Mortgage technology

Fidelity National Information Services Inc., a Jacksonville, Fla.-based provider of technology services to financial institutions, has announced a plan to spin off its Lender Processing Services division as a publicly traded company.The plan, recently approved by the company's board of directors, contemplates that FNIS will contribute the assets of the division to a newly formed subsidiary in exchange for 100% of the new company's common stock and approximately $1.6 billion of its debt securities. If approved by the Securities and Exchange Commission and favored with a tax-free ruling by the Internal Revenue Service, FNIS would distribute 100% of the new company's common stock to FNIS shareholders in a tax-free spinoff, the company said. William P. Foley II, executive chairman of FNIS, said the reason for the spinoff is that the company's Transaction Processing Services and Lender Processing Services divisions are "distinct and unique businesses that serve different customers, operate in different markets, and attract different investors." The company can be found online at http://www.fidelityinfoservices.com.

Stewart Lender Services Inc., Houston, has announced the introduction of the Pre-Foreclosure Report, which is designed to help attorneys and lenders determine the condition of a property title when the borrowers are in financial distress.The new report provides a quick "snapshot" of the subject residential property, including a two-owner search, vesting information, open liens, judgments, pending lawsuits, tax information, and other data, the company said. Stewart Lender Services, a subsidiary of Stewart Information Services Corp., can be found on the Web at http://www.stewart.com.

The Bank on Real Estate, Lexington, Mass., has announced that E-Loan has become the first lender customer using a co-branded website that attracts purchase borrowers by offering easy MapQuest access to homes for sale in selected major markets across the country.The BoRE announcement calls this "the first MLS-compliant IDX listing architecture that can be co-branded by lenders." The bank said that after visitors use the site, BoRE accepts their volunteered information, incubates their home search, calls out to test their readiness to buy and borrow, and then delivers the prospects to participating lenders and real estate brokers who have pledged not to poach the lender's referrals. Widely considered a refinance specialist since it first launched, online pioneer E-Loan is using its BoRE site to expand purchase loan business. The co-branded website can be found online at http://eloan.bankonrealestate.net.

The National Foundation for Credit Counseling, Silver Spring, Md., has announced the launch of the Mortgage Reality Check to help homeowners determine whether they are at risk of losing their homes.Developed by housing experts, the "easy-to-take quiz" is designed to help homeowners understand their situation, identify problems, and provide guidance about options and where to turn for help, the foundation said. "Even if foreclosure seems inevitable, there may be options that can help in certain circumstances," the NFCC said. The Mortgage Reality Check is located within the NFCC's Homeowner Crisis Resource Center, which also provides direct access to certified housing counselors and homeowner information and financial tools. The center can be found at http://www.housinghelpnow.org.

Fairway Independent Mortgage Co., a mortgage broker/banker with over 100 branches nationwide, has announced a transition from operating as an FHA nonsupervised loan correspondent to a Department of Housing and Urban Development direct endorsement lender.Fairway said the transition enables it to originate and underwrite its own loans, and to increase its Federal Housing Administration originations and get more control of the underwriting process. Fairway had been operating as an FHA nonsupervised loan correspondent, and has been originating FHA loans since its inception in 1996, but until now did not have the power to underwrite these loans. Fairway said it has had a strong quality-control plan in place for the last several years. The company can be found on the Web at http://www.fairwayindependentmc.com.

Redwood Trust, a real estate investment trust specializing in residential and commercial trusts, has deployed Overture's Mozart Tape Cracking 2.0, a software program that enables secondary-market investors to automatically convert complex bulk loan data submitted by primary market lenders into their own formats."We're now able to receive and audit bulk loans from lenders more efficiently and accurately than ever before," said Gary Moore, vice president of information technology for Redwood Trust. "Tape Cracking 2.0 automates a lot of the processes that surround the conversion of nonstandardized data into an investor's own format, making it faster, easier, and more efficient for us to move forward with the evaluation processes." Among the enhancements that distinguish Tape Cracking 2.0 from the original product are an improved ability to manage multiple templates and outputs; a better auditing trail; improved ability to incorporate non-input data; enhanced data mapping capabilities; enhanced cleaning of data errors; and improved error logging.

Lenders First Choice, Simi Valley, Calif., has formed an alliance with Guardian Mortgage Documents, Lakewood, Colo., to offer integrated, one-stop access to LFC's title, closing, appraisal, flood, and credit services and Guardian's mortgage document products and services.The integration will provide access to Guardian's document solutions from within the LFC settlement services platform and enable users to add Guardian documents to any LFC order with one click, the companies said. "Because LFC provides a paperless environment accompanied by workflow management, the integration will not add any processing time, will result in more timely deliveries of all items related to a transaction, and will eliminate training issues when introducing a customer to the [Guardian] solution," the companies said. They can be found online at http://www.lendersfirstchoice.com and http://www.gmd.com.

DRI Management Systems Inc., a provider of default management software based in Newport Beach, Calif., and Artemis Enterprises LLC, Chicago, announced an alliance at the Mortgage Bankers Association convention that offers single-source access to process and information management technology.Mutual clients will gain "substantial cost saving benefits" through time efficiencies and reduction in the risk associated with untimely and inaccurate communication errors, the companies said. "The combination of process and cross-enterprise contact and content data management has never been offered in this industry before," said Mary Hunter, president and chief executive officer of Artemis. The companies can be found on the Web at http://www.dridefault.com and http://www.artemisinfo.com.

Ellie Mae has launched Encompass Banker Edition 3.0, which it says enables mortgage originators to service their own loans and take advantage of broader banking process management and more comprehensive secondary management functionality.The product also enables users to manage the bulk sale of loans in the secondary market while closely tracking overall profitability on trades, Ellie Mae said. Encompass Banker 3.0's additional upgrades, according to the company, include purchase advice reconciliation that enables users to reconcile funds received from investors when selling loans in the secondary market; audit trails that offer a view of changes, including who made each change and when the change was made; and MERS/MIN registration functions that allow users to generate and register MERS/MIN numbers from within Encompass. Enhancements to secondary management functions include integration to a leading product and pricing engine. The company can be found on the Web at http://www.elliemae.com.

Lydian Data Services, a provider of outsourcing services to the mortgage industry based in Jacksonville, Fla., has announced the rollout of a turnkey outsourced fulfillment system targeted at mid-market originators, banks, and credit unions.Aimed at companies entering the wholesale and retail mortgage origination market or looking to convert their fixed-cost operations into a scalable variable-cost model, Lydian's outsourcing services include the entire collaborative Web-based platform, best-practices fulfillment process, and an experienced staff, the company said. They cover the full range of fulfillment and back-office operations, including processing, underwriting, closing, funding, and delivery to core banking and servicing systems, the secondary market, or various investors. Loan status is visible through authorized access via any Internet connection, providing originators a quick and easy view on the up-to-date status of each loan file, Lydian said. The company can be found on the Web at http://www.lydiandata.com.

Lydian Technology Group, a provider of mortgage integration and process automation, has partnered with Intelli-Mine, a provider of business intelligence and mortgage performance management solutions, to enable midmarket lenders to leverage data routinely captured by Lydian's Mortgage Connectivity Hub to better track their company's performance.The Mortgage Connectivity Hub is a software solution that integrates systems, automates processes across disparate applications, and enables real-time user access to companywide data. In essence, the Mortgage Connectivity Hub enables separate software solutions to seamlessly co-exist and collaborate with one another, the companies said. Now, by leveraging the power of Intelli-Mine's dashboards and business intelligence platforms, the Mortgage Connectivity Hub enables users to monitor their own business data. The companies can be found on the Web at http://www.lydiantechnology.com and http://www.intelli-mine.com.

Stewart Information Services Corp., Houston, has announced the release of a system enabling lenders to electronically transmit and display initial disclosure documents to borrowers in "a secure, online, consumer friendly environment."The system also enables lenders to use Stewart's Online Documents Inc. subsidiary as the provider of the disclosure packages, Stewart said. "The new electronic disclosure solution eliminates the need for lenders to print and mail their initial disclosure documents to the borrowers," said Jason Nadeau, senior vice president of e-lender business for PropertyInfo Corp., another Stewart company. The announcement was made at the Mortgage Bankers Association convention in Boston. Stewart can be found on the Web at http://www.stewart.com.

E-signature provider Silanis Technology is providing enterprise electronic signature and delivery technology in Stewart's electronic disclosure solution.The new e-disclosure offering, from Stewart Company On-Line Documents Inc., enables lenders to electronically transmit and display initial mortgage disclosure documents to borrowers in a secure, consumer-friendly online environment, the companies said. The offering comes at a time when electronic mortgages are on the rise and online mortgage originations by the top 20 lenders were up by 73% in the second quarter, according to a recent issue of Mortgage Technology. The foundation of the latest Stewart offering, Silanis' ApproveIt Web Server, enables the electronic presentation and delivery of regulated documentation (in this case, disclosures) in the correct format and sequence, as mandated by applicable laws and regulations, the companies said. Silanis' solution guides borrowers to accept the terms of the Electronic Signatures in Global and National Commerce Act before beginning the electronic review and acceptance process.

Associated Software Consultants Inc., Middleburg Heights, Ohio, has announced the launch of PowerSeller GPS, a system designed to help small to mid-tier mortgage bankers and brokers increase profits in their secondary-marketing operation.PowerSeller GPS provides tools for managing pipeline and investor commitments and allows originators to capture key data elements to verify that loans are properly priced and ensure that investors are funding loans correctly. The system offers special features to enable mortgage brokers to monitor best-effort marketing activities by gathering information needed to determine the costs and benefits of switching a product line from a best-effort commitment approach to a mandatory trading model, the company said. By offering several features available in the company's comprehensive PowerSeller system, PowerSeller GPS allows small to mid-tier bankers and brokers to take advantage of numerous benefits without having to purchase an upfront license, the company said. Associated Software Consultants can be found online at http://www.asconline.com.

LoanToolbox, Westlake Village, Calif., has signed an alliance agreement with Carson, Calif.-based Document Systems Inc., a developer of mortgage technology for compliant loan document preparation and customer contact management solutions.Under the agreement, LoanToolbox will make DSI's LoanMagic broker point-of-sale software available free for one year to new LoanToolbox subscribers. LoanMagic, developed in 2000, is the first fully integrated mortgage customer contact management system designed to meet the needs of loan officers, LoanToolbox said. The built-in loan program analysis tools allow loan officers to instantly create and e-mail side-by-side comparisons of any of the 10,000 loan programs already built into the system. Connections embedded in LoanMagic allow easy access to Fannie Mae's Desktop Underwriter, Freddie Mac's Loan Prospector, and over 190 of the nation's credit report suppliers, LoanToolbox said. LoanToolbox can be found online at http://www.loantoolbox.com, and Document Systems can be found at http://www.docmagic.com.

Clayton Holdings Inc., a provider of information-based analytics and consulting based in Shelton, Conn., has announced the introduction of Clarity, a new system that it terms "the next generation in due diligence."The system gives loan buyers/securitizers "greater insight into the risk profile of portfolios" at the time of purchase, a projection of losses, and new options to reduce potential losses, the company said. Clarity uses a predictive approach that incorporates Clayton's proprietary risk-filter technology built on data collected in its surveillance of more than $1.5 trillion of subprime and alternative-A mortgage-backed securities. Unlike traditional due diligence, which reports on whether loans meet an acquirer’s guidelines, Clarity scores individual loans and the overall portfolio for credit, compliance, collateral, and estimated loss risk, Clayton said. Third-party data and technology can also be integrated into the process to assess collateral and fraud risk. "Clarity can help issuers identify the riskiest loans, better target due diligence efforts, and project and reduce prospective losses," said Keith Johnson, president and chief operating officer of Clayton. The company can be found online at http://www.clayton.com.

ValuFinders Inc., a provider of valuation services based in Culver City, Calif., has introduced a service that helps originators comply with a Department of Housing and Urban Development Mortgagee Letter regarding accountability and fraudulent appraisal reports.The service, called Appraisal Concierge, was unveiled at the Mortgage Bankers Association convention in Boston. Under HUD Mortgagee Letter 2007-11, dated Sept. 6, 2007, lenders will share responsibility with the appraiser if a poor or fraudulent appraisal leads the FHA to insure a loan at an inflated amount. "Lenders and brokers will soon be just as responsible for fraudulent and deficient appraisals as the appraiser," said Joe Williams, chief executive of ValuFinders. "Our system is an independent portal that acts as a 'middle man' in accepting orders and facilitating the deliverables back to the lender." Appraisal Concierge is described as an outsourcing database that lets lenders and brokers order appraisals through the Web. The system randomly selects an appraiser from a pool. "This service bypasses communications between lenders or brokers and appraisers," assuring appraiser independence, Mr. Williams said.

A new credit management tool from CreditXpert, Towson, Md., introduced at the Mortgage Bankers Association's annual convention allows lenders to quickly and cleanly assess the impact of authorized user accounts on a borrower's credit score, the company says.Billed as an answer to the controversial practice known as "piggybacking," the firm's authorized user filter includes a two-step analysis of a borrower's credit file, first considering authorized user accounts and then excluding them, so lenders will know their effect on a credit score. An authorized user can be a spouse or a child added to a credit card user list, but firms have recently popped up to "rent" such status to the accounts of strangers to boost the scores of those with poor credit or no credit. One borrowed credit card account can boost a score by up to 45 points, according to a leading "rental company." CreditXpert estimates that 30% of credit files have at least one authorized user -- two or three are common, says managing director David Chung -- and six of every 10 of those will have a credit score change when accounts are removed in the scoring process. With CreditXpert AU Filter, Mr. Chung says lenders "can identify the borrower's true risk at a glance." The company can be found online at http://www.creditxpert.com.

The 8th annual Mortgage Technology Awards were presented Oct. 14 by Mortgage Technology magazine in conjunction with the Mortgage Bankers Association's annual convention in Boston.The 10X Award for technology making an "exponential impact" on mortgage lending went to Wolters Kluwer Financial Services for combining its business units to be "a comprehensive source" for a lender's outsourced regulatory compliance needs. The Lasting Impact Award, for developing technology that has proved its worth over time, went to Gabe Minton for "evangelizing on behalf of industry standardization." The Release of the Year Award, to a company launching a product or initiative likely to have the broadest impact on mortgage lending, went to Deal Maker Score for offering a scientific analysis tool that enables originators to offer a customized plan on how borrowers can achieve a target credit score. The Steve Fraser Award, which goes to an outstanding mortgage technology innovator, visionary, or evangelizer, was presented to Scott Cooley of Cooley Consulting for creating the first loan origination system. Winners of other awards, and those who received commendations in all categories, will be posted soon on the Mortgage Technology website.

Nine Wall Street dealers plan to invest $180 million in Thomson Financial's TradeWeb platform, which handles mortgage-backed securities trades as well as other fixed-income and derivative deals.The dealers that have agreed to buy a minority stake and participate in TradeWeb are: Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The Royal Bank of Scotland, and UBS. Thomson and the dealers also separately agreed to fund an expansion of the platform.