Mortgage technology

Informative Research, a provider of mortgage credit information based in Garden Grove, Calif., has announced the release of new Portfolio Credit Review analytic tools aimed at offering mortgage investors and servicers greater insight into future loan performance. The tools provide in-depth credit data and analytics to assess payment risk, mitigate losses, or increase loan retention, the company said. Clients can submit large-batch credit data requests to get results in as few as three business days. Before submission, Informative Research said it works with each client to ensure that the data are optimized. "Investors must be focused on individual loans in their portfolio," said Tony D'Eccliss, senior vice president of sales for Informative Research. "Gone are the days when portfolio risk was measured in broad brushstrokes." The company can be found online at http://www.informativeresearch.com.

Two former Ditech.com executives have announced the launch of Lendability.com, an online mortgage lender based in Scottsdale, Ariz., that aims to be "the leader in both cost and transparency." Paulo La Greca, the new venture's chief executive officer, said the company plans to be in all 50 states by the summer of 2009. Brent Kirk, its chief operating officer, said other online lenders "got carried away with their businesses" by getting heavily involved in subprime mortgages. He said "everything is upfront" at Lendability.com, including rates, fees, and consumer options. Several other former executives at Ditech.com, Costa Mesa, Calif., have joined the company and will remain in Southern California to head up Lendability.com's satellite operations there. The company can be found on the Web at http://www.lendability.com.

First American Subordinate Lien Outsourcing, Dallas, has announced the debut of its Tool for Reserve Underwriting Scoring Model, which defines the potential loss, predicted recovery, and velocity of recovery on a monthly timeline for a subordinate loan pool. Created to address the risk management needs of Wall Street and hedge fund clients, the TRU Scoring Model delivers gross recovery cash-flow projections on a 24- to 36-month basis for a pool of performing or nonperforming subordinate lien assets, the company said. It projects recovery based on internal collection experience with similar types of collateral derived from delinquency and collateral characteristics. "It has been an invaluable solution in managing performance expectations in relation to market servicing benchmarks for the 100,000 distressed junior lien assets that we monitor in our operation," said Brett Benson, director of analytics at First American Subordinate Lien Outsourcing. "In addition, the use of our data products and analytic scores provide a powerful complementary set of metrics for assessing potential losses related to subordinate liens and home equity lines of credit." The company can be found online at http://www.firstam.com.

Denver-based idBusiness, a provider of information security systems for small to medium-size businesses, has announced the launch of the Red Flag Compliance Module. The module is designed to enable mortgage companies to meet the requirements of the so-called red-flag rules under the Fair and Accurate Credit Transactions Act, idBusiness said. "A mortgage banker or broker is facing about 20 serious challenges to his business every day, one of which is red-flag compliance," said idBusiness chief executive Scott Brooks, himself a mortgage professional. "With the Compliance Module, we created a simple tool that achieves compliance first, but second, gives you a tool to build your business in a tough market." The module goes beyond the 26 identity theft "red flags" outlined by the legislation, providing customers with 37 potential signs of identity theft and integrating them into the day-to-day functions of a mortgage company's employees, idBusiness said. The company can be found online at http://www.idbusiness.com.

Financial Crossing, Palo Alto, Calif., has launched a technology-enabled program that expands the professional capacity of financial advisors, mortgage originators and other industry professionals. The Independent Advisor Program allows these professionals to function as personal liability managers, providing mortgage and liability analysis, planning, monitoring, and execution in real time and on an ethical and objective basis through FC's Liability Manager software. The software incorporates patent-pending analytics, market data, and leverages real-time pricing and eligibility from NYLX for thousands of loan programs from multiple lenders; offers seamless mortgage fulfillment services through integration with Lydian Data Services; and has execution and origination of loans and plans in all 50 states through an integrated partnership with Citizens Community Bank of New Jersey, a commercial bank and correspondent. FC can be found on the Web at http://www.financialcrossing.com.

LenderLive Network Inc., a Denver-based provider of business process outsourcing and technology, has announced the purchase of the assets of Guardian Mortgage Documents. The terms of the acquisition were not disclosed. "This acquisition takes our long-standing relationship with Guardian management and its staff to the next level, allowing us to capitalize on the tremendous synergies that are already in place," said Rick Seehausen, president of LenderLive. Guardian, which had been the exclusive provider of document preparation services to LenderLive for 10 years, will retain its management, and its operations will continue from its Lakewood, Colo., location, LenderLive said. LenderLive can be found on the Web at http://www.lenderlive.com.

Interthinx, Agoura Hills, Calif., has launched specific FHA Requirement Solutions to help lenders ensure compliant Federal Housing Administration lending programs. Interthinx said its features and services -- such as income verification, identity validation, occupancy status, automated regulatory compliance checks, and third-party certifications -- provide data validation to meet many requirements to support the rapidly growing share of FHA business. For training purposes, a multitude of Interthinx Red Flags have been mapped to specific FHA requirements to help underwriters understand exactly what loan information needs further scrutiny. For example, the company noted, section 4155.1 of the FHA handbook states that the FHA will insure owner-occupied principal residences only -- at least one borrower must occupy the property. Interthinx provides a minimum of 11 Red Flag alerts around the issue of occupancy that, under various circumstances, will trigger and notify an underwriter of potential fraud or risk. The company can be found on the Web at http://www.interthinx.com.

Minneapolis-based ComplianceEase has released RegulatorConnect and RegulatorDirect, which the company says will enable state-regulated mortgage lenders and banking institutions to plug into an automated regulatory examination process. RegulatorConnect links institutions with state regulators through electronic data transfer, while RegulatorDirect enables lenders to electronically deliver compliance audit reports to regulators with a single click. At the heart of the new process is ComplianceAnalyzer, which was selected by the Conference of State Bank Supervisors to provide baseline as well as customized state agency-specific audits as the examination automation component of the Model Examination Guidelines initiative. The company can be found on the Web at http://www.complianceease.com.

Overstock.com Inc., Salt Lake City, has announced that its website now offers access to online real estate auctions. The company said it has joined forces with Williams & Williams, a real estate auction company based in Tulsa, Okla. "Our site provides Overstock.com customers with information from real estate auctioneers and brokers who have direct access to auction properties and local expertise," said Patrick Byrne, chairman and chief executive officer of Overstock.com. The companies can be found online at http://www.overstock.com and http://www.williamsauction.com.

First American Loan Production Solutions has begun offering electronic document packages that allow lenders to originate and close mortgages on U.S. purchases of investment properties and second homes in Costa Rica, the Dominican Republic, and Mexico. The company said the international e-doc packages include federal- and state-mandated disclosures and program-specific notes and security instruments compliant with local regulations that are unique to the respective countries. In addition, the packages include Internal Revenue Service forms for tax reporting purposes and country-specific closing documents. FALPS can be found online at http://www.loanproductionsolutions.com.

CSC, a provider of technology based in Falls Church, Va., has announced the introduction of Borrower Inquiry, a tool designed to enable homeowners facing foreclosure to track the status of their requests for help from their mortgage servicers. The company said this capability will also help expedite workout requests by substantially reducing inbound calls to servicers and freeing up resources. The inquiry tool, which can be used by any servicer, informs borrowers of progress in accordance with the Hope Now Servicer Guidelines released in June. The borrowers can use a secure website to access updates from mortgage servicers on the status of their workouts. CSC said Borrower Inquiry is the first of several planned default management tools the company is designing to facilitate workouts and improve loss mitigation process efficiency. CSC can be found online at http://www.csc.com.

Home values fell 1.7% in the second quarter, dropping to a level 9.9% below that of a year earlier and posting the largest year-over-year decline in the past 12 years, according to Zillow.com, an online real estate community based in Seattle. Zillow's quarterly national home value report found that median home values stood at a Zillow Home Value Index level of $206,919, the lowest since the fourth quarter of 2004. The company also reported that 29.1% of homeowners who purchased their home since early 2003 have negative equity, owing more than the home is now worth. "The second quarter is the sixth consecutive quarter of home value declines, and we see little promise of turnaround in the short term, as the rates of decline have yet to slow and, in fact, actually accelerated in many markets," said Stan Humphries, Zillow's vice president of data and analytics. Zillow can be found online at http://www.zillow.com.

Bangalore, India-based Wipro Technologies, the global IT services business of Wipro Ltd., has completed the acquisition of Gallagher Financial Systems Inc. The combined entity is now called Wipro Gallagher Solutions. No sale price was disclosed. Wipro offers application development and maintenance, infrastructure management, electronic enabling, business process outsourcing, and consulting services to the finance, retail, manufacturing, health care, transportation, telecom, and other markets. The combination of the two companies will enable integrated delivery of technology and services for loan origination. Initially, Wipro will be able to offer a mortgage loan origination system using Gallagher's NetOxygen technology and optimized business processes. Wipro Gallagher can be found on the Web at http://www.gogallagher.com.

First American eAppraiseIT, a provider of real estate valuation products and services, has announced the release of a hybrid valuation product designed to help the reverse mortgage industry assess and monitor the value and condition of portfolio properties. The company said ValueView addresses a "major concern" of reverse mortgage lenders: the possibility that properties with reverse mortgages will fall into disrepair. "Reverse mortgage customers frequently have properties requiring repairs, which can affect the lender's ability to sell the loan," the company said. First American eAppraiseIT described ValueView as a "low-cost, data-driven solution" to monitor market value and property condition after a loan has been made. It combines a "drive-by" inspection with a valuation determined by two comprehensive automated valuation models, the company said. Lenders receive a current photograph and a concise on-site inspection report that answers questions concerning the property condition, its overall marketability, and the state of the surrounding neighborhood.

MortgageWire reported on July 31, in an item about a patent received by ComplianceEase, that a patent by Mavent was the first received by an automated regulatory compliance vendor to the mortgage industry. ComplianceEase notes that its patent was the first issued, on June 10 of this year. Mavent, which has received a Notice of Allowance for its patent, notes that it filed for its patent more than three years before ComplianceEase did, and that the effective date of a patent, once issued, is the file date.

Ellie Mae, a provider of software and services for the mortgage industry based in Pleasanton, Calif., has announced a partnership with Mortgage Power Network to enable users of Ellie Mae's Encompass mortgage management system to access the network with one click. Ellie Mae said Mortgage Power Network, a provider of information and tools for originators, offers (among other things) ready-to-launch marketing campaigns; Encompass training videos and resources; advice on how to use YouTube and MySpace; advice from industry experts; and video market updates. "Mortgage Power Network is like having an instruction manual for virtually every facet of the mortgage industry, from specific software technologies to specific marketing campaigns," said Mortgage Power Network founder Chip Cummings. "We offer a one-stop shop for the tools and information originators need to succeed." Ellie Mae said the network is offering a new viral video customer relationship management tool that enables users to send video e-mail messages to clients and to access the contact information of anyone who receives the video. The companies can be found online at http://www.elliemae.com and http://www.mortgagepowernetwork.com.

The Mortgage Asset Research Institute, Reston, Va., has announced the release of the MARI Loan Fraud Alert Service Pro, which helps lenders discover fraudulent loan applications before funding via comparative loan application analysis and identity risk management tools. MARI said its original LFAS is a comparative loan tool that helps uncover patterns of common mortgage fraud schemes. LFAS Pro, with patent-pending technology, takes the process a step further, providing insight into the identity of applicants and information about professionals involved in the transaction, such as mortgage brokers, appraisers, and closing attorneys. LFAS combines the Midex credentialing database with ChoicePoint's identity verification tools and adds the capabilities of a comparative analysis loan tool. "Lenders now have a tool that helps them ensure the loans they are about to make are not tainted by fraudulent activity and detect patterns indicative of fraud within their loan pipeline and other contributed lender pipelines," said Tom Chmielewski, vice president of ChoicePoint Financial Services. MARI can be found online at http://www.marisolutions.com, and ChoicePoint can be found at http://www.choicepoint.com.

San Francisco-based ComplianceEase has been issued a patent for its ComplianceAnalyzer automated compliance tool. The patent -- which follows on the heels of a Mavent patent that was the first received by an automated regulatory compliance vendor to the mortgage industry -- covers ComplianceEase's Automated Compliance System ComplianceAnalyzer. The system examines mortgage loans and produces loan-level reports and analytics with respect to applicable laws and regulations at multiple jurisdictional levels, the company said. The Web-based system includes the use of rules-based artificial intelligence, a mapping of business concepts on the loan to concepts within the rules, and a natural language processor to manage all the compliance rules in plain English sentences. The company, a subsidiary of LogicEase, can be found on the Web at http://www.complianceease.com.

Irvine, Calif.-based Mavent has been awarded a U.S. patent for technology used for compliance with consumer credit regulation, the first time an automated regulatory compliance vendor to the mortgage industry has received such a patent. The patent, originally drafted nearly a decade ago, covers systems, software programs, and methods of use for businesses that originate and close loans secured by real estate to audit such loans for compliance with state and federal laws and regulations. Licenses to use the patent are available to Mavent clients as a component of its integrated services. Mavent said it is also considering providing licenses to interested financial institutions and mortgage-related companies that may currently be infringing on the patent. The patented technology underpins Mavent's automated compliance systems, including the Mavent Expert System, the Mavent Compliance Console MC2, custom-client automated compliance engines, its lender and broker license verification and monitoring service. The company can be found on the Web at http://www.mavent.com.

IBM and ILog have signed an agreement regarding a proposed acquisition of ILog by IBM. The deal will be implemented by way of concurrent cash public tender offers in both France and the United States. Through the proposed transaction, IBM will combine its business process management, business optimization, and service-oriented architecture technologies with ILog's business rules management system software. The cash tender offer will be at a price of 10 euros per ordinary share and the U.S. dollar equivalent per American depositary share based on the euro/U.S. dollar exchange rate as of the settlement of the tender offers. This amounts to a purchase price of approximately 215 million euros ($340 million) on a fully diluted basis. ILog's board has approved the transaction and, subject to the receipt of a satisfactory fairness opinion regarding the financial terms, is expected to give a final recommendation before Sept. 15, after which the offer should be filed with the French stock exchange authority. IBM has received commitments from certain shareholders to tender their shares to the contemplated offer, which represent approximately 10% of ILog's issued share capital. ILog can be found at http://www.ilog.com.