Mortgage technology

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.

Under a new deal between DataSynapse Inc., New York, a provider of self-managed grid computing software, and HanoverTrade Inc., Edison, N.J., the latter company's Hanover/Busch Analytics will be grid-enabled through DataSynapse’s GridServer application operating environment.Similar to server farms, where a distributed network of computers works together to handle complicated processes, the GridServer will permit calculations within Hanover/Busch Analytics to be distributed to hundreds of CPUs it manages, reducing the time it takes to value loans. HanoverTrade, a wholly owned subsidiary of Hanover Capital Mortgage Holdings Inc., said it already has one customer on the jointly offered platform. It declined to name the company, saying only that it is "one of the largest financial institutions in the world." The companies can be found on the Web at http://www.datasynapse.com and http://www.hanovertrade.com.

A new program introduced by E*Trade Group Inc.'s E*Trade Mortgage, Menlo Park, Calif., will enable consumers to lock in an interest rate now and transfer it to the next home they purchase, instead of paying off the old loan and applying for a new loan at potentially higher rates.The company says its Mortgage on the Move program will only be available for a limited time, but will be offered nationwide. E*Trade said it expects this program to drive overall purchase-money product volume for E*Trade Mortgage. While popular in Canada, the concept of a portable mortgage has yet to catch on in the United States, though homebuilders hope that it will. After refinancing into a lower-interest-rate loan, borrowers are often hesitant to trade up to a larger home if it means paying a significantly higher interest rate on their next loan. This often translates into slower new home sales. E*Trade can be found on the Web at http://www.etrade.com.

Rock Holdings, the parent company of Quicken Loans and Rock Financial, has filed applications with federal banking regulators to operate "Rock Bank" as an FDIC-insured, community and Internet-based bank.The bank, to be headquartered in Michigan, will capitalize on Quicken's success in online lending, said Dan Gilbert, chairman of Rock Holdings. "We are thrilled that we will soon be able to offer an array of traditional banking products to our loyal customer base, backed by great customer service and the convenience of online banking," he said. Quicken Loans will become a subsidiary of Rock Bank.

Despite its cyclical nature, the mortgage lending business is really a growth industry, the chief executive officer of Fidelity National Information Solutions told an FNIS conference May 28."It may be cyclical, but it’s more growth than cycle," Patrick F. Stone said at the Valuation Innovation & Leadership Summit in Laguna Beach, Calif. The audience of about 150 was made up of mortgage lenders, settlement services providers, technology vendors, consultants, and the news media. The company hosted the summit to discuss issues surrounding collateral valuation, but Mr. Stone assured attendees that it would not be a "commercial" for his firm, which offers a number of products and services, including automated valuation models. FNIS, based in Santa Barbara, Calif., is a subsidiary of Fidelity National Financial, which can be found online at http://www.fnf.com.

Fidelity National Financial Inc., Irvine, Calif., which owns approximately 66% of Fidelity National Information Solutions, Santa Barbara, Calif., has announced a proposal to acquire all the remaining outstanding shares of FNIS.The proposal represents a fixed exchange ratio of 0.805 shares of FNF common stock for each share of FNIS, the companies said. Based on FNF's closing price of $38.36 on May 23, the proposed offer price would total $24.70 per share of FNIS, a 25.4% premium to the latter's closing price of $19.70 on that date. "With FNF's recent acquisition and the formation of Fidelity Information Services, we believe it makes strategic sense to fully integrate FNIS back into FNF," said FNF president Raymond R. Quirk. "FNIS can better capitalize on the significant technology resources of FIS, and we can provide more cohesive technology solutions to our customers by combining all our resources at FNF." The companies can be found online at http://www.fidelitynational.com and http://www.fnis.com.

James W. Horne, a former chief information technology officer with the Mortgage Bankers Association of America, has been named manager of the technology consulting division of Mortgage Dynamics Inc., McLean, Va.Mr. Horne was most recently vice president for electronic financial services at Wave Systems Corp. He was previously vice president and chief IT officer at the MBA and president and chief operating officer of the MBA's electronic commerce and business technology subsidiary, Lender Technologies. "Technology is quickly becoming the most prominent differentiator in the mortgage industry, allowing technology-savvy companies to gain significant ground on their competitors," said Mary Bruce Batte, a managing director at Mortgage Dynamics. "Our clients want to identify and implement the most beneficial technologies, and that has been Jim's focus for the past few years." The company can be found online at http://www.mortgagedynamics.com.

Technology consulting firm CC Pace, Fairfax, Va., has entered a reseller agreement with Dorado Corp., a demand chain management firm based in San Mateo, Calif., to deliver CC Pace's LGXpress as a Dorado .MOR Web Service.LGXpress is a browser-based interface to the Department of Veterans Affairs’ paperless loan guaranty process. LGXpress speeds up the loan guaranty process and reduces the lender's cost of processing a VA loan. The .MOR version of LGXpress is expected to be available in the third quarter as the first step in a comprehensive Web-services-based government loan package that lenders can use as an integrated part of their origination system. The companies can be found online at http://www.ccpace.com and http://www.dorado.com.

California's San Bernardino County has awarded Bid4Assets Inc., Silver Spring, Md., a three-year contract to auction tax-defaulted properties on its website.Bid4Assets said the county's first auction under the contract has begun, featuring approximately 5,500 tax-defaulted properties (including parcels and timeshares) with staggered close times ranging from May 12 to May 23. The parcels include residential, commercial, and agricultural lots, and the timeshares are located at four resorts. The company said San Bernardino County formerly held annual tax sale auctions that resulted in the sale of only 400 properties per year out of 2,500 offered, a 16% success rate. In a pilot program last August, the county contracted with Bid4Assets to auction tax-defaulted properties online, and the auction resulted in a 95% success rate, Bid4Assets said. The company can be found online at http://www.bid4assets.com.

Mavent Inc., Irvine, Calif., has announced that its 2comply Expert System can help lenders assure secondary market investors that assignee liability risks are limited and quantifiable.The company noted that Fitch Ratings recently announced revisions to its rating criteria to account for risks posed by anti-predatory-lending laws that subject investors in residential mortgage-backed securities to liability. "Predatory lending liability is increasing in both scale and scope, and has become a serious threat to the success of high-volume, multijurisdictional lenders," said Tim Green, Mavent's chief executive officer. "2comply not only reduces the risk of liability to lenders. 2comply can also reduce the risk of assignee liability, thus increasing the loan's value to purchasers." Mavent noted that Fitch's new criteria require additional credit enhancement for RMBS deals containing loans subject to assignee liability. That change "has the potential to significantly affect the economics of structured finance transactions," Mavent said. The company can be found online at http://www.mavent.com.

MERS, an electronic loan registry based in Vienna, Va., has reported the registration of its 15 millionth loan.The loan was registered April 30 by First Magnus Financial Corp., Tucson, Ariz., MERS said. R.K. Arnold, president and chief executive officer of MERS, said the loan registry "is capturing well over 40% of all the mortgage loans originated in the United States." MERS, or Mortgage Electronic Registration Systems, can be found on the Internet at http://www.mersinc.org.