Fidelity Gains Foothold in Puerto Rico with Doral Financial Contract
San Juan, PR-Doral Financial Corp., Puerto Rico's largest banking institution, has signed a five-year contract with Fidelity National Financial Inc., Jacksonville, Fla., to service the bank's portfolio of approximately 150,000 mortgage loans using Fidelity's comprehensive servicing system.
"It's going to be a very significant contract for Doral since we anticipate it is going to help us achieve efficiency in servicing portfolios without increasing servicing costs," said Ricardo Melendez, chief financial officer/executive vice president of Doral Financial here.
"We analyzed the Fidelity system and others in the industry and chose Fidelity because of their current capability, their demonstration of understanding our business, and ability to deliver solutions and enhancements to the system."
The contract will also present Doral with the opportunity to expand its operations in the United States and Puerto Rico.
Mr. Melendez said Fidelity's system is known for its stability, reliability and ability to perform successful conversions.
"Working with Fidelity will help us in offering new products from Fannie Mae and Freddie Mac. In conjunction, a bigger company provides the technology you need to support the product. Sometimes smaller vendors have a lack of synchronization. A bigger vendor is more in sync with Fannie Mae and Freddie Mac. That is very important."
Doral Financial provides a multitude of services to the mortgage and financial industries, including the origination and servicing of residential mortgages, construction, commercial and consumer loans, and retail banking through Doral Bank, Puerto Rico's largest growing commercial bank.
Mortgage Computer, Salt Lake City, developed the application Doral currently uses to service its loan portfolio.
"We have done a tremendous job with that company [Mortgage Computer]. Now it's time to change," Mr. Melendez said.
The banking institution will utilize Fidelity's Mortgage Servicing Package and integrated client/consumer products to service the company's mortgage loans. Fidelity says its products automate functions that will help increase customer service responsiveness while bolstering productivity.
"In mortgage lending and commercial banking, we compete with everyone. This conversion will allow us to provide operations to all of our facilities easier than if we were doing it in-house," he said.
"Providing technology for a mortgage operation is an industry. The idea is to allow our people to use the best technology in the market, to concentrate on doing the work rather than developing the technology."
Fidelity National Financial had revenue of $5.7 billion and earned more than $665 million in the first nine months of 2003, with cash flow from operations of nearly $984 million for the same period. The company currently has more than 26 million loans on its system.
"Doral is a model mortgage servicer and is leading the financial services industry in Puerto Rico," said Hugh Harris, president of Fidelity Information Services' mortgage division, in a press release.
"We look forward to building a strong business partnership with them as we move forward in supporting the Puerto Rican mortgage market."
Michelle Kersch, director of corporate communications at Fidelity Information Services, says the contract with Doral is also an opportunity for Fidelity to expand its business.
"This is huge for us. We're moving into a whole new territory. Other companies will see what Doral has done and want to join. Doral is a huge leader in the industry, specifically in Puerto Rico," Ms. Kersch said.
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