Mortgage technology

Customers of Prime Alliance, Tukwila, Wash., originated over $22.5 billion in loan volume in 2004, or about the size of the 11th largest U.S. retail mortgage lender.According to Prime Alliance, the company now has almost 40% of the total credit union market, nearly double last year's market share. "Our vision is to Web-enable a fragmented mortgage industry and process through strategic partnerships with key market aggregators," said Steve Mase, Dexma president. "The success of Prime Alliance and Prime Alliance Services Co. is indicative of what can be accomplished when we put our heads together with a forward-thinking business partner who's ready to seize a significant market opportunity." Prime Alliance, a partnership between Dexma and Boeing Employees' Credit Union, now comprises over 75 credit union and CUSO (credit union service organization) customers representing more than 400 credit unions. Prime Alliance can be found on the Web at http://www.primealliancesolutions.com, and Dexma can be found at http://www.dexma.com.

LoanPerformance, San Francisco, and Intelligent Results, Bellevue, Wash., have announced the introduction of ScoreText, a predictive modeling system the companies say has wide application for mortgage servicers.ScoreText integrates structured data with unstructured text data, enabling servicers to better understand and predict customer behavior in servicing and collection efforts, they said. "Today's best predictive models only incorporate about 20% of the available data," said Richard Harmon, senior vice president for scoring and analytics at LoanPerformance. "By exploiting the available unstructured data that makes up the other 80%, mortgage servicers can not only improve their ability to predict customer behavior, but can have a much better understanding of the key factors differentiating behavior." The companies can be found on the Web at http://www.loanperformance.com and http://www.intelligentresults.com.

Milwaukee-based eMagic.com has formed a strategic alliance with WellFound Decade, Jacksonville, Fla., to allow users to integrate the eMagic portal and their back-end systems.WellFound created a custom interface to eMagic to make it possible for users to integrate their back-end loan origination system with eMagic's portal of third-party services, eMagic said. The integration was conceived to create a more seamless end-to-end approach where information flows between the two systems without the need for rekeying, eMagic said. The companies can be found on the Web at http://www.wellfounddecade.com and http://www.emagic.com.

First Lenders Data Inc., an Austin, Texas-based technology, data, and bundled services provider, has formed an alliance with Western Reliance Corp., Portland, Ore., to provide bundled services to financial institutions.FLDI said it was chosen by Western Reliance to provide bundled services and is now providing its customers with credit reports, automated valuation models, insured AVMs, appraisals, flood certifications, property reports, legal and vesting reports, lien reports, and income verification through MorClose, a licensed version of FLDI's vendor management platform called FirstClose. Western Reliance is a provider of collateral protection insurance and tracking systems and ancillary insurance products to lenders. The companies can be found on the Web at http://www.fldi.com and http://www.westernreliance.com.

TA Associates, a Boston-based private equity and buyout firm, has announced the investment of $50 million in C&S Marketing, a provider of mortgage lending information and technology based in Sacramento, Calif.The investment represents a minority interest in C&S Marketing. "We have established a valuable and unique channel as a 'vendor-neutral' AVM provider, and we aim to become the dominant information portal for the mortgage lending community," said Steve Schroeder, C&S Marketing's chief executive officer. "We believe partnering with TA will help us achieve this goal and maintain our lead in providing customized best-of-breed solutions to our clients." The companies can be found online at http://www.ta.com and http://www.csmarketing.net.

The Real Estate Solutions division of Jacksonville, Fla.-based Fidelity National Financial Inc. has updated its TransactionPoint Suite, a Web-based real estate transaction management platform and ordering system.Transaction Point version 8.7, which includes an updated user interface, enables brokers to enter property data, add clients, create transactions, update activities, order services, upload documents, and share information throughout the life cycle of the real estate process, the company said. The system also helps brokers manage risk by standardizing processes and centralizing documentation. The FNF family of companies can be found on the Web at http://www.fnf.com and http://www.fidelityinfoservices.com.

PMAC, West Covina, Calif., has launched a website that provides information and services aimed at consumers, mortgage brokers, and other groups affiliated with the mortgage banking industry.The company said it has restructured its operations to focus on three key lending areas: wholesale, outsourced, and retail. "PMAC's Wholesale Lending Group is an exciting new venture for us in that we can now offer competitive loan programs," said Jon Magill, president and chief executive officer of PMAC. "Many of these programs are unique to PMAC and offered directly to mortgage brokers and third-party originators." The new website can be found online at http://www.pmac.com.

Roger Gudobba, senior principal for strategic business development at VMP Mortgage Solutions Inc., has been named chairperson of the eMortgage Alliance, replacing Dave Williamson of the Performance Group."Roger is a strong evangelist," said Ty Jenkins, founder and chief executive officer of DocuTech Corp. and a member of the eMortgage Alliance. "He's got the vision. Everything with e-forms, electronic delivery has been his strong point. He's carried that baton for years, and he'll be great for the eMortgage Alliance." Each chairperson holds the title for a single one-year term. The eMortgage Alliance is a consortium of companies that have assembled to promote standards-based electronic mortgage technology, systems, and best practices to encourage the industry to move toward the eventual acceptance of a complete electronic mortgage. The organization can be found on the Web at http://www.emortgagealliance.us.

First Line Data Inc., Boulder, Colo., has announced the launch of its exclusive Alert! Summary and Firstline Score on the company's Broker Verification Review reports.The enhancements provide wholesale mortgage lenders the decision-support information needed to more quickly determine the approval of a third-party originator, the company said. Alert! messages are for material discrepancies between submitted information and records found or any derogatory information found within a BVR report. An Alert! summary is also provided on the front page, along with the Firstline Score&trade, which uses a risk-based scoring model that calculates the combined weighted average of all Alerts found in the report. "A First Line Data BVR report in a file will quickly demonstrate to a third party the procedures employed in determining the initial approval of a business partner," said Nancy Cowley, senior account executive at First Line. "Our reports provide clear evidence of a sound due-diligence process." First Line can be found online at http://www.firstlinedata.com.

Laguna Hills, Calif.-based QuestSoft, a provider of Home Mortgage Disclosure Act and Community Reinvestment Act compliance systems and geocoding services for lenders, has announced the release of Instant Geocoder 1.8 Plus.Instant Geocoder uses census tract demographic information to help lenders and brokers determine a potential loan's HMDA and CRA compliance value and marketability before issuing a loan quote, QuestSoft said. Instant Geocoder 1.8 includes the most recent postal and census data along with new search and cross-reference features. The software enables users to cross-reference cities with corresponding ZIP codes even in the event of a misspelling or incorrect ZIP code entry, the company said. Instant Geocoder is available in both Windows-based and Extensible Markup Language-based versions and uses the same data set for both products. QuestSoft has also enhanced the census demographic data available with the latest version. QuestSoft can be found on the Web at http://www.questsoft.com.

Hyland Software Inc., Westlake, Ohio, and New York-based Bisys have formed a strategic alliance, positioning Hyland's OnBase as one of Bisys's preferred enterprise content management systems.OnBase helps Bisys client banks electronically capture, store, and manage documents, including application files, reports, forms, and statements. Its integration with Bisys's core processing, loan origination, and CRM systems allows financial institutions to share information electronically across the enterprise. Hyland can be found on the Web at http://www.onbase.com, and Bisys, a provider of outsourcing systems for the financial services sector, can be found at http://www.bisys.com.

Houston-based Credit Union Acceptance Corp. has implemented APPRO Systems Inc.'s automated decisioning system, LoanCenter Consumer.The application and decisioning process was completely manual before using this application, CUAC said. Dealers were required to fax in applications, which were manually entered and decisioned. CUAC said it worked with seven credit unions in the Houston area before implementation of the new system and funded approximately 50 loans per month. Now it works with 60 credit unions in eight states and funds more than 3,500 loans per month, the company reported. Approximately 88% of applications submitted to CUAC in 2004 were input via the new application. CUAC can be found on the Web at http://www.cuac.net, and APPRO can be found at http://www.approsystems.com.

American Capital Strategies Ltd. has entered into an agreement to act as an equity partner and majority shareholder of eLynx Ltd., a Cincinnati-based provider of secure electronic document delivery services to the mortgage industry.According to the agreement, eLynx will retain its name, corporate identity, and current staff and continue to operate from its Cincinnati headquarters. "This partnership provides eLynx with the financial strength and business resources to broaden our service offerings and continue our growth," said Phil Huff, chief executive officer and co-founder of eLynx. According to ACS managing director Robert Klein, the company will "work with eLynx so that it has the resources to develop products and services in advance of customer needs." eLynx can be found on the Web at http://www.elynx.com.

Entyre, a provider of Web-based mortgage closing systems, and LandAmerica OneStop, a provider of Web-based real estate transaction services, have announced a partnership under which they will create a "dynamic HUD" form for mortgage closings.Under the partnership, Moon Township, Pa.-based LandAmerica will integrate its closing applications with the eMortgage-X4 system of Ann Arbor, Mich.-based Entyre to create the HUD form. For the first time, all the information needed for a final HUD form (required for mortgage closings) will reside in one system, eliminating the need for duplicate data entry and labor-intensive post-closing reviews, the companies said. The dynamic HUD form "will allow us to streamline our mortgage closing process, and we anticipate that the cost savings that will be realized for large mortgage lenders and others will be significant," said Brandon Barnett of LandAmerica OneStop. The companies can be found online at http://www.entyre.com and http://www.landam.com.

Livonia, Mich.-based Dynatek Inc. has executed its one millionth transaction using the MORvision Plug-In Partner Network.A live countdown had been available on the company's customer website, where MORvision users were invited to participate in the milestone. The MORvision Plug-In Partner Network has grown substantially since its inception in February 2000. The company currently records an average of 84,000 Plug-In transactions per month. Many Plug-Ins have experienced even higher growth rates, such as First American's Flood Plug-In, which grew by 360% between January and October of this year, for example.

Option One Mortgage Corp., Irvine, Calif., and ValuAmerica, Pittsburgh, have announced an agreement to develop a new vendor management company in Tampa, Fla.The new company, a wholly owned subsidiary of Option One, is named AcuLink Mortgage Solutions LLC. It will initially provide settlement services, including title and closing services, to H&R Block Mortgage Corp., an Option One subsidiary that originates residential mortgage loans directly to consumers nationwide. During a pilot test of the new program, title commitments were delivered in an average of two days, title conditions were cleared in another two days, and final title policies were received within two days of funding, the companies said. ValuAmerica, a provider of settlement services and vendor management technology, will develop work processes and provide turnkey recruiting, training, licensing and other consulting services. Option One can be found online at http://www.optiononemortgage.com.

Wolters Kluwer Corporate & Financial Services, Amsterdam, has reported the acquisition of PCi Corp., a Boston-based provider of lending compliance systems, for an undisclosed amount.The Netherlands-based Wolters Kluwer Corporate & Financial, a division of Wolters Kluwer NV, said the acquisition expands the line of compliance systems offered by its subsidiary Bankers Systems Inc. and Bankers Systems' subsidiary, VMP Mortgage Solutions Inc. PCi Corp. will continue to operate in Boston, as a subsidiary of Bankers Systems. PCi's systems relate to fair-lending laws, the Community Reinvestment Act, the Home Mortgage Disclosure Act, and flood hazard determination, among other things. "The focus on Fair Lending, CRA, HMDA, and predatory-lending compliance is increasing, and failure to deal with the issues can result in stiff fines and penalties," said Bob White, president and chief executive officer of Bankers Systems and Wolters Kluwer Financial Services. "PCi Corp. understands these complex compliance issues better than any provider in the industry." The companies can be found online at http://www.wolterskluwer.com, http://www.bankerssystems.com, and http://www.pciwiz.com.

Meanwhile, panelists at the Mortgage EC Conference in Las Vegas discussed what they see as the next wave of mortgage technology.A spokesman from Nexstar Financial Corp. said paperless loan folders, Web services, and rules-based processing are the new buzzwords in mortgage technology for 2005. A representative of Fannie Mae's electronic business division offered another perspective. "There's increased emphasis on the back end of the process, workflow, and the need to eliminate re-keying," said Andreas Suma, senior manager for technology sales and consulting in Fannie's eBusiness division. "Also, new engines based on individual lender rules that go across the enterprise are what lenders are looking for." Another panelist said 25% of lenders are in the market for a new loan origination system, a situation that was deemed likely to advance new technologies like service-oriented architecture, the Mortgage Industry Standards Maintenance Organization, and the realization of a complete electronic mortgage.

Internet lenders need to adopt new consumer-friendly policies to capitalize on the new online borrower, a keynote speaker told the 6th Annual Mortgage EC Conference Dec. 7 in Las Vegas.Catherine Muriel, chief marketing officer at E-Loan, noted that the average person spends 12.5 hours a week on the Internet and that 80% of Internet users have been on the Net for over three years. In order to attract this consumer, Ms. Muriel argued that online lenders have to provide a more detailed pre-approval letter that actually means the consumer is pre-approved, communicate more often with the consumer, and provide each consumer with a personal loan adviser for the entire lifecycle of the loan. In addition, they should give the consumer real closing fees that don't change, and keep the scheduled closing date without any adjustments, she said. "The Internet has settled and is no longer a gamble," Ms. Muriel concluded. "It's a great time to be an online lender."

"Leverage technology to improve the customer experience, not just the back-office." That was the message ABN Amro executive vice president William Newman gave attendees in his keynote address at the Sixth Annual Mortgage EC Conference in Las Vegas."We spend too much time managing the business that comes through the door and spend too little effort and money acquiring new clients and improving their experience," Mr. Newman said. Though ABN Amro and its Mortgage.com division have led the way in offering one-fee mortgages and monitoring the consumer experience, he said that message applies to his company as well.