alliance with FNC here that will make ACS accessible to FNC's clients through the service provider's integration with FNC's Collateral Management System.

CMS, a transaction management platform specifically designed for the collateral portion of the mortgage transaction, enables lenders to create flexible interfaces with settlement services providers. It streamlines mortgage origination through automated service procurement, quality control and risk analysis.

Advanced Collateral Solutions is

one of the largest appraisal management companies in the country, offering appraisals, AVMs, broker-related tools and other valuation products and services in all 50 states. ACS has more than 500 employees and has contractual relationships with 15,000+ appraisers/brokers across the nation.

Prudential Chooses FICS Commercial Servicer

Dallas-Prudential Asset Resources, the commercial loan servicing business of Prudential Mortgage Capital Co., has successfully implemented the Commercial Servicer mortgage loan servicing system from Financial Industry Computer Systems Inc. here.

The company made the decision to go with the FICS decision last spring and will use the system primarily for servicing FHA and Ginnie Mae commercial loans, the company said.

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