Mortgage technology

A new player has entered the ring to vie with Calyx, Ellie Mae, Lenders Insight, LION, and others to serve brokers by automating loan qualification and lender referral.With technology coming from a successful real estate company, Highland, Calif.-based PreQualPal Inc. offers mortgage brokers and loan officers a suite of online tools that dramatically reduces the time they spend searching through rate sheets and keying in data. A key feature is simultaneous real-time rate and pricing that includes quotes from multiple lenders. Taking 17 variables in getting a quote from a lender, the system automatically arrives at an adjusted rate and compares and maximizes lender rebates. The company particularly touts its tools for building relationships with real estate agents in a shrinking mortgage market. http://www.prequalpal.com

Indecomm Global Services has signed an agreement to acquire McLean, Va.-based Mortgage Dynamics Inc., a mortgage banking management consulting and outsource services firm.The 18-year-old company was sold for a combination of cash and stock, but the financial details were not disclosed. Indecomm said it will adopt the Mortgage Dynamics brand name for its U.S. mortgage outsourcing operations. Mortgage Dynamics will continue under the leadership of Mary Bruce Batte and Dan Measell, Indecomm said. The parties said they expect to complete the transaction by June 30. Indecomm is an international business process services firm with headquarters in Bangalore, India, and operating centers in the United States.

Minneapolis-based Dexma has earned MXCompliance certification for credit request and automated underwriting services for its Web-based platforms.The MISMO eXtensible Markup Language Compliance certification validates that these services provided by Dexma to lenders and other mortgage industry players complies with MISMO standards for such transactions. Without data exchange standards, lenders must manually enter loan data into multiple systems, increasing costs, processing time, and the possibility of errors. MXCompliance certification assures lenders that services can be easily accessed and mortgage data can be exchanged quickly, eliminating the need for manual data entry or costly data conversion systems. MISMO, a nonprofit subsidiary of the Mortgage Bankers Association, develops mortgage data exchange and file specification standards for lenders and mortgage technology providers. Dexma can be found on the Web at http://www.dexma.com.

If you measure agent performance in a call center by the average time it takes to handle an inbound call, you are making a big mistake, Wells Fargo's Gary Class told attendees June 5 at the SourceMedia Business Intelligence Forum in San Francisco.Instead, the measure should be the elapsed time it takes to solve the customer's problem, he said during a session on call-center metrics. Handling inbound calls successfully can be a huge factor in determining whether you will be successful in cross-selling products such as home equity lines of credit, according to Mr. Class. Business intelligence technology such as pattern-recognition software earns its keep because the more you can predict behavior, the better you serve customers -- and thereby "earn the right to cross-sell," Mr. Class said.

Dublin, Calif.-based Ellie Mae has launched a new edition of its mortgage automation system, Encompass Professional Edition, geared toward giving mortgage brokers more marketing functionality.Encompass Professional Edition is a multi-user program that adds marketing and productivity tools beyond those included in Encompass Standard Edition. Unlike other Encompass loan origination products, the new product features a marketing campaign manager, contact synchronization with Outlook and ACT!, and a software development toolkit enabling users to develop custom applications around Encompass, Ellie Mae said. All the added features of Encompass Professional will also be rolled into Encompass Anywhere, Ellie Mae's Web-based application. The company can be found on the Web at http://www.elliemae.com.

SwiftView Inc., Portland, Ore., and Netupdate Inc., Bellevue, Wash., have partnered to enable borrowers to use SwiftView's SwiftSend InBound service to send documents to lenders electronically.A borrower who uses Netupdate's Originator Pro online point-of-sale system to apply for a loan and check loan status will now be able to securely fax or upload loan documentation directly into an eLoanFolder. "We're making electronic submission of documents to lenders very simple," explained Diane Holmstrom, Netupdate's chief executive. Within each borrower's website, borrowers can upload documents or print fax cover sheets that are bar-coded to route documents automatically into the correct eLoanFolder, she said. "Scanning documents post-closing will soon be a thing of the past for documents that can be created or received electronically," added Steve Bachelder, president of SwiftView. "Using our technology, lenders can then share documents electronically throughout the entire loan process, including underwriting, post-closing, investor delivery, and final long-term archiving." The companies can be found on the Web at http://www.swiftview.com and http://www.netupdate.com.

E*Trade Financial Corp., New York, and NeighborWorks America, Washington, D.C., have announced the launch of the "Keys to My Home" website, which offers bilingual, user-friendly information about preparing for and maintaining homeownership.Resources on the new website include "The Top 10 Questions to Ask Your Lender," a primer on home insurance, mortgage loan affordability and debt calculators, and a mortgage comparison worksheet. "Keystomyhome.org provides customized budget tables that fit the unique needs of each consumer," said Ken Wade, chief executive officer of NeighborWorks America. "This tailored approach is ... the perfect blend of technology and a human touch." The English version of the website launched June 1, and the Spanish version will be available this summer. The website is one of several education initiatives supported by E*Trade Financial and NeighborWorks America, including neighborhood computer-lab homebuyer kiosks in target minority and low- to moderate-income markets. The new site can be found online at http://www.keystomyhome.org.

TotalMove Inc., a national consumer real estate and moving services company based in Shelton, Conn., has launched a new proprietary customer relationship management system.The company said the new system will "better nurture" consumers who have been prequalified for mortgage loans with lenders that are part of the company's Mortgage Partner Program. The program is designed to help mortgage lenders improve their purchase-money mortgage lead conversion, TotalMove said. "Our new CRM system will significantly streamline our processes, giving our coordinators more time to focus on consumer needs," said Tom Soltis, who was recently appointed vice president of operations at the company. TotalMove provides move-planning assistance, real estate agent selection, and access to insurance and other services related to real estate transactions. The company can be found online at http://www.totalmove.com.

Pamela C. Milano has been named chief product design executive for LoanMagic, the mortgage loan presentation and management program of Document Systems Inc., Carson, Calif.Ms. Milano has over 25 years of management experience in mortgage banking technology. She introduced the first point-of-sale application in the industry for Citicorp Mortgage, and served as senior vice president for Countrywide's Consumer Markets Division when Countrywide began rolling out LoanMagic to its retail mortgage loan officers in 2002, Document Systems said. In her new post, Ms. Milano will plan and direct LoanMagic's product design policies and oversee the development of products related to LoanMagic. Document Systems can be found online at http://www.docmagic.com.

Cincinnati-based eLynx Ltd. has helped Ditech.com, Costa Mesa, Calif., achieve a 35% borrower conversion from paper to e-signed disclosures in May, according to eLynx.That success was achieved by training 2,500 Ditech.com loan representatives and 2,200 processors to use a new browser-based eWelcome service that lets mortgage customers securely receive, review, and approve documents via the Internet. An eLynx spokesman said a key to the great success of the launch was that Ditech not only trained all affected staffers before the launch, but provided incentives and prizes to the sales teams achieving the highest tallies of paper-to-electronic conversions with their borrowers. Ditech.com said it expects to use the service to shrink cycle times and bring consumers closer to embracing a fully paperless loan transaction. The companies can be found on the Web at http://www.elynx.com and http://www.ditech.com.

On Tuesday, May 30, Argent Mortgage Co. LLC will launch Argent University to help its approved brokers "enhance their professional skills and build their businesses."Powered by CampusMBA, the educational arm of the Mortgage Bankers Association, Argent U. will provide 12 months of 24/7 online access to more than 50 online courses for the single price of $350. Argent said its research shows that total price to be about $100 below the advertised cost of one typical Web-based course. In addition to a variety of useful resources, the Argent U. course of study will comprise 60 courses divided into three tracks. Some courses will provide continuing education credit, while others will lead to actual professional designations. An Argent spokesman said the program design was based on feedback gathered in broker focus groups. The company can be found online at http://www.argentmortgage.com.

The use of automated valuation models to assess the value of a home may no longer result in property value penalties, according to a new criteria report by Fitch Ratings. Under the new criteria, AVM review depends on individual lenders' processes and controls for using the models rather than the overall strength of the values in the regions the properties being valued are in, according to Fitch senior director Suzanne Mistretta. Going forward, Fitch "will discount property values by 5% or more if either a lender's usage processes and controls do not adequately mitigate overvaluation risk, or if a lender's processes are not disclosed to Fitch," she said. Previously, Fitch said it "would discount property values derived from an AVM assessment from 10%-15% in regional markets deemed 'weak' or 'soft.'" Fitch can be found on the Web at http://www.fitchratings.com.

SharperLending LLC, a provider of a Web-based platform that enables lenders to order, store and manage products and services from multiple vendors at a single point of entry headquartered in Spokane, Wash., has partnered with CreditXpert Inc. to offer its users Credit Assure, a loan closing software tool that automatically pre-scans credit files and identifies opportunities to raise credit scores based on credit data accuracy and credit management.SharperLending's bundled services platform now allows lenders to access Credit Assure to quickly and efficiently perform due diligence on all credit reports. The SharperLending platform seamlessly integrates with Credit Assure to automatically alert users of potential issues that may be artificially lowering an applicant's credit score or credit management opportunities, which, if acted upon, may improve the applicant's credit. The company can be found on the Web at http://www.sharperlending.com.

The Federal Housing Administration is working on the first update of its automated underwriting scorecard, TOTAL, since it was introduced in 2004, according to a report by congressional auditors.The General Accountability Office takes FHA to task for failing to have policies in place to routinely update TOTAL (Technology Open to Approved Lenders), noting that the scorecard may have lost some of its effectiveness in predicting defaults. The GAO also raises concerns about the fact that FHA loans with downpayment assistance or "gifts" from nonprofit groups have higher default and claim rates than other FHA loans, but the scorecard does not include variables for the source of the downpayment. In response, the FHA says the scorecard is "working exactly as it was envisioned" and the contractors and loan data have been secured for the update of the technology. FHA is "revisiting" the issue of downpayments and whether the "source and amount of gifts for the downpayment should be added to the algorithm."

Digital Risk, a risk mitigation company providing tools designed to limit financial services firms’ exposure to fraud, has introduced "Risk IQ," a verification product that provides a "360-degree" risk assessment of mortgage transactions.The vendor, which introduced the product at the Mortgage Bankers Association's National Fraud Issues Conference in Chicago, said it is forging new ground in cost per transaction savings with the product. "This newer technology means better due diligence and a more cost-effective means for achieving it," said Jeffrey Taylor, CEO, Digital Risk. Risk IQ uses data sourcing and reporting operations capable of decreasing operational time by an average of 20% and is highly customizable, according to Mr. Taylor. "The black-box, one-size-fits-all model of the past simply cannot produce the results required to keep mortgage companies competitive in today’s marketplace," he said. "Some lender losses today are the result of using fraud prevention tools invented five years ago and not capable of fighting today’s sophisticated fraud," said Mr. Taylor. Peter Kassabov, president of Digital Risk added, "It’s a different market today, full of repurchase requests that are putting some companies out of business and others into court."

Citing artificial intelligence as the differentiator, United Mortgage Lenders, Boca Raton, Fla., has chosen MindBox's ARTOptimize product suite for its Bulls-Eye point-of-sale decisioning system.The artificial intelligence of the system takes it beyond pre-qualification and automated underwriting. "It can be taught how to behave and what to present to the loan officer," said UML president and CEO Jamie Thornton. "If a new investor enters the picture, we can teach the system the new investor's product eligibility rules, pricing & pricing adjustments by updating the rules in the MindBox Power Editor." The Greenbrae, CA-based MDA Mindbox's decisioning systems feature rule- and case-based reasoning software.

Silver Hill Financial LLC, a Miami-based real estate lender, has announced an alliance with NetBank Inc., an Atlanta-based online lender, to enable the latter to offer commercial real estate loans to its small-business customers.Silver Hill said it offers a customized approach that allows lenders of all sizes to become "instant commercial lenders" by relying on Silver Hill to perform back-office functions. "Our strategic alliance will allow [NetBank] to expand their product line and enhance their brand while we handle all the details of commercial transactions for NetBank's small-business customers," said Jerry Feinstein, senior director of correspondent lending at Silver Hill. The companies can be found online at http://www.silverhillfinancial.com and http://www.netbankinc.com.

Hanover Capital Mortgage Holdings Inc., a New York-based real estate investment trust, has reported a net loss of $700,000 ($0.08 per share) for the first quarter, compared with net income of $1.4 million ($0.16 per share) a year earlier.The mortgage REIT attributed the loss to the lower operating income of its REIT segment, primarily due to the difference in the gain on sale of mortgage assets. The sale of mortgage assets resulted in a loss of $100,000 in the first quarter, compared with a $2.3 million gain in the first quarter of 2005, Hanover reported. The company can be found online at http://www.hanovercapitalholdings.com

Overture Technologies has upgraded its Mozart AUS with the release of version 4.0 at the Mortgage Bankers Association's National Secondary Market Conference and Expo.Mozart is an automated underwriting, pricing, and product selection tool. The upgrades include enhancements to the product's pricing and administrative features and the addition of two new credit services and new fraud prevention tools. Mozart 4.0 also allows underwriters to reconcile a borrower's investment property assets, debts, and correspondent rental income to simplify underwriting for complex investment property situations. The company can be found on the Web at http://www.overturetechnologies.com.

Advectis Inc., Alpharetta, Ga., has announced the release of enhanced capabilities for electronic document transfer and investor delivery in its BlitzDocs Collaboration Suite.The added functionality, announced at the MBA's National Secondary Market Conference and Expo in Chicago, enables lenders to export imaged loan folders for secure, fast delivery to the secondary market. The new export capabilities give lenders and correspondent sellers the ability to assign loans, either pool or flow, for electronic delivery to specific investors or due-diligence providers. Once logged in to BlitzDocs, investors can access the assigned loans via a browser and import the document images directly into their internal imaging systems, Advectis said. The delivery is securely transmitted from the BlitzDocs network to the external parties. No additional software, integration resources, or programming is required for electronic loan delivery. Advectis can be found on the Web at http://www.advectis.com.