Mortgage technology

Fidelity National Information Solutions Inc., Santa Barbara, Calif., has reported record net earnings of $15.3 million in the second quarter, up 68% from $6.2 million a year earlier.The company said it booked $142.3 million in revenue during the quarter, also a company record, up from $92.1 million in the second quarter of 2002. FNIS is in the process of merging with majority stockholder Fidelity National Financial. FNIS can be found on the Internet at http://www.fnis.com.

Thomas M. Bradham Jr. has been hired as vice president and chief information officer of LOGS Financial Services Inc., a Northbrook, Ill.-based provider of outsourced default management services for lenders.Mr. Bradham was most recently vice president of client services at Prizm Technologies, an information technology-outsourcing firm specializing in the financial sector. He was previously assistant vice president of data center operations at IndyMac bank, and worked for Resource Bancshares Mortgage Group, now NetBank, in various roles, LOGS said. The company can be found online at http://www.logs.com.

Synergistic Software Systems Inc., Spokane, Wash., has released version 2.0 of its SharperLending Electronic Partner Network, which it says adds increased performance and a host of enhanced features.SharperLending is a Web-based platform that lenders use to order, store, and manage the reports they need to close a loan. Synergistic said the platform is free for lenders and brokers to use. The only cost is for reports that lenders order. The new version has been streamlined to give lenders faster and easier access to third-party settlement services, the company said. In addition, Synergistic said it has added more capabilities to the system to allow it to scale up to handle additional volume. The new version also sports a new screen look and features that make it easier to customize a lender's service provider choices to its own workflow. Synergistic can be found online at http://www.sharperlending.com.

PCi Corp., Boston, has released Wiz Geocoder 3.5, a Web-based tool to integrate "geocoding" and edit-check capabilities into front-line applications that now includes Regulation C compliance.Geocoding allows financial institutions to retrieve demographic data for each applicant, enabling them to offer the most appropriate loan to each individual. With the introduction of Regulation C, financial institutions are expected to collect and analyze a dozen or more new variables when considering loan applications, the company pointed out. The new tool is designed to protect the integrity of data collected at the point of sale. The Wiz Geocoder, with enhanced edit-check functionality, also supports flood determinations, anti-predatory-lending analysis, and other compliance-related tasks. PCi can be found on the Web at http://www.pciwiz.com.

CitiMortgage, St. Louis, unveiled a new electronic delivery program to its correspondent lenders at the recent Western Secondary Market and Mortgage Bankers Conference in San Francisco.The new delivery platform is designed to provide flexibility to the company’s lending sources. When and how loans are registered and delivered is left to the individual correspondent. Single or multiple loans can be delivered in one session with all final data included in the transaction, or the correspondent can choose to update the loan information over time through multiple sessions and then submit it for final delivery, CitiMortgage said. The new program is the second of three phases of Citi’s technology initiative. Ultimately, the company says it will create a complete, end-to-end online registration, delivery, transaction, and pipeline management platform for the wholesale mortgage market. CitiMortgage's Internet address is http://www.citimortgage.com.

Fidelity National Financial Inc., Irvine, Calif., which owns approximately 66% of Fidelity National Information Solutions, Santa Barbara, Calif., has announced the terms of a merger agreement under which it will acquire all the remaining outstanding shares of FNIS.Each share of FNIS common stock will be exchanged for 0.830 shares of FNF common stock, FNF said. Based on FNF's closing price of $31.54 on July 10, the ratio would represent a consideration of $26.18 per share of FNIS. The agreement imposes a $29 cap on the implied per-share consideration, and if the consideration falls below $19 per share, FNF may adjust the exchange ratio to maintain the implied consideration at $19 per share, FNF said. The transaction was first proposed in May, with an exchange ratio of 0.805 and an implied offer price of $24.70 per share of FNIS common stock. The companies can be found online at http://www.fidelitynational.com and http://www.fnis.com.

Eighty-five percent of consumers with Internet access researched the purchase of a home online in the past two years, and single women in particular rate online mortgage information as valuable, according to a Yahoo! Real Estate survey.Among single women, 92% of those responding to the survey (conducted by Harris Interactive) researched homebuying online, said Yahoo! Real Estate. Moreover, 62% of single women rated online mortgage calculators as valuable and 68% rated online "how-to" articles on picking lenders as valuable, compared with 54% and 53%, respectively, of single men. The Sunnyvale, Calif.-based Yahoo! cited data from the National Association of Realtors indicating that twice as many single women as single men bought homes in 2001. Yahoo! Real Estate can be found online at http://realestate.yahoo.com.

Associated Software Consultants Inc., Middleburg Heights, Ohio, has announced that Woronoco Savings Bank has implemented ASC's Java-based PowerLender loan origination system.A spokesman for Westfield, Mass.-based Woronoco said the fact that PowerLender is written in Java makes it easier to integrate, maintain, and upgrade the LOS so that it complements other computer systems, such as the bank's link to its service bureau, Connecticut Online. The system is compatible with commonly used database programs such as Oracle, MS SQL, or MySQL. The companies can be found online at http://www.asconline.com and http://www.woronoco.com.

In a widely expected move to expand its market reach beyond top-tier lenders, Tarrytown, N.Y.-based Framework Inc. has announced a full range of purchase and deployment options for its LendWare credit fulfillment platform and components.The options to be offered include releasing source code to lender customers (such as Washington Mutual) desiring to create an in-house system; subscription-based licensing; a pre-configured LendWare system to reduce implementation time and lower cost; an ASP (application service provider) utility for customers seeing to minimize information technology infrastructure; and a business-process outsource utility offering economies of scale through a Framework BPO partner or fulfillment provider. Framework, recently acquired by Bank of America after providing the technology powering BoA’s LoanSolutions enterprise-wide system, has strategic relationships with Fidelity and other fulfillment providers.

E-Loan, Dublin, Calif., has become the first lender to earn the title "Upfront Mortgage Lender" from a faculty member at the Wharton School who calls himself "The Mortgage Professor."Jack Guttentag, professor of finance emeritus at the Wharton School of the University of Pennsylvania, Philadelphia, has launched a program to certify Internet lenders, and E-Loan was the first to fulfill the five requirements of the program. Mr. Guttentag, who advises consumers about the mortgage process, says the requirements lenders must meet to be considered "upfront" include specifying which market niches they serve, providing a guaranteed mortgage package, and providing clear information on lock requirements, ARMS, and loan officer compensation. E-Loan can be found online at http://www.eloan.com, and Mr. Guttentag can be found at http://www.mtgprofessor.com.

U.S. Recordings, Saint Paul, Minn., in conjunction with the Dakota County Property Records Office and US Bank, has completed Minnesota's first electronic filing of a mortgage satisfaction document using the recently adopted Electronic Real Estate Recording standards.Dakota County, part of the Twin Cities metropolitan area, is one of five ERER pilot counties to process an electronic mortgage satisfaction or release document. U.S. Recordings software, InteleDoc Plus, filed the "satisfactions" from US Bank.

Ameriquest Mortgage Co., Orange, Calif., has announced a pilot program under which it will replace traditional appraisals on certain mortgage programs with Collateral Valuation Insurance, a new product developed by Fidelity National Information Solutions.Ameriquest said it has signed a letter of intent with FNIS under which Ameriquest will use CVI to speed up its collateral valuation process for its first-mortgage operations. Ameriquest, which has been using CVI for the past 90 days to replace certain appraisals, said it decided to expand the use of the product after experiencing "substantial improvement in turnaround times and quality of its collateral valuations." CVI can reduce the turnaround time for appraisals from several weeks to several days, the company said. Ameriquest said CVI is the first appraisal alternative product that combines automated estimates of value with an inspection of the property and valuation insurance.

RealEC Technologies, Santa Ana, Calif., has reported the implementation of its eCommerce Exchange by ABN Amro Mortgage Group Inc., and it says the lender will use RealEC's iSelect to manage the settlement services process for its One-Fee Services offering.The Ann Arbor, Mich.-based ABN Amro says RealEC will allow the lender to significantly reduce its expenses while improving capacity management. The iSelect tool will be used to provide electronic appraisal, automated valuation models, flood, title, and closing requests. One-Fee Services bundles and delivers product requests to an extensive network of providers based on AAMG's business rules. AAMG said it will integrate OFS into all its divisions, including InterFirst Wholesale Mortgage Lending, LaSalle Home Mortgage, and Standard Federal Bank. RealEC can be found on the Web at http://www.realec.com, and ABN Amro can be found at http://www.mortgage.com.

Kroll Inc., a risk consulting company based in New York, has agreed to acquire Factual Data Corp., a Loveland, Colo.-based provider of information to the mortgage and consumer lending industries, for approximately $115 million, the companies have announced.Under the agreement, the purchase price is expected to be $17.50 for each outstanding share of Factual Data common stock, 80% of which would be payable in cash. The remainder would be payable in Kroll common stock based on a floating exchange ratio subject to a 10% collar above and below $26.51, which is the volume-weighted average trading price of the Kroll stock for the five trading days ended June 20. Michael G. Cherkasky, Kroll's president and chief executive officer, said Factual Data's decision intelligence systems are "a clear fit with our mission of mitigating clients' risks, and its proprietary technology provides a ready-made platform for expanding our background screening capabilities into the financial services, real estate, consumer lending, and other sectors where we intend to launch new services." The companies can be found online at http://www.krollworldwide.com and http://www.factualdata.com.

Accelerating its embrace of Internet-based technology, Fiserv Lending Solutions has announced a strategic partnership with Dorado Corp. to integrate Dorado's ChannelMaster products and .MOR Web Services platform with Fiserv’s UniFi PRO Mortgage and easyLender LOS systems.The initial integration with UniFi is scheduled to be completed in the third quarter. San Mateo, Calif.-based Dorado's ChannelMaster products offer to facilitate communication and improve productivity by tightly integrating borrowers, brokers, loan officers, marketing staff, and production personnel via secure, personalized websites. The .MOR Web services platform enables lenders to integrate new products and services with legacy systems. Fiserv Lending Solutions, Lake Mary, Fla., is a subsidiary of Brookfield, Wis.-based Fiserv, which reported 2002 revenues of $2.3 billion. Fiserv can be found online at http://www.fiserv.com.

Computer services giant Electronic Data Systems Corp., the corporate parent of mortgage servicing and outsourcing businesses in the United States and Europe, has announced that it will take a charge in excess of $400 million and cut some 2,700 employees worldwide.In a June 18 conference with analysts, EDS chairman and chief executive Mike Jordan outlined plans "to refocus the company and renew the value it places on its people." An EDS spokesman said it was unclear what if any implications the restructuring would have for the company's mortgage-related business lines, which include the Greensboro, N.C.-based servicer Wendover Financial Services Corp. and EDS Credit Services, which offers third-party loan administration services in the United Kingdom. Specifics of which portions of the company will be affected by the layoffs will "unfold … over time," the spokesman said. The company has indicated that it plans to focus on its core information technology outsourcing business in the restructuring, making it appear unlikely that it will cut very heavily, if at all, in that area.

Flagstar Bank has picked eAppraiseIT LLC's EagleCert Insured Valuation product to handle portfolio loans generated through its nationwide network of correspondent lenders and independent mortgage brokers, eAppraiseIT has announced.Michigan-based Flagstar said the program -- for which eAppraiseIT cooperated in creating a proprietary workflow system -- will lower costs and produce efficiencies for the bank. The workflow component uses embedded lender rules to automate the process of product selection by first using EagleCert automated valuation models and augmenting them with other products as needed. Licensed appraisers are used for desktop appraisals and 2055 drive-bys. Turnaround time for all EagleCert transactions is less than 24 hours, according to eAppraiseIT, which is a joint venture between The First American Corp. and LandAmerica Financial Group. The Flagstar implementation is expected to be completed by the end of June. The companies can be found online at http://www.flagstar.com and http://www.eappraiseit.com.

Priceline.com Inc., Norwalk, Conn., has announced a 1-for-6 reverse stock split that will reduce its shares of common stock outstanding from approximately 227 million to about 37.5 million.The online company offers a travel service and a personal finance service featuring home mortgages, refinancing, and home equity loans through an independent licensee. It can be found on the Web at http://www.priceline.com.

In order to more fully leverage its end-to-end technology platform, GHR Systems, Wayne, Pa., has launched a mutlilender wholesale origination website for brokers called BrokerOneSource.The new site will compete with a number of other industry sites dedicated to helping brokers and lenders connect, such as Ellie Mae's ePass Business Center, eMagic, and LION, as well as traditional desktop loan origination systems such as Calyx, Contour, Genesis, BYTE, and others. GHR says its offering will be different because it will allow the broker to access real-time pricing and product eligibility before it submits the loan to the lender. "For the first time, brokers have a centralized transaction platform on the Internet that offers the full capabilities of a desktop LOS as well as seamless connectivity to lenders and services," said Steve Jordan, product manager for BrokerOneSource. The product will also offer lender tools and pipeline management tools for brokers. Currently, two wholesale lenders are on the site. GHR plans to start adding brokers sometime in mid-July. More information can be found on the Web at http://www.brokeronesource.com.

LION Inc., Seattle, has announced the introduction of a new version of its LION Pro Internet software that boasts enhancements to its pricing and productivity features.LION has added programs and pricing for 29 wholesale and correspondent lenders to its lender pricing database, which now includes 12 of the top 15 correspondent lenders in the United States (based on 2002 origination volumes), the company said. The new version incorporates additional search parameters, such as FICO scores and prepayment penalties, and the company has merged its productivity and management tools into a common interface to enable customers to more easily manage leads, rates, users, and websites, LION said. "By adding tools for midsize and large mortgage companies, along with the ability to quote correspondent and risk-based pricing, we've expanded this product's potential market to over 100,000 originators," said David Stedman, LION's president and chief executive officer. The company can be found online at http://www.lioninc.com.