Mortgage technology

The adoption of electronic mortgages is being limited by the small number of investors who will buy e-mortgages in the secondary market, but all that may change next year, according to speakers at the Mortgage EC Conference in Las Vegas.Tim Anderson, executive vice president of Dexma, said people will realize the intrinsic benefits of transacting electronically. He predicted that investors might even start offering incentives. "In 2006, I predict an investor will actually offer 1/8th of a point if the mortgage is electronic," Mr. Anderson concluded. Minneapolis-based Dexma can be found on the Web at http://www.dexma.com.

Countrywide Home Loans Inc., Calabasas, Calif., unveiled the company's position on how it will leverage the Web next year to expand its market share at the SourceMedia-sponsored Mortgage EC Conference in Las Vegas.According to the USC Center for Digital Future, 75% of Americans have access to the Web. In addition, 80% of consumers report being online, says a recent Doubleclick Survey. As a result, Countrywide will dedicate 30% of its marketing budget to direct online marketing, according to Bruce Cornelius, executive vice president of the company's consumer markets division. The goal is to become, by 2010, a diversified financial services company serving the needs of households, investors, and institutions, with mortgage lending at its core, Mr. Cornelius said. Countrywide can be found online at http://www.countrywide.com.

Houston-based Allied Home Mortgage Capital Corp. has used proprietary extensions to its technology tools to accommodate an ever-changing mortgage market, Allied chief information officer David Langston told the recent 7th Annual Mortgage EC Conference in Las Vegas.Allied, the largest broker/banker in the country, runs many technology applications, and Mr. Langston contended that the tools used by Allied aren't updated fast enough to allow such a large company to operate efficiently. As a result, Allied has created proprietary extensions to Del Mar Database's DataTrac product to allow for the bundling of services and to its LOS Calyx Point to allow it to operate in a centralized fashion. Since the updates were made, Calyx has released a comparable product and Del Mar will take advantage of its parent company, Fiserv, to offer bundled services with version 8.0. Mr. Langston reported that Allied will evaluate both upgrades to see which better fits the company's needs, the proprietary extensions or the product enhancements from Calyx and Del Mar. Allied can be found online at http://www.mortgageasap.com.

Archive Systems, Fairfield, N.J., has announced an agreement with Ryan Beck & Co., an investment banker and broker based in Florham Park, N.J., to provide Archive's comprehensive process automation service to manage all client documentation.Aspen 360 Broker/Dealer Edition offers a services-based system for Web-based image hosting and workflow management. "This service will transform Ryan Beck's previous paper-based, manual process into an automated solution that manages the flow of all client documents in a fully redundant, Web-based environment," Archive Systems said. Ryan Beck will be able to use remote document capture through scanning gateways to scan documents directly into the Aspen system. "Archive Systems offers the only comprehensive 'software-as-a-service' model with the flexibility to roll out a solution enterprise-wide," said Nick Leone, senior vice president and director of operations at Ryan Beck. The companies can be found online at http://www.archivesystems.com and http://www.ryanbeck.com.

Financial Industry Computer Systems Inc., Dallas, has announced new upgrades to eStatus, a residential mortgage loan servicing product that provides online customer service for borrowers.The upgrades to eStatus (which interfaces in real time with Mortgage Servicer, the FICS residential mortgage servicing system) enable lenders to present "a more unified branding message" on their websites and to create a more user-friendly environment for borrowers, FICS said. A lender can reduce incoming call volume by sending a standardized e-mail message to borrowers encouraging them to view statements and notices on the lender's eStatus website, according to FICS. "Because documents are available for display in eStatus as soon as they are generated in Mortgage Services, borrowers always have access to up-to-date information about their loans," the company said. FICS can be found online at http://www.loanware.com.

ComplianceKeeper.com, Hunt Valley, Md., has announced the release of what it describes as the first online system designed exclusively to help mortgage companies manage state regulatory requirements for licensing and educating mortgage professionals.Users of the new system can "instantly access detailed information on active and pending licenses in the company, including a profile of the individual holding the license and the number, type, and expiration date of the license," the data-tracking technology company said. An interactive desktop screen enables users to view data on the number of licenses that are 30, 60, and 90 days from expiration, and the system sends automatic e-mail alerts to notify customized lists about forthcoming license and education renewal deadlines, ComplianceKeeper.com said. The company can be found online at http://www.compliancekeeper.com.

The Miracle DocPrep platform of MRG Document Technologies, Dallas, is now available through a direct interface with BytePro, the latest version of Byte Software's loan origination system, according to MRG.The interface provides mortgage lenders and brokers with closing documents for prime and subprime loans, home equity lines of credit, option adjustable-rate mortgages, and other lending products, MRG said. When users request loan closing documents through the interface, the data are transferred to MRG and the document packages are prepared and sent back to the user, the company said. "This interface is a tool that enhances the lender's workflow process," said Terry King, group chairman of MRG. "Offering MRG's document preparation services through BytePro enables mortgage lenders to more efficiently request and deliver loan products to their customers." The interface was developed as part of a continuing alliance between MRG and Byte Software, based in Kirkland, Wash. The companies can be found online at http://www.mrgdocs.com and http://www.byte-cbc.com.

PNC Bank, a member of The PNC Financial Services Group Inc., has selected San Mateo, Calif.-based Dorado Corp.'s Dorado Unified Point of Sale as the bank's new wholesale home equity channel.PNC Bank, the nation's 15th-largest home equity lender, is developing a broker network across its consumer banking region. The Dorado Unified Point of Sale application, leveraging Dorado ChannelMaster and PriceMaster, will provide a network-based, on-demand avenue for PNC brokers to originate, price, and submit home equity loans and lines of credit at the point of sale. Dorado can be found on the Web at http://www.dorado.com.

New Century Financial Corp., Irvine, Calif., has announced the adoption of FraudMark, an application by BasePoint Analytics, to supplement the company's mortgage fraud prevention efforts.New Century, a real estate investment trust, said the agreement with BasePoint will allow the REIT to significantly improve its pre-funding fraud detection and prevention and reduce review costs for potentially fraudulent applications. New Century described FraudMark as an application scoring system that "combines the predictive power of loan applicant data with the proven pattern-recognition analytics of BasePoint's fraud modeling technology." BasePoint will also provide fraud consulting services. The companies can be found online at http://www.ncen.com and http://www.basepointanalytics.com.

Bankrate Inc., New York, has announced an agreement to acquire Wescoco LLC (d/b/a FastFind), a San Francisco-based aggregator of Internet leads for mortgages and other financial products, for $10 million in cash.Thomas R. Evans, president and chief executive officer of Bankrate, said the company plans to leverage its Internet traffic to enhance FastFind's lead-generation platform. "The online mortgage industry represents an enormous, emerging, and addressable market," Mr. Evans said. "We believe we are strategically positioned to take advantage of the shift of spending from traditional outlets to the Internet." Bankrate also announced the acquisition of MMIS/Interest.com, a publisher of mortgage guides based in suburban Chicago, for $30 million in cash. Bankrate can be found online at http://www.bankrate.com.

Digital Risk LLC, Dallas, and MortgageFlex Inc., Jacksonville, Fla., have announced an agreement to integrate Digital Risk's Integrity Verification Enterprise system with LoanQuest, the loan origination system from MortgageFlex.The companies said the new application gives MortgageFlex lenders and customers an automated system integrated into their desktop loan processing, providing fast and accurate verification of personal identity, income, occupancy, and collateral information. "As the residential real estate business has expanded in recent years, so have fraudulent attacks on lenders, surpassing the ability of existing tools to defend against them," said Lester Dominick, chairman and founder of MortgageFlex. "This integration will give lenders unique access to fraud prevention and loss mitigation solutions." Features include occupancy and instant income verification, as well as access to existing IRS and Social Security Administration data.

Ellie Mae has timed the 2.8 release of its Encompass loan origination system to incorporate the mandated 2006 version of Fannie Mae's 1003 loan application form.Unveiled at the Western Regional Mortgage Brokers Conference in Las Vegas, the newest version of Encompass features enhancements for new business development, loan processing, electronic document management, and administration. It also includes new prequalification and loan comparison tools, an employment verification service, and a simplified appraisal ordering function. Users can conduct a comprehensive prequal with a single form featuring "easy-to-interpret visual cues" showing whether the borrower is qualified or pending qualification, Ellie Mae said. The 2.8 release is scheduled to be available by the end of November. Ellie Mae received a 2005 Mortgage Technology commendation from Mortgage Technology magazine, a MortgageWire affiliate. The company can be found online at http://www.elliemae.com.

NetBank Inc., an Atlanta-based online bank, has reported a mortgage-related net loss of $1.4 million ($0.03 per share) for the third quarter, compared with net income of $4.0 million ($0.09 per share) a year earlier.NetBank said the results include a pretax provision of $3.5 million related to a group of conforming mortgages with an outstanding balance of $13 million. "The company believes certain misrepresentations may have been made by one or more of the parties involved during the loan application process," NetBank said. Mortgage production totaled $3.8 billion in the third quarter, a rise of 9.0% from that of the second quarter, the company reported. The performance of servicing assets went from a loss of $2.3 million in the second quarter to pretax income of $130,000 in the third quarter "as higher rates and improving valuations for mortgage servicing rights led to prior impairment expense recovery," NetBank said. The company can be found online at http://www.netbank.com.

Preferred Financial Group Inc., a nationwide direct lender with a wholesale channel based in Burlingame, Calif., and Shearson Home Loans, a retail mortgage brokerage based in Las Vegas, have announced a partnership aimed at expanding their loan volume and offering a broader range of services.Shearson said finding a partner that could manage the banking side of the business was a key factor in its decision, while PFG said it was looking for a strong player in the residential mortgage market. "PFG Inc. is committed to technology, with a solid infrastructure that is capable of handling a loan volume of increasing capacity," said Michael Barron, Shearson's chairman and chief executive officer. "As Shearson continues to expand and open new branches, the business partnership with PFG Inc. enables us to grow faster and stronger, while exceeding the expectations of our clients." PFG offers Web-based technology, in-house underwriting, document preparation, funding, and closing processes. Its wholesale channel, WLO, can be found online at http://www.wloconnect.com, and Shearson can be found at http://www.shearsonhomeloans.com.

Mortgage technology veterans Bill Rice and Jeff Bell have launched Kaleidico LLC, Flat Rock, Mich., to help speed the adoption of new technology by offering lenders "appliances" that they say will improve existing systems and processes.The first set of appliances includes icoSales, which automates lead generation and routing and gathers and distributes leads from major Internet providers; icoAsset, which streamlines due diligence, wholesale/correspondent lending, and secondary marketing optimization; and icoDeposit, which makes online deposit gathering and reporting an option for financial institutions of all sizes. (Kaleidico said "ico" is from Latin, meaning "to strike a deal.") "Rather than building costly and time-consuming end-to-end systems, we are offering a series of technology appliances that can be quickly integrated into existing infrastructures for immediate benefits," said Mr. Rice, who held senior credit, risk, and secondary strategic marketing posts at DeepGreen Financial and, more recently, Quicken Loans. Mr. Bell was the chief information officer who led the development of DeepGreen's Web-based home equity lending platform, according to Kaleidico.

ComplianceEase, a San Francisco-based provider of regulatory compliance and risk management systems, has signed a strategic partnership agreement with GMAC Residential Funding, Minneapolis.The partnership will establish an automated compliance application available in the marketplace by combining ComplianceEase's ComplianceAnalyzer with GMAC Residential's Assetwise Compliance Engine. GMAC Residential's lender partners will now be able to run audits on both applications simultaneously, addressing all federal, state, and municipal laws and regulations, as well as GMAC Residential's specific guidelines, the companies said. As part of the new alliance, GMAC Residential will integrate its technology platform with ComplianceAnalyzer, ComplianceEase's proprietary intelligent decisioning system. Both companies will jointly market the solution to GMAC Residential's approved sellers, as well as prospective customers. The companies can be found online at http://www.complianceease.com and http://www.gmacrfc.com.

Canadian technology vendor Filogix Inc. and Fidelity Information Services, a division of Fidelity National Financial Inc. based in Jacksonville, Fla., have partnered to deliver an integrated end-to-end mortgage processing system in an application service provider environment.Under this alliance, Filogix provides mortgage underwriters with the technology to source mortgage products and services, as well as the underwriting and processing technology necessary to complete the process. FIS provides the end-to-end servicing system, facilitating management of the entire mortgage process. In related news, Paradigm Quest, a Canadian financial institution, has signed on to implement the product. Filogix can be found on the Web at http://www.filogix.com, and FIS can be found at http://www.fnf.com, http://www.fntg.com, and http://www.fidelityinfoservices.com.

Fiserv Inc., Brookfield, Wis., has named Jeffery W. Yabuki president, chief executive officer, and a member of the board of directors effective on or before Dec. 1.Mr. Yabuki will succeed Leslie M. Muma, who is retiring as president and CEO but will continue in a consulting capacity to the company until June 30, 2006, and as a director until the 2006 Fiserv annual meeting. Mr. Yabuki joins Fiserv from H&R Block Inc., where he spent six years and served as executive vice president and chief operating officer since 2002. In that role he had oversight of the domestic and international tax businesses, e-commerce activities, and the financial services business units operating under the H&R Block brand, as well as marketing, information technology, compliance, and corporate development. He also served on H&R Block's Planning & Policy Committee. Fiserv can be found on the Web at http://www.fiserv.com.

Lancaster Mortgage Bankers, a wholesale lender based in Warren, N.J., is deploying Mozart AUS, an automated underwriting application by Overture Technologies, Bethesda, Md."We're leveraging Overture's Mozart AUS to produce our own proprietary underwriting engine for use within our website," explained Elliot Salzman, Lancaster's president and chief executive officer. "We expect to be able to increase volume by 20%-30% while keeping the same number of staff." Mozart AUS offers Lancaster the ability to automatically price, select, and underwrite all conforming and nonconforming loans, including alternative-A, subprime, and interest-only products. The application is expected to be fully operational by early 2006. Overture can be found on the Web at http://www.overturetechnologies.com.

SouthBanc Mortgage has selected the Platinum Data cascading automated valuation platform as a cost-saving tool for delivering property valuation reports.Herndon, Va.-based SouthBanc Mortgage is a subsidiary of SouthBank, a federal savings bank headquartered in Huntsville, Ala. SouthBanc Mortgage comprises 80 loan officers and originates various residential loan products throughout the United States. Platinum Data Solutions offers a configurable AVM platform that enables SouthBanc users to quickly reference previously ordered AVMs for any properties within their account. Platinum Data can be found online at http://www.platdata.com.