Mortgage technology

Technology has increased volume and efficiency in the subprime market, WMC Mortgage Corp. president Amy Brandt told attendees Monday at the Subprime Lending Symposium in San Francisco.WMC, an online wholesale lender based in Woodland Hills, Calif., was recently acquired by General Electric's consumer finance division from Apollo Management LP. Having a quick, front-end service combined with a customer service campaign was crucial in making WMC's volume rise in recent years, said Ms. Brandt, who was a keynote speaker at the symposium. "Your business has to evolve. .... All of your systems need to work together before funding the loan," she said. "Integrate technology, but with a human process." For example, Ms. Brandt suggested taking five minutes to call a broker to let him know his loan application has been received.

Countrywide has chosen Calabasas, Calif.-based Sysdome Inc.'s Third Party Review product to help streamline its broker approval and maintenance process.Specifically, Sysdome's TPR tool verifies broker application information against Sysdome's databases and other public and nonpublic data sources and presents its findings in an exception-based report. As part of the agreement, Countrywide would receive continuous broker updates as well as semiannual renewals. Sysdome can be found on the Web at http://www.sysdome.com, and Countrywide can be found at http://www.countrywide.com.

Home Counselor Online, a Spanish-language technology tool aimed at promoting homeownership among Hispanics, has been launched by Fannie Mae.The free Web-based tool will help counseling agencies, nonprofit groups, and other entities guide potential homeowners through the mortgage process via user-friendly counseling support, Fannie Mae said. It also enables lenders to track the progress of potential borrowers. "Home Counselor Online is part of Fannie Mae's efforts to help housing partners modernize or transform housing counseling practices, in addition to moving the minority homeownership rate," said Fannie Mae. "With the launch of its English version in November 2001, more than 1,157 counseling agencies and lender offices have set up this technology tool, with over 103,221 clients served by them." Fannie Mae can be found online at http://www.fanniemae.com.

Lending Tree Inc., Charlotte, N.C., has reported that General Motors Acceptance Corp. has dismissed a recently filed complaint alleging that LendingTree was attempting to trade on GMAC's reputation by using or appropriating GMAC's trademark as a domain name.LendingTree quoted GMAC counsel Charles H. Ellerbrock as stating, "Once we learned that LendingTree had not used 'GMAC' in an Internet domain name, we withdrew the complaint. LendingTree was very gracious about the whole thing." LendingTree, an operating business of IAC/InterActiveCorp., can be found online at http://www.lendingtree.com.

Stewart Mortgage Information, a Houston-based wholly owned subsidiary of Stewart Information Services Corp., has announced the formation of Stewart Default Solutions Inc. to offer default management and technology systems for the mortgage and consumer services industry.C. Alan Paylor, who recently joined SMI, will serve as chief operating officer of the new company. The company cited the most recent Mortgage Bankers Association delinquency survey as showing that 1.29% of one- to four-unit residential properties at the end of the fourth quarter of 2003 were in foreclosure, a 5-basis-point jump from the third-quarter rate of 1.24%. The company said it will change its default workflow processes and add new technology. SMI can be found online at http://smi.stewart.com.

ABN Amro Mortgage Group has rolled out an electronic mortgage broker tool to the market at large, and the company has more broker-oriented technology improvements in the works, AAMG executives told reporters at the National Association of Mortgage Brokers annual convention.Pricing Tool Only, which enables brokers to select their own settlement service providers and negotiate the associated settlement services costs, had been undergoing testing by AAMG before the marketwide rollout. In addition to expanding the availability of the tool, AAMG said it plans to make the management of settlement service providers easier for brokers. Company executives said this and other improvements to the company's automation are scheduled to be launched by the end of the year.

Oklahoma City-based a la mode inc. has debuted Mortgage XSites -- websites containing business tools to generate leads and cut paperwork, among other things -- at the annual convention of the National Association of Mortgage Brokers.The sites are available for one annual fee, with "no nickel-and-dime add-ons or surprises," the company said. Among the features available on the sites are: DirectFax, which converts faxed tax returns and other paperwork to digital files; FlexApp 1003s, which the company says give small offices and single mortgage brokers the online application functionality of big lenders' sites; daily news feeds; and mortgage calculators. "MortgageXSites are the final piece of the online mortgage revolution," said Brad Eaton, the company's project manager for the sites. "Previously, only the biggest originators and niche lenders whose entire business model relied on the Internet channel had the interactive technology to allow borrowers to complete applications electronically." The company and the new websites can be found online at http://www.alamode.com and http://www.mortgagexsites.com.

ARC Systems, a mortgage automation provider based in Austin, Texas, has announced the release of Loan Finder Express, an underwriting tool designed for mid-tier lenders and brokers.ARC termed the product "a comprehensive, browser-based product eligibility engine [that] integrates credit to deliver a fully adjusted price." The system offers lenders "a fast, easy way to custom-match borrowers with loan programs ranging from conforming to nonprime -- even if their originators have limited experience with a product category," the company said. The release was announced at the annual convention of the National Association of Mortgage Brokers in Salt Lake City. The company can be found online at http://www.arcsystems.com.

DocuTech Corp., a provider of compliance services and documentation technology, has debuted its new PowerLend product at the National Association of Mortgage Brokers conference in Salt Lake City.PowerLend is a Web-based system that integrates a broker's closing software and identifies refinancing options that can be offered to borrowers for their consumer loans. The tool is designed to give brokers the ability to identify future lending opportunities. DocuTech can be found on the Web at http://www.docutechcorp.com.

Calabasas, Calif.-based Sysdome has announced the release of its new BrokerScore product designed to detect broker fraud.BrokerScore is a fraud prevention tool that reviews originators each month, performing audits and background checks on mortgage brokers and affiliated groups on behalf of lenders. BrokerScore rates individual brokers with a "score" that is shared with both the broker and the lender, Sysdome said. Brokers can contest the information provided and use their score as a marketing tool as well. Sysdome is in talks with the National Association of Mortgage Brokers to use the product as the basis of a national registry that would track the performance of brokers across the country in an effort to cut down on broker fraud. The product announcement was made at the NAMB annual convention in Salt Lake City. Sysdome can be found on the Web at http://www.sysdome.com.

Mark Lefanowicz, chief operating officer of E-Loan Inc., Pleasanton, Calif., has been promoted to president of E-Loan and will retain his position as COO.Mr. Lefanowicz has been E-Loan's COO since January, and has been a company director since October 2002. The company also announced the appointment of Susan Catherine Muriel as its new chief marketing officer. She joins E-Loan from Upromise Inc., a private college funding program. E-Loan, a consumer-direct lender that offers mortgage, auto, and home equity loans, can be found online at http://www.eloan.com.

Wachovia has signed up to participate on Wayne, Pa.-based GHR Systems' Web-based origination marketplace, BrokerOneSource.There are currently about 2,000 brokers conducting business on the site, and GHR says 100 to 200 new brokers sign up each day. At present, 13 lenders participate. GHR can be found on the Web at http://www.ghrsystems.com.

Genworth Financial Inc., Raleigh, N.C., has announced the introduction of Underwrite Express, an online service that the company says combines the benefits of two of its mortgage technology platforms.The service integrates AU Central, Genworth's proprietary automated underwriting engine, with Doc Central, its online platform for creating and sharing loan documents, the company said. "We designed this platform to serve the needs of mortgage originators who want quicker underwriting turnaround," said Kevin Schneider, Genworth's president for U.S. mortgage insurance. "Underwrite Express meets their needs by seamlessly integrating two proven platforms that already are being used successfully by originators nationwide." Genworth can be found online at http://www.genworth.com.

Myers Internet has released a new website product that enables mortgage originators to originate mortgages by marketing to the for-sale-by-owner market."Mortgage originators are increasingly looking for new channels to originate mortgages," Myers chief executive officer Warren Myer said at the 2004 National Association of Mortgage Brokers Convention in Salt Lake City. Originators pay a setup fee of $199 and a monthly fee of $39. The website can be up and running in a week. Myers can be found on the Web in http://www.myers.com.

Calyx Software, San Jose, Calif., has decided to drop its request for an injunction against Ellie Mae, Dublin, Calif.Calyx has sued Ellie Mae, alleging that the company committed copyright infringement by copying the look and feel of its Point product with the release of Encompass. To ensure that Ellie Mae doesn't sell Encompass until the case is decided, Calyx petitioned the court for an injunction. Calyx now says it was unable to get a proper discovery period and has therefore dropped the request until discovery can be conducted, at which time it reserves the right to reinstate the request. On the other side, Ellie Mae chief executive Sig Anderman called the entire request "frivolous." Mr. Anderman maintained that Calyx withdrew its request because Ellie Mae was going to ask the court to impose sanctions on Calyx should the court decide in Ellie Mae's favor. The first hearing in the copyright infringement case is scheduled for late this month.

DocuTech Corp., Idaho Falls, Idaho, has launched a new interactive Lender Advocate website that it describes as a one-stop compliance and educational center for the mortgage industry.The site enables visitors to get current information about proposed state and federal laws while those laws are still in the making. For each pending law or regulation monitored, the site provides a general summary of the proposed law and a link to the legislation in its present form (with amendment history marked and noted). As a key interactive feature, the site provides a poll of visitor response to the pending legislation and an option for the visitor to add commentary. DocuTech will then transmit visitor responses about the proposed legislation to state officials and lawmakers. The new website can be found at http://www.lenderadvocate.com.

LandAmerica Financial Group Inc., Richmond, Va., has announced an agreement to integrate its credit reporting subsidiary, Info1 Holding Co., into Freddie Mac's automated underwriting system.Under the arrangement, Info1 is offering credit reporting services to mortgage lenders and mortgage brokers using Loan Prospector. Info1 president Ken Goins said the agreement will for the first time enable Freddie Mac "to access credit reports previously ordered by its clients outside of Loan Prospector by using an Info1 reference number." The companies can be found online at http://www.landam.com and http://www.freddiemac.com.

The senior debt rating of Marsh & McLennan Cos. Inc., New York, has been placed on Rating Watch Negative by Fitch Ratings in the wake of an announcement that the company will acquire Kroll Inc., a risk consulting company that serves the mortgage industry and others, for $1.9 billion.The rating agency attributed the action to "uncertain financing plans," saying that the debt rating would likely be lowered if the acquisition is funded chiefly with debt. The Kroll acquisition is a significant move for MMC, as Kroll has itself acquired The Credit Network and Factual Data in the past two years, making it a leader in the risk mitigation, credit, and fraud arena within the mortgage technology industry. For the past three years, Mortgage Technology magazine, a sister publication of Mortgage Wire, has featured Kroll in its list of the industry's top 100 mortgage technology vendors. Fitch can be found on the Web at http://www.fitchratings.com.

Marsh & McLennan Cos. Inc., New York, will acquire Kroll Inc., New York, as part of a strategic move to broaden its risk and insurance services and enhance its market share in risk management services.Kroll Inc. acquired Factual Data in August 2003, and the Credit Network in March 2004. Under the definitive agreement, MMC will acquire Kroll in an all-cash, $1.9 billion transaction in which Kroll shareholders will receive $37 for each outstanding share of Kroll common stock they own, Kroll said. The price to be paid by MMC represents a 31.7% premium over Kroll's closing stock price of $28.10 on the Nasdaq National Market on May 18. The deal was unanimously approved by both MMC's and Kroll's board of directors. Upon completion of the transaction, Kroll will become part of Marsh Inc., MMC's risk and insurance services subsidiary, Kroll said. Jules Kroll, founder and executive chairman of Kroll, will be named a vice chairman of Marsh Inc. as part of the agreement. The companies can be found on the Web at http://www.mmc.com and http:// www.krollworldwide.com.

First Magnus Financial Corp., a privately held mortgage banking company in Tucson, Ariz., has selected SharperLending LLC, Spokane, Wash., to support its wholesale and correspondent divisions.SharperLending is a Web-based platform that allows lenders to order, store, and manage mortgage products from multiple vendors at a single point of entry. As part of the agreement, First Magnus will access SharperLending's platform on a private-label basis. First Magnus' users will interact with the SharperLending platform through a Web-based interface, offering flood, credit, and insurance rates in one bundle. The companies can be found on the Web at http://www.firstmagnus.com and http://www.sharperlending.com.