Mortgage technology

Zillow.com, Seattle, has announced the launch of Zillow Mortgage Marketplace, which it describes as a transparent lending marketplace offering borrowers "an anonymous and hassle-free way" to request custom loan quotes from registered lenders. Zillow said the marketplace includes "the industry's first-ever public feedback system" whereby borrowers rate the lenders they contact. Potential borrowers can request customized quotes by filling out a detailed loan request form that is submitted to lenders who have registered on Zillow and been confirmed as mortgage professionals. "Loan shoppers tell us they want real quotes -- not just teaser rates -- when doing their research online, and they want to control who and when they contact by shopping anonymously until they are ready to talk," said Rich Barton, chief executive officer and co-founder of Zillow.com. Consumers can access the Zillow Mortgage Marketplace by clicking on the Mortgages tab on Zillow's website at http://www.zillow.com.

The National Consumers League has announced the launch of MortgageTown, a website aimed at helping prospective buyers understand the risks and benefits of homeownership. MortgageTown explains "nine essential steps" to financing a home, advising consumers on choosing the right loan, closing on a home, protecting themselves from fraud and predatory lenders, and preventing foreclosure. "MortgageTown is a user-friendly and reliable source where consumers can become better versed in the process of getting a mortgage and what pitfalls to avoid as they head down that road," said NCL executive director Sally Greenberg. The new website can be found online at http://www.mortgaetown.org.

DocuSign, a Web-based electronic signature service, has announced its selection by Wells Fargo Funding as an approved electronic signature vendor. The Seattle-based DocuSign said its service enables loan originators working with Wells Fargo to speed up the origination process by getting disclosure documents signed electronically. "With DocuSign's enterprise-class eSignature service, originators can now get required documents, such as truth-in-lending notifications and 1003 applications, signed by borrowers in a matter of minutes, rather than the days needed for paper-based signing," the company said. DocuSign can be found on the Web at http://www.docusign.com.

MISMO and the Property Records Industry Association have published an Intellectual Property Rights Disclosure Draft of business requirements for recording instruments in common electronic document formats. The 30-day IPR draft covers six major objectives: preparing electronic instruments so they are electronically recordable; uploading or transmitting such instruments to electronic closing systems and other platforms; executing the instruments; delivering recordable instruments electronically from e-closing systems to systems in public land records offices; e-recording electronic instruments; and enabling the return of e-recorded (or rejected) electronic instruments to the e-closing platforms, or the retrieval of such instruments by e-closing platforms. The Mortgage Industry Standards Maintenance Organization, the not-for-profit data standards subsidiary of the MBA, can be found online at http://www.mismo.org, and PRIA can be found at http://www.pria.us.

A.M. Best Co., Oldwick, N.J., has announced the launch of Best's Title & Mortgage Guaranty Center, a Web portal that provides access to information generated by the company on title insurance and the mortgage guaranty industry. Content available on the site includes Best's ratings of title insurers, links to Best's rating methodology documents and relevant industry research, and news stories related to the title industry from A.M. Best's news publications. Best's Title & Mortgage Guaranty Center can be found on the Web at http://www.ambest.com/title.

Losses from mortgage fraud will reach $2.5 billion in 2008 and comparable losses will continue for several years thereafter, according to new research from TowerGroup, Needham, Mass. The report says the substantial rise in mortgage fraud over the past 10 years is an important factor in mortgage credit woes, though falling home prices and poor mortgage underwriting have been given most of the blame in recent months. TowerGroup anticipates that lenders will respond by deploying technology to assist in the detection and prevention of mortgage fraud and that their annual spending on such tools will reach several hundred million dollars in the next few years. The research and advisory company can be found on the Web at http://www.towergroup.com.

First American eAppraiseIT, Poway, Calif., has announced the introduction of a valuation tool that it says offers quick, low-cost, accurate values for credit decisions, loss mitigation, portfolio analysis, and quality assurance. The standard Data Assist report verifies a property's legal address and ownership and includes three closed-sale comparables from the subject property's market area, the company said. Data Assist with Listings offers the same information, plus three current listings that are similar to the subject property. "Many lenders are now looking for more alternatives [to automated valuation models]," said Michael Fosser, senior vice president of business development for eAppraiseIT. "Data Assist can provide a high level of confidence without adding significant cost or delay to these transactions." The company can be found online at http://www.eappraiseit.com.

Interthinx Inc., Agoura Hills, Calif., has expanded its PredProtect product to allow for loan-level regulatory compliance in order to respond to regional differences in limits for "mini-jumbo" conforming loans. The tool handles loans between $417,000 and $729,000 in California, Colorado, Hawaii, Maryland, New Jersey, New York, Virginia, and Washington, D.C., without waiting for system enhancements or upgrades, the company said. "The new 'mini-jumbo category was introduced to allow consumers to qualify for loans that could be purchased by Fannie Mae and Freddie Mac," said Roger Fendelman, vice president of compliance for Interthinx. "However, since the limits can vary by county or metropolitan statistical abstract, lenders have been faced with challenges to make sure that this new class of loans complies with the maze of existing federal, state, and local consumer protection laws, including anti-predatory-lending laws." Interthinx can be found on the Web at http://www.interthinx.com.

Compliance Coach Inc., San Diego, has launched Web-based software that enables compliance with a federal regulation that imposes new responsibilities on businesses to prevent consumer identity theft. The new FACT Act Identity Theft Red Flags Rule requires affected entities to perform a risk assessment and take steps to implement a written Identity Theft Prevention Program by Nov. 1, 2008. Failure to comply can lead to a civil money penalty for each violation, regulatory enforcement action, or private plaintiff lawsuits. Companies are required, among other things, to identify all accounts covered by the rule; perform a risk assessment of each covered account; identify "red flags" that may indicate identity theft; develop a written program; provide training to appropriate employees; and provide a compliance status report at least annually. CompliancePal walks the user through a series of questions to help users meet the requirements. The company can be found on the Web at http://www.compliancecoach.com.

Ellie Mae is bringing together electronic document management and online retail lending with its new CenterWise offering. CenterWise provides unlimited electronic document management, including all state and local disclosures, delivery and archiving, along with a scalable WebCenter website and secure online business center that enables greater e-collaboration. The goal is to allow users to extend their enterprise software to their business partners, prospects and customers in real-time over the Web, said Dublin, Calif.-based Ellie Mae at the MBA Tech Show.

Wolters Kluwer Financial Services has sought to make the closing process for first mortgage and home equity faster with its new Simplified Mortgage tool, which reduces the recordable mortgage document into two smaller, easier to understand pieces. At the MBA Tech Show WKFS pointed out that this application reduces the recordable instrument into a two- to three-page document that contains all information required to create a valid lien and fully compliant recording document based on each state's requirements. The second piece is a non-recordable supplement that outlines a loan's standard covenants between the lender and the borrower. This tool allows for a simpler closing in which less paper is required and a portion of the recordable instrument can be presented to the borrower online before the actual closing for e-signing.

At the MBA Tech Show, Fannie Mae has contributed a new patent to MISMO under the MISMO Intellectual Rights Policy so that it may be used by the industry on a royalty-free basis. The SMART Doc specification was originally licensed to MISMO in 2002 by Fannie Mae. This new patent defines processes for validating the view and data sections of a SMART Doc with automated systems. The process enables true "lights-out" post closing and certification.

Newport Beach, Calif.-based DRI Management Systems has planned to launch RINCON, a Web-enabled default management application. At the MBA Tech Show DRI talked about how RINCON helps servicers better manage defaults by using Web services to offer easy deployment, a more robust workflow, letters, forms and spreadsheets embedded in the workflow, automated connection between third parties, an exception-based setup to allow for a more automated process and an upgraded loss mitigation decisioning model. This Web-enabled version of the company's The Default Solution product will be available in early 2009.

Lydian has integrated with NYLX to help lenders increase overall loan quality. The partnership connects Lydian Data Services and Lydian Technology Group's clients with NYLX's point-of-sale technology, equipping clients with a front-end solution that offers real-time pricing and product selection, as well as customer-facing Web portals. On the other end, NYLX customers now connect to Lydian's Mortgage Connectivity Hub to seamlessly connect to lending platforms, package loans for processing or delivery to a wholesaler, and leverage Lydian's BPO capabilities. The partnership also offers a two-way data exchange to allow for more efficient integration and e-collaboration. The deal was forged at the MBA Technology Show.

Rapid Reporting's DirectCheck product will be providing instant verification of Social Security numbers direct from the Social Security Administration for the first time in the mortgage industry. By adding immediate Social Security number verification to the other real-time components of DirectCheck, the industry now has a stronger, better way to reduce fraud at origination, noted Rapid Reporting at the MBA Technology Show in Dallas. The application's users get instant delivery by just entering the borrower's name, Social Security number and date of birth. This coincides with the SSA's new real-time program to begin in October that will allow for the seamless transfer of data back via an XML Web service interface.

Stewart has launched TouchSign technology, which converts the traditional closing table from pen and paper to digital documents and touch screens. The Touch-to-Close system will begin deploying through Stewart's network of offices and agencies this month. Stewart's TouchSign solution allows consumers to perform the real estate closing by the touching of a finger to the computer screen in compliance with applicable regulations. Consumers are able to navigate through their closing documents by tapping the TouchSign screens to provide their consent and signature for closing documents. The TouchSign kiosk is designed to work with Stewart's eClosingRoom technology. The company can be found on the Web at http://www.stewart.com.

Integra Software Systems, Franklin, Tenn., has announced that it will integrate with Compliance Systems Inc.'s IntelleDoc Solutions to provide a single source for document preparation and compliance services. Integra's recent entry into the commercial and consumer lending space created the requirement to provide a single source for its lender clients to prepare docs. One of the advantages of CSi's technology is the ability to map data fields to a single schema. CSi IntelleDoc Solutions include a line of software compliance components incorporating static and dynamic document libraries, automated document selection, customized disclosures, a document customization tool, and compliance support for all states and all types of lending transactions. The companies can be found online at http://www.integra-online.com and http://www.compliancesystems.com.

While it has always been difficult to get a handle on the size of the mortgage fraud problem, a new report by a leading provider of fraud detection products indicates that the incidence of the crime may be much greater than anyone thinks. Analysts at Interthinx, Agoura Hills, Calif., say they found more than 42,000 mortgage applications in the second half of last year that contained significant misrepresentations of the borrowers' incomes. In total, the loans were worth nearly $11 billion. "I have no idea how many of the loans were funded, but I hope none of them," Ann Fulmer, the company's vice president of industry relations, said at the Mortgage Bankers Association's National Fraud Issues Conference in Chicago, where the six-month analysis was released. The questionable loans were discovered by Interthinx' income alert program, which warns clients that a borrower has submitted multiple loan applications and his income has jumped by at least 15% over a prescribed period. "Fraud is like water -- it always seeks the lowest level," Ms. Fulmer said. "That's why it is finding ways around the barriers lenders set up to uncover them." The company can be found on the Web at http://www.interthinx.com.

After 20 years with what is now Wolters Kluwer Financial Services, Roger Gudobba has joined Compliance Systems Inc., Grand Rapids, Mich., as the company's chief strategy officer. Mr. Gudobba was most recently a senior principal with Wolters Kluwer, where he was instrumental in developing and maintaining business relationships. In addition, he was a key contributor to the success of VMP Mortgage Forms, now part of Wolters Kluwer Financial. In 2004, Mr. Gudobba was the recipient of Mortgage Technology magazine's Steve Fraser Award. Compliance Systems, an automated document compliance provider, can be found on the Web at http://www.comliancesystems.com.

First American Credco, a Poway, Calif.-based provider of specialty credit reports to the mortgage and consumer finance industries, has launched Connect Web services technology to enable smoother integrations. Connect provides a secure electronic interface to a wide range of new products available from First American Credco, including identity validation, compliance, and consumer credit solutions. One of the most notable additions available on the Connect interface is the electronic automation of Anthem, First American Credco¹s nontraditional mortgage credit report and scoring system for loan applicants having little or no traditional credit history. The company, which is part of First Advantage Corp., can be found on the Web at http://www.facredco.com.