Mortgage technology

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.

San Jose, Calif.-based Calyx Software and Ellie Mae, Dublin, Calif., have resolved their dispute in Calyx's lawsuit against Ellie Mae.In a joint statement, both companies described the settlement as "mutually beneficial in allowing both companies to focus on serving their respective customers." As part of the confidential settlement, Ellie Mae agreed to pay Calyx an undisclosed sum. The companies added that "Calyx and Ellie Mae are distinct companies, each with their own products and services to offer to the mortgage industry. Any confusion in the marketplace regarding this distinction is not desirable. Certain statements attributed to Ellie Mae in the past implying affiliation between Ellie Mae and Calyx have been inaccurate." The companies can be found online at http://www.calyxsoftware.com and http://www.elliemae.com.

IndyMac Bancorp Inc., Pasadena, Calif., the holding company for IndyMac Bank FSB, has reported earnings of $79.3 million ($1.18 per share) for the third quarter under generally accepted accounting principles, compared with $49.7 million ($0.78 per share) a year earlier.IndyMac produced a record $17.0 billion of mortgage loans in the third quarter, up 64% from the level of a year earlier, the company said. "Taking out the $0.05 per share costs related to the Gulf Coast hurricanes, IndyMac's earnings would have been $1.23 per share, our best ever on an operating basis, exceeding the $1.21 per share operating run rate we reported last quarter," said Michael W. Perry, IndyMac's chairman and chief executive officer. The mortgage pipeline totaled a record $8.9 billion as of Sept. 30, up 39% from that of a year earlier, the company said. IndyMac can be found online at http://www.indymacbank.com.

Fiserv Lending Solutions, Brookfield, Wis., has announced that it is incorporating electronic document presentment and signature and the automatic scheduling of closings into its UniFi PRO Mortgage eX loan origination system.The company said the system will enable lenders to electronically present loan documents directly to borrowers and closing agents via a secure website and allow borrowers to sign their loan documents online. John Tenuta, division president of Fiserv Lending Solutions, said UniFi PRO's electronic processes are designed to protect privacy and ensure security, using encryption and multiple layers of authentication. "With this integration, Fiserv delivers single-vendor access to electronic processes directly through the loan origination system," Mr. Tenuta said. Lenders previously required "extensive integration of multiple providers and disparate technology" to provide the same functionality, Fiserv said. The company also announced that Mid America Bank is now leveraging the UniFi PRO system's integration of the Nautilus Enterprise Content Management system to compress loan processing time. Fiserv said the bank is now able to obtain an appraisal from an outside appraiser in minutes instead of the 24-48 hours formerly required. In other Fiserv news, the company said its MortgageServ loan servicing system has been instrumental in enabling GMAC Mortgage to expand its subservicing relationships by 50% over the past year. Fiserv Lending Solutions can be found online at http://www.fiservlendingsolutions.com.

The Mortgage Bankers Association has released a white paper encouraging mortgage industry institutions to protect personal information and recommending steps to ensure its protection.The white paper, "Protecting Personal Information: The Good, the Bad, the Ugly," discusses the benefits of identifying, assessing, and protecting personal information and the implications of failing to do so. "This white paper will help firms that collect consumer-based personal information to be proactive in safeguarding it and establishing good, trusting relationships with customers," said Kieran Quinn, the MBA's vice chair and chairman of Column Financial Inc. In addition, the MBA said the Information Security Workgroup of the Mortgage Industry Standards Maintenance Organization, a nonprofit subsidiary of the association, will issue a follow-up white paper that is more technical in nature. The MBA can be found online at http://www.mortgagebankers.org.

Thornburg Mortgage Inc., Santa Fe, N.M., and Lewtan Technologies Inc., Waltham, Mass., have announced the launching of a Thornburg website on mortgage-backed securities that uses Lewtan's ABS Discloser analytic tool.The website provides detailed collateral-level performance data for $13 billion in Thornburg MBS transactions, the companies said. The new site also incorporates ABS Discloser's static pool tracking capabilities that reveal how delinquencies, losses, and prepayments develop over time for a discrete group of loans. The new website can be accessed by selecting the MBS Performance tab at http://www.thornburgmortgage.com. Lewtan can be found online at http://www.lewtan.com.

The first version of an electronic mortgage guide has been released by the Mortgage Industry Standards Maintenance Organization, a not-for-profit subsidiary of the Mortgage Bankers Association.Version 1.0 of the MISMO eMortgage Guide "is intended to be an executive-level guide addressing all aspects of eMortgage implementations -- key concepts, benefits and ROI, legal background, and industry best practices for the various steps of an e-mortgage implementation," said Igor Derensteyn, vice chair of MISMO's eMortgage Workgroup and senior vice president of e-mortgage technologies at Countrywide. The guide provides an overview of e-mortgages, including key industry standards, the legal framework, guidance for best practices, and sources of additional information. The product was developed by the eMortgage Workgroup, which was established in January 2001 to develop standards, specifications, and guidelines for paperless mortgages that correspond to federal legislation enacted in 1999 and 2000. MISMO can be found online at http://www.mismo.org.

GMAC Residential Funding, Minneapolis, has entered into an agreement with ComplianceEase that will integrate GMAC Residential Funding's Assetwise Compliance Engine with ComplianceEase's ComplianceAnalyzer.The companies said the integration will create "one of the most comprehensive" compliance systems available. "In addition to auditing loans addressing certain federal, state, and local mortgage loan laws, mortgage lending partners will be able to evaluate their loans against GMAC Residential Funding's specific guidelines regarding 'high-cost' or similarly designated mortgage loans prior to closing the loan," GMAC Residential said. GMAC Residential is a unit of Residential Capital Corp. ResCap and Compliance Ease can be found online at http://www.rescapholdings.com and http://www.complianceease.com.

Kroll Factual Data Inc., Loveland, Colo., and Stewart Mortgage Information Co., Houston, have announced an agreement to integrate Kroll's operations with Stewart Mortgage's title insurance products and services.The technology interface agreement will give Kroll Factual Data, a subsidiary of the Kroll Inc. global risk consulting company, a full range of title products and related mortgage settlement services, the companies said. Under the agreement, Kroll clients will be able to initiate title orders through its Web-based technology platform. The companies can be found on the Web at http://www.krollfactualdata.com and http://www.stewart.com.

The first MISMO Staff Appreciation Award has been presented to Ted Adams, director of industry standards at Freddie Mac and chair of the Core Data MISMO Workgroup.Gabe Minton, vice president of industry technology at the Mortgage Bankers Association, lavished praise on people like Mr. Adams during the presentation at the 92nd annual MBA convention. "We would not be where we are today without these heroes," he declared. The award is hand-picked and ratified by the board of MISMO -- the Mortgage Industry Standards Maintenance Organization -- to recognize a member that has contributed to the standards effort above and beyond the call of duty. Next year, two staff appreciation awards will be given out, one for residential and the other for commercial. MISMO can be found online at http://www.mismo.org.

Dynatek, an origination vendor based in Livonia, Mich., has announced that it has received credit response and reporting certification from the Mortgage Industry Standards Maintenance Organization.The compliance program was developed to demonstrate which technology vendors are truly compliant and which just say they are. As part of a panel at the Mortgage Bankers Association's 92nd annual convention, the MBA's vice president of industry technology, Gabe Minton, told the crowd that if a vendor says it is compliant, but its name is not on the MISMO website, then the certification is pending at best. At worst, the vendor is misleading the industry into believing it is compliant. As the compliance program expands, more certifications will be developed to test other parts of the process beyond credit and mortgage insurance. Dynatek can be found on the Web at http://www.dynatek.com.

Cincinnati-based eLynx Ltd., a provider of electronic information management systems for the financial industry, has announced the introduction of a service designed to expedite the workflow for creating and reviewing HUD-1 settlement sheets.HUD-1 Check "virtually eliminates discrepancies and errors associated with the HUD-1 documents by providing a simple and secure interface which allows lenders and closers to review, correct (if needed), and approve HUD-1 statements online in a matter of minutes without incurring the costs or delays associated with paper, printing, and faxes," eLynx said. The new service creates an audit trail of each transaction and provides settlement agents with verified HUD-1 acceptance before closing. The announcement was made at the Mortgage Bankers Association's annual convention in Orlando, Fla. The company can be found online at http://www.elynx.com.

The latest version of LoanQuoter, the online origination service of Mishawaka, Ind.-based Data-Vision, will automatically feed back the Desktop Underwriter stipulations complete with a brandable website and recommendations on how to proceed.The new online tool also uses Fannie Mae's revised 1003 application. In addition, it includes action log viewing, greater control via more drop-down menus, increased system variables, and enhanced broker or correspondent upload functionality, the company said. Data-Vision made the announcement at the Mortgage Bankers Association's annual convention in Orlando, Fla. The company can be found on the Web at http://www.d-vision.com.

A partnership between Dublin, Calif.-based Ellie Mae and Miami-based E-Ops has formed the Encompass Processing Network to allow users to completely outsource loan processing.Ellie Mae said it believes the industry needs to focus more on volume and productivity and less on technology, and therefore more companies will be interested in outsourcing as much of the process as possible so they can concentrate on their core competencies of lending and generating business. Processors will submit a loan to E-Ops for processing seamlessly through Encompass in two mouse clicks. All relevant data and documentation will be added for processing, the brokerage will get e-mail status updates, and the completed loan will be automatically fed back to Encompass at the end of the mortgage cycle, Ellie Mae said. The companies can be found online at http://www.elliemae.com and http://www.eops.cc.