GCC Converts Legacy System

Executives from GCC Servicing Systems here will unveil a new look for its software at this year's MBA conference as well as spend time talking to other attendees about industry trends.

GCC has completed a conversion of its legacy system to create a Windows-based, Explorer-type navigation environment for its loan servicing software. And the company's president, Glenn Liebowitz, said GCC will have six employees at the show, its largest contingent of participants going to the conference in the company's 25-year history.

He said now is a good time to be talking to the industry about enhanced software.

"People are always talking about outsourcing," he said. "This is a big show for us."

One topic he expects will generate some exhibit hall traffic at the convention is the Federal Home Loan Banks' Mortgage Partnership Finance program.

He said the MPF program has attracted a lot of interest from community banks.

"I'm hearing every day now from banks that are talking about getting into that program," he said.

That would give the banks an impetus to sell loans into the secondary market and retain the servicing rights as well as the customer relationship. As such, it could increase demand for mortgage banking software from community banks that used to stay out of the business.

In addition, the interest in the MPF suggests that the Federal Home Loan Bank program has the potential to put up "very good competition for Fannie and Freddie."

If the MPF attracts more banks to participate in the mortgage servicing business, it could prevent the industry from being dominated by a small number of mega-servicers, he said.

The MPF program allows FHLBank member institutions to sell some of the credit risk on the loans and all of the interest rate risk. The lender retains servicing rights on the home loans and participates in the credit risk as well.

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