Mortgage technology

LenderTechnologies Corp., a subsidiary of the Mortgage Bankers Association of America, has announced the release of an Internet-based customer information security service for financial institutions.The service, ProtectInfo, was created in response to the information security requirements imposed on such institutions -- including mortgage bankers and brokers subject to regulation by the Federal Trade Commission -- by the Gramm-Leach-Bliley Act and subsequent regulations, the MBA said. The ProtectInfo website features products and services designed to aid in developing such customer privacy programs. Among the services offered by ProtectInfo are an online Compliance Assessment Tool for measuring compliance with the FTC's Information Safeguards Rule; and SafeGuardian, Web-based software that will help companies develop a customer information security program. ProtectInfo can be found online at http://www.protectinfo.com.

Houston-based Encomia has announced the formation of the eMortgage Institute, an online resource offering educational workshops on electronic mortgages for mortgage executives.The institute is offering the first workshop, Introduction to eMortgages, at no charge. The two-hour basic workshop is designed to familiarize mortgage professionals with e-mortgages from a nontechnical, business perspective, Encomia said. The eMortgage Institute can be found online at http://www.emortgageinstitute.com.

A source at E*Trade Group Inc., Menlo Park, Calif., has confirmed that E*Trade Mortgage reduced its staff earlier this month by 163 full-time employees, but said the move was expected and that most of those laid off were employed by a temporary firm and had been working for E*Trade for less than 12 months.The move was related to a drop in volume the company has seen since rates have begun to edge upward. The company has begun releasing its numbers on a monthly basis. E*Trade originated $2.9 billion in retail mortgage loans during the second quarter. In July, the company reported $1.2 billion in direct mortgage originations, up from $1 billion in June. The August numbers have not yet been released.

TradeWeb LLC, an online fixed-income network based in New York, has launched a callable agency debt product.The product allows users to execute trades of any size with agency dealers that use the technology. TradeWeb can be found online at http://www.tradeweb.com.

Spending on automated mortgage collateral management systems will grow from $33 million this year to $193 million in 2008, according to an estimate by TowerGroup, Needham, Mass.The spending increase will cut the average time for a mortgage lender to complete a home appraisal from 6-10 days now to 4-7 days by 2008, the company said. "This is a critical shift for the mortgage lending industry, as it faces declining loan volumes following the record mortgage refinancing period experienced over the past two years," TowerGroup said. ".... Recent introductions of automated valuation models and automated collateral management systems hold promise for mortgage lenders to streamline traditional appraisals and collateral document management, which is the lengthiest and least automated of the loan processing tasks." The company said the forecast is based on research titled "The Next Mortgage Underwriting Revolution: Mortgage Collateral Assessment," by Craig Focardi, a senior analyst in TowerGroup's Consumer Credit practice. The company can be found online at http://www.towergroup.com.

One month to the day after IAC/InterActiveCorp (formerly known as USA Interactive) announced the completion of its acquisition of LendingTree Inc., RE/Max International filed a lawsuit against LendingTree alleging trademark infringement, unfair competition, and exploitation of its goodwill.The nine-count complaint, filed in the U.S. District Court in Denver, further alleges that the Charlotte, N.C.-based LendingTree used its website to make misleading statements about its relationship with RE/Max brokers. RE/Max, the international real estate agent and broker network, said LendingTree's site was misleading in that it led consumers to believe that the company was working with the entire RE/Max network. Furthermore, the complaint alleges that LendingTree.com "creates the false impression that…RE/Max and other major real estate franchisors have somehow aligned themselves with each other to create an agent locator service operated by LendingTree." LendingTree.com does feature a real estate agent locator service on its homepage that purports to give consumers access to national companies such as Coldwell Banker, Century 21, GMAC, and RE/Max, as well as independent local Realtors. RE/Max alleges that LendingTree has "at times, referred consumers to non-RE/Max agents or brokers despite specific requests from consumers for a RE/Max agent." The companies can be found online at http://www.lendingtree.com and http://www.remax.com.

New York-based Framework Inc., which provides enterprise-wide credit fulfillment technology for Bank of America and Washington Mutual, is about to announce that it has become the latest to join the eMortgage Alliance, a consortium of companies founded by DocuTech Corp.Alliance members collaborate to deliver all-electronic mortgage transactions. Framework offers a Web services-based platform through its LendWare credit fulfillment system to streamline electronic processes. The eMortgage Alliance members specialize in and automate separate steps of the eMortgage process, including the creation of SMART (securable, manageable, archivable, retrievable, transferable) documents and electronic signing, packaging, messaging, closing, recording, and vaulting, as well as strategic planning and implementation. Other members includes Wave Systems, VirPack, SwiftView, Rekon Technologies, The Performance Group, Encomia, and Ingeo. Framework can be found online at http://www.lendware.com, and DocuTech, based in Idaho Falls, Idaho, can be found at http://www.docutechcorp.com.

Dynatek Inc., Livonia, Mich., the developers of the MORvision loan origination system, has added an electronic document delivery (EDD) interface category to its Integration Suite offering that will make it easy for providers of electronic mortgage documents to do business with MORvision users.Dynatek's proprietary Plug-In technology provides system level integration of external data files between mortgage industry vendors and MORvision, giving lenders the equivalent of an electronic partner network built into the LOS. The new Plug-In for EDD will allow one-click electronic document delivery for MORvision users. Now, any EDD vendor can develop a Plug-In for MORvision. Data-Vision has already developed a Plug-In for its RemoteDocs offering and VMP has one for its vmpdelivers product. Dynatek's Integration Suite, a collection of Plug-Ins for credit bureaus, flood, title, appraisals, mortgage insurance, automated underwriting, registration and transaction portals. Dynatek's website address is http://www.dynatek.com.

Provantedge Technologies, Lake Forest, Calif., will provide electronic access to Plano, Texas-based LandSafe's credit reports and other credit services to mortgage brokers and lenders who use its Provantedge nVision loan management system.According to LandSafe president D. Steve Boland, the integration of the company's online systems with nVision should further increase order volume. Provantedge said it would also provide access to LandSafe's products through its VOX Loan Professional Websites offering, a tool that extends nVision's capabilities for online loan origination. LandSafe's services include appraisals, credit reporting, flood determination, title insurance, and escrow services for residential mortgage transactions. The companies can be found on the Web at http://www.provantedge.com and http://www.landsafe.com.

Kroll Inc., a risk consulting company based in New York, and Factual Data Corp., a Loveland, Colo.-based provider of information to the mortgage and consumer lending industries, have announced the exchange ratio for the stock portion of Kroll's previously announced acquisition of Factual Data.The exchange ratio has been set at 0.1497 of a share of Kroll common stock for each share of Factual Data common stock. The companies said the ratio reflects a volume-weighted average price of $23.3842 per share of Kroll stock for the measurement period, which ended Aug. 18. In addition to the stock portion, Factual Data shareholders will receive $14 in cash for each share of their common stock. The companies can be found online at http://www.krollworldwide.com and http://www.factualdata.com.

Claiming the top spot as a provider of transaction-capable retail lending websites to the mortgage industry, Mortgagebot has announced that its Powersite platform now boasts over 300 users.That milestone was reached in July, the company said, when Mortgagebot signed 13 new clients. The company serves most of its users as an application service provider, charging a minimal set-up fee, with an additional fee per closed loan. Mortgagebot is a two-time winner of Mortgage Technology magazine’s annual awards, once for Website of the Year and once as co-winner (with Fiserv) of the Synergy Award.

FinancialCircuit, Campbell, Calif., has signed a deal with Linsco/Private Ledger, San Diego, that will see its 4,700 independent financial advisers using FinancialCircuit's technology and lending systems.LPL is the largest broker-dealer in the country, with some 4,700 representatives. In the past, the company referred out mortgage business, but now advisers can use MoneyFind to provide debt consolidation products and services to its clients. The loans are then originated online and funded through a FinancialCircuit mortgage broker subsidiary. In addition to MoneyFind, LPL representatives will also have access to FinancialCircuit's transaction processing center. The processing center assists advisers with the execution of the client-selected mortgage and liability restructuring plans generated by FinancialCircuit's technology systems. The companies can be found on the Web at http://www.financialcircuit.com and http://www.joinlpl.com.

Homestore Inc., a provider of real estate media and technology systems, has announced a $63.6 million settlement agreement with the California State Teachers' Retirement System, the lead plaintiff in a class action lawsuit against the company.Under the agreement, which is subject to the approval of the U.S. District Court for the Central District of California, Homestore will pay $13 million in cash, issue 20 million new shares of common stock to members of the class, and adopt certain changes in corporate governance. The $13 million and the stock, currently valued at $50.6 million, will result in a one-time litigation settlement charge of approximately $63.6 million in the second quarter, the company said. Jack Ehnes, chief executive officer of CalSTRS, commended "the straightforward way in which the new management team at Homestore and its board of directors" worked to resolve the case. The governance provisions include, among other things, requirements for independent directors and special committees, the appointment of a new shareholder-nominated director, and a ban on the use of stock options for director compensation. The company can be found online at http://ir.homestore.com.

Nationwide Advantage Mortgage Co., Columbus, Ohio, and Yahoo! en espanol, a Spanish-language Internet service based in Coral Gables, Fla., have launched a mini-website offering mortgage services to Hispanics.Called "The Best Mortgage" center, the site will offer Hispanic consumers information for both experienced and first-time homebuyers, the companies said. Users will be able to check NAMC's mortgage rates and submit a free loan application online or over the telephone, with decisions in as little as 10 minutes, they said. "Our research indicates that, historically, the Latino community has had too many barriers to homebuying and financing needs," said Robert Kallio, NAMC's associate vice president of marketing. "Our partnership with Yahoo! en espanol provides the informational resources and financial tools to lower the cost of buying and owning a home for the growing Latino market." The mini-site can be found online at http://www.lamejorhipoteca.com, and the companies can be found at http://www.nationwide.com and http://www.yahooenespanol.com.

Tony Merlo has been named executive vice president/chief operating officer of eAppraiseIT LLC, a provider of real estate valuation services based in Poway, Calif.Mr. Merlo, who has 25 years of experience in the banking, mortgage banking, and title insurance industries, was most recently senior vice president of production for eAppraiseIT, a joint venture of The First American Corp. and Land America Financial Group. He was previously assistant vice president in the strategic sales division of First American’s Real Estate Information Services Group, and has also been assistant VP and regional manager for the Atlantic region of First American Title. The company can be found online at http://www.eappraiseit.com.

Encomia, Houston, and Ingeo, Logan, Utah, have both joined the eMortgage Alliance, a consortium of companies and experts dedicated to delivering all-electronic mortgage systems.Encomia will provide technology to implement digital signatures, electronic closing, and so-called electronic vaulting -- which provides for the storage and retrieval of electronic notes and other supporting documents -- while Ingeo delivers the last link in the chain: electronic recording. The eMortgage Alliance was founded by DocuTech Corp., Idaho Falls, Idaho. The alliance unites the capabilities of DocuTech, Wave Systems, VirPack, SwiftView, Rekon Technologies, and The Performance Group to enable customers to produce e-mortgages. Members each specialize in and automate separate steps of the e-mortgage process, including the creation of SMART (securable, manageable, archivable, retrievable, transferable) documents and electronic signing, packaging, messaging, closing, recording, and vaulting.

Dorado Corp., San Mateo, Calif., has announced that its user base has exceeded the 40,000 mark, which it attributed to its flagship ChannelMaster and PriceMaster Internet applications for home lending.The company said both products have been widely adopted by loan officers, brokers, and correspondents in Dorado's customer base, which includes Chase Manhattan Mortgage Corp., Citibank, Countrywide Home Loans, and Washington Mutual Mortgage. A provider of Demand Chain Management software for home lending banks, Dorado said its mortgage, home equity, and real estate products integrate business customers and consumers into lending processes. The company can be found online at http://www.dorado.com.

BridgeSpan Inc., a provider of real estate settlement and mortgage processing technology, has announced the relocation of its corporate headquarters from Mountain View, Calif., to Frisco, Texas, a suburb of Dallas.As a result, BridgeSpan said it would expand its Frisco facility, the second time this year it has announced a major expansion there. The company said the move would enable its technology, marketing, and finance departments to operate from a single center and would improve service as a result of sharing the same facility as the company's "client-facing" operations in Texas.

The mortgage boom is not abating, says Oklahoma City-based a la mode, citing more than 13.6 million real estate appraisal reports submitted to lenders via the company's Mercury Network over the past 12 months.Appraisal-related file requests and transactions -- such as location and flood map downloads, and appraisal report exchanges between appraisers and loan officer clients -- represent mortgage loans in process and are "the most reliable leading indicator of mortgage volume," the company said. "It continues to be a historically busy time for mortgage and appraisal professionals, and we can say with confidence, based on our server volume, that it shows no sign of slowing down in the immediate future," said Mike Unser, a la mode's product line manager. The Mercury Network is "the largest transaction platform in the mortgage industry," serving more than half of U.S. appraisers and nearly all the nation's loan officers and mortgage brokers, according to a la mode. The company can be found online at http://www.alamode.com.

Fairfield Financial Services, Macon, Ga., a subsidiary of Security Bank of Bibb County, has selected eLynx uSign technology for electronically signing mortgage disclosure and loan documents through the Internet.The Cincinnati-based eLynx Ltd. is a provider of electronic document delivery systems for mortgage lenders. "We selected eLynx uSign to reduce delivery costs and the amount of time spent sending documents back and forth to homebuyers," said Tino Sheridan, president of Fairfield Financial Services. The technology that powers eLynx uSign was developed by Silanis Technology. The mortgage banking firm said it plans to have eLynx uSign fully implemented by September. The companies can be found on the Web at http://www.fairfield-financial.com and http://www.elynx.com.