Mortgage technology

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.

The Mortech 2005 study forecasts that mortgage industry technology expenditures for 2005 will record a "very healthy" 8% increase over those of the previous year, to $3.6 billion.This 18th Mortech study finds mortgage lenders optimistic about expanding their businesses and heavily targeting subprime borrowers as they adopt management-by-modeling capabilities for fraud detection and collateral valuation. Mortech principal Jeff Lebowitz finds lenders broadly focused on reducing human interaction with loan files to reduce errors and shorten cycle times in mortgage originations. Guilford, Conn.-based Mortech LLC publishes its study annually based on scientific surveys of over 300 lenders. The company can be found on the Web at http://www.mortech-llc.com.

Flagstar Bank, Troy, Mich., has announced the general availability of its Digital Document Transfer platform and specification for electronic document exchanges through six mortgage technology companies.The six companies partnering with Flagstar are Advectis Inc., Investor Purchase and Delivery Services Inc., Pyramid Solutions Inc., Stewart Mortgage Information, Tradewinds Mortgage Document Preparation Co., and VirPack. The partners have enhanced their electronic document management products or services to allow for the creation or acceptance of SMART (securable, manageable, archivable, retrievable, and transferable) documents and electronic packages that conform to the DDT specification, Flagstar said. The specification is based on the SMART document format established by the Mortgage Industry Standards Maintenance Organization. Flagstar can be found online at http://www.flagstar.com.

MBS ProClose Inc., a provider of mortgage closing document services and technology based in McLean, Va., has announced the completion of a MISMO-compliant print engine with a complete library of processing and closing documents.The ProClose Gold option provides access to the document library from within a lender's enterprise loan origination system, keeping documents and data within their control, the company said. "Lenders using ProClose Gold will have a single source of printing for all their document needs, providing maximum efficiency and cost effectiveness to improve the bottom line," MBS ProClose said. The announcement was made at the Mortgage Bankers Association's 92nd Annual Convention and Expo in Orlando, Fla. The company can be found online at http://www.proclose.com.

TransUnion Settlement Solutions, Chicago, has announced the availability of fraud and identity management products to the mortgage industry at the MBA's annual convention in Orlando.To mitigate occurrences of fraud, mortgage lenders can integrate TransUnion's fraud and identity management solutions directly into their loan origination system and automated underwriting systems, the company said. Some of the systems offered are borrower identification, loan data verification, and collateral valuation and property services. The systems leverage multisource databases to verify and authenticate personal information on a borrower's mortgage application. The company's Irregular Sales Indicator alerts lenders when a property has an irregular sale price and provides a history of sales transactions for the neighborhood. Additionally, TransUnion's Collateral Market Value verifies a customer-estimated value or an appraised value in a quality-control environment. TransUnion also offers mortgage lenders comprehensive fraud response services in the event of a database compromise.

GMAC Mortgage Corp., Horsham, Pa., has announced that it is the first investor in the mortgage industry able to purchase a correspondent loan with an electronic note, complete the sale of the loan on the secondary market, and service the eNote.Under a licensing agreement with Document Processing Systems Inc., GMAC Mortgage and GMAC Bank will use eMortgage Studio software to interface with the MERS eRegistry, the electronic system that maintains eNote information. "Servicing an eNote is an enormous first step to originating and servicing electronic mortgages," said Joanne Wight, vice president of correspondent lending operations at GMAC Bank. "Not only do [GMAC Mortgage] and GMAC Bank have an immediate ability to participate in the eMortgage marketplace, we can also offer a solution for lenders seeking secondary-market investors who are equipped to handle eNotes."

Fidelity National Financial Inc., Jacksonville, Fla., discussed its recently launched DecisionStream product during a press briefing at the Mortgage Bankers Association annual convention in Orlando.According to Al Verkuylen, senior vice president of development and strategy for FNF subsidiary Lender's Services Inc., DecisionStream takes the data from the various parts of FNF and brings them out to the point of sale. This allows originators of refinance and home equity transactions to decide early in the process whether it is worthwhile to invest in the full-scale mortgage settlement package. Another benefit is that with bundled services as part of the origination process, DecisionStream provides guaranteed quotes for settlement services, he said, allowing originators to give a definitive price to their customer. With Real Estate Settlement Procedures Act reform expected to include a guaranteed mortgage package, this is a benefit, Mr. Verkuylen said.

Mortgage Technology magazine, a MortgageWire affiliate, announced the 2005 winners of its annual tech awards Sunday evening at the Mortgage Bankers Association's 92nd Annual Convention and Expo in Orlando, Fla.WellFound Decade was the winner of this year's 10X Award to a company using technology to achieve an exponential impact on mortgage lending. Advectis Blitzdocs won the Fix-It Award, which goes to a company offering a technology tool that fixes a particular problem. Dynatek won the Help Desk Award for a company offering exemplary technical support and customer service. Scott Happ of Mortgagebot took home the new Lasting Impact Award, which goes to an individual, company, or group whose earlier efforts have had a lasting impact on mortgage industry technology. This year's Outstanding Mortgage Website Award went to No Red Tape Mortgage. The Steve Fraser Award, which goes to an outstanding mortgage technology innovator, visionary, or evangelizer, was presented to Ruth Thompson of Desert Document Services. And Prime Alliance Solutions Inc. won the Synergy Award for a technology initiative or alliance that advances the cause of seamless end-to-end e-commerce. More information about the awards can be found online at http://www.mortgage-technology.com.