In the last edition of this blog I mourned the loss of an electronic mortgage pioneer, AmTrust. As it turns out, that obituary was premature and this mortgage technology editor couldn’t be happier. New information has come to light that will make e-mortgage believers very happy, indeed.
After the acquisition of AmTrust by New York Community Bank, there was uncertainty as to how new ownership would impact the bank’s presence as an e-mortgage pioneer. Many executives were wondering if it would be “e” business as usual, or “e” business out the door. And make no mistake, AmTrust is important in the overall adoption of e-mortgages as over 80% of the e-notes registered on MERS come from AmTrust.
The first glimmer of good news came when I was forwarded a statement that said, “Just two weeks after acquiring the deposits and certain assets of AmTrust Bank, New York Community Bank, the second largest thrift in the nation, today announced that is has employed 1,459 of AmTrust’s employees. In connection with the announcement, New York Community Bank noted that it will maintain AmTrust’s Mortgage Banking Operation, which originated $20.1 billion of single-family home loans for sale in the first nine months of 2009.”
That was nice, but what does that mean for the bank’s e-mortgage strategy for 2010? There will be no impact, according to Jon Baymiller, AmTrust’s executive vice president, mortgage banking. “We are continuing to operate AmTrust Mortgage Banking in the same fashion as previously executed,” she said.
In fact, Mr. Baymiller went further to say, “We will continue to enhance our e-vision going forward. We would expect [e-note/e-mortgage] production in 2010 to be consistent with 2009's.” There you have it.
While new players will likely enter the e-mortgage space in 2010, it seems none will be lost. AmTrust has led and continues to lead the way in proving out the e-mortgage case and others will likely follow.
