Mortgage technology

Framework Inc., a Tarrytown, N.Y.-based technology firm and developer of the LendWare credit fulfillment platform, has been acquired by Bank of America, its biggest client.Framework has been working for much of the past two years on an implementation of LendWare for BofA that went live in the fourth quarter of 2002. BofA sources have expressed the bank’s satisfaction with the implementation, which is beginning in its retail channel. The platform is product-agnostic and can be used for the origination and fulfillment of any kind of credit-based product. Framework will operate as an independent subsidiary and says that it does not expect its product to become a proprietary tool of BofA, but that it does expect to secure additional working capital through the acquisition that will allow it to market to other large lenders more effectively. Framework will maintain its current mission and management team. Framework can be found online at http://www.lendware.com, and BofA can be found at http://www.bankofamerica.com.

The Mortgage Industry Standards Maintenance Organization has been authorized to incorporate the contents of the Commercial Mortgage Securities Association's Investor Reporting Package into its data dictionary.The CMSA will retain the ownership and the responsibility for revising and updating the IRP. Terming the CMSA "the independent standard for investor reporting in the commercial mortgage-backed securities market," Michael F. Petrie, vice chairman of the Mortgage Bankers Association of America and the chair of its Technology Steering Committee, said the CMSA's participation is "crucial" as MISMO develops a data standards platform for the commercial mortgage industry. MISMO, the MBA's data standards organization, will establish a data transfer specification that will provide information consistent with the IRP. MISMO's Commercial Steering Committee will be expanded by two seats, the new members to be appointed by the CMSA with the approval of MISMO's commercial leadership group. The CMSA can be found online at http://www.cmbs.org, and the MBA can be found at http://www.mbaa.org.

Financial Industry Computer Systems Inc., Dallas, has announced that Desert Schools Federal Credit Union, Phoenix, has chosen the FICS commercial mortgage loan servicing system.FICS said the credit union picked Commercial Servicer (along with an add-on product, Commercial Accountant) because it offered the best match with its FICS-driven mortgage servicing system, Mortgage Servicer. FICS, a mortgage technology specialist, can be found on the Internet at http://www.loanware.com.

First American Real Estate Solutions, Anaheim, Calif., has announced the successful implementation of a high-speed, secured direct connection to Freddie Mac's valuation platform, including Home Value Explorer and Home Value Calibrator.FirstAm RES's technology offers a single point of access to its products and Freddie Mac's. The company's line of information solutions includes its automated valuation model (ValuePoint 4), property reports, document images, flood data maps, legal and vesting reports, parcel maps, foreclosure information, demographics, crime and school statistics, and lien release information. The company made its announcement at Thomson's 6th Annual Mortgage Technology Conference in Miami. FirstAm RES can be found online at http://www.firstamres.com.

Fuego Inc., Dallas, has released Fuego for Banking, a business process management system banks can use to adapt to changing operating conditions to improve performance and customer-facing processes.The software allows banks to create, manage, and change processes easily, Fuego said. A number of process templates come bundled with the software, including loan origination, Patriot Act compliance, credit issuance, credit processing, and Sarbanes-Oxley Act compliance. The company announced the product at Thomson’s 6th Annual Mortgage Technology Conference in Miami. Fuego’s website address is http://www.fuego.com.

DocuTech Corp., Idaho Falls, Idaho, and Wave Systems Corp., Lee, Mass., have announced the formation of the eMortgage Alliance, a group of companies offering a paperless mortgage system that meets guidelines established by the Mortgage Industry Standards Maintenance Organization.Each alliance member specializes in separate steps of the mortgage process, including electronic signing, packaging, messaging, and recording, and the creation of SMART Docs. “The key to this alliance is that a lender can pick and choose any part of the process that they want to automate today,” said Ty Jenkins, chief executive officer of DocuTech. Other alliance members include SwiftView, which handles electronic delivery of mortgage documents; VirPack, offering electronic packaging, bar code, imaging, electronic delivery, and management systems; and Rekon Technologies, providing a platform for electronic county recordings of releases and satisfactions. DocuTech and Wave Systems can be found online at http://www.docutechcorp.com and http://www.wavesys.com.

Fidelity National Financial, Irvine, Calif., which has been on an acquisition tear, has struck again -- this time, agreeing to buy the financial services technology division of Alltel, Little Rock.FNF, a third-party vendor that provides title insurance and other real-estate-related services to residential lenders, will pay $1.05 billion in cash and stock for the Jacksonville, Fla.-based unit. Alltel operates the largest residential loan "service bureau," but that business faces challenges as some large servicers, notably Washington Mutual, move to install in-house systems. FNF's interest in Alltel was first reported in early January by National Mortgage News. Alltel says its servicing bureau processes 46% of all outstanding residential loans in the United States. The company noted that it has "processing relationships" with 17 of the top 25 mortgage funders. (See the Feb. 3 issue of NMN for full details.)

ARC Systems, a mortgage technology application service provider based in Austin, Texas, rendered decisions for a record $80 billion in loan applications in 2002, a 328% increase, the company has announced.ARC Systems said LendTech, its flagship product, rendered decisions for over half a million loan applications last year, with a peak day in September totaling $2.7 billion. Ed Jones, chief executive officer and president of ARC Systems, attributed the growth to an expansion of LendTech beyond the subprime market to the securities and warehouse markets, and to the product's capabilities. LendTech enables clients "to increase loan application volumes by as much as 300% utilizing their current staff," he said. The company can be found online at http://www.arcsystems.com.

PW Funding Inc., a subsidiary of Charter Municipal Mortgage Acceptance Co. based in Mineola, N.Y., has launched a new website that reflects the integration of PWF into CharterMac and Related Capital Co.The site now boasts an updated look, a new navigational layout, and a feature that enables users seeking a multifamily loan to request a quote directly through the website, the company said. The new website follows the launch of new sites for both CharterMac and Related Capital. PW Funding, a full-service direct mortgage lender for multifamily property owners and developers, can be found on the Web at http://www.pwfunding.com.

HanoverTrade Inc., Edison, N.J., has redesigned its Busch Analytics Valuation System and launched Hanover/Busch Analytics 6.0 servicing valuation software.Wells Fargo Mortgage Corp. will be the first to use the improved application, the company said. Under a multiyear licensing agreement, Wells Fargo will use the system to model its servicing portfolio. Enhanced features of the new version include the integration of two key components, Asset OnSite and Asset Manager; expanded loan-level prepayment factors; loan-level servicing valuation; increased data mapping capabilities; and an enhanced ability to stratify portfolios using enlarged data field and increment criteria. HanoverTrade, a subsidiary of Hanover Capital Mortgage Holdings Inc., acquired Busch Analytics in January 2002. Hanover Capital is a mortgage real estate investment trust. HanoverTrade can be found online at http://www.hanovertrade.com.

Netupdate Inc., Bellevue, Wash., has announced the addition of five features to Originator Pro, its flagship point-of-sale system for mortgage professionals.The enhancements include Good Faith Estimate and Truth-in-Lending disclosure documents; Express Pre-Approval Application, powered by Fannie Mae; enhanced loan file export functionality; loan program database and closing cost templates; and simplified pipeline management. "This new version places the must-have sales tools into a single interface enabling loan officers to reduce the time to approval," said Diane Holmstrom, Netupdate's chief executive officer. Express Pre-Approval Application, an optional module, enables the loan officer or borrower to enter limited financial information, obtain a pre-approval decision from the lender online, and if pre-approved, print out the pre-approval letter in minutes, the company said. The company can be found online at http://www.netupdate.com.

Freddie Mac has reported that its Loan Prospector automated underwriting service evaluated its 25 millionth loan in 2002, one of some 8.2 million loans run through the system in that period.The service debuted in 1995 and has set eight consecutive volume records since that time. In 1995, the system evaluated more than 38,000 loans. In 2001 it reached the 10 million mark, and 18 months later, in June of last year, it reached the 20 million mark, the government-sponsored enterprise said. The 25 millionth loan was evaluated on Dec. 18. Freddie’s website address is http://www.freddiemac.com.

features to Originator Pro, its flagship point-of-sale system for mortgage professionals.The enhancements include Good Faith Estimate and Truth-in-Lending disclosure documents; Express Pre-Approval Application, powered by Fannie Mae; enhanced loan file export functionality; loan program database and closing cost templates; and simplified pipeline management. "This new version places the must-have sales tools into a single interface enabling loan officers to reduce the time to approval," said Diane Holmstrom, Netupdate's chief executive officer. Express Pre-Approval Application, an optional module, enables the loan officer or borrower to enter limited financial information, obtain a pre-approval decision from the lender online, and if pre-approved, print out the pre-approval letter in minutes, the company said. The company can be found online at http://www.netupdate.com.

Marshall & Swift Inc., Los Angeles, a provider of residential and commercial real estate cost data and appraisal technologies, has purchased LoopNet’s Internet-based subscription service, AppraiserLoop.The terms of the transaction were not disclosed. The deal will give LoopNet, a San Francisco-based commercial real estate information services provider, more time to focus on its online commercial listing service, while it gives Marshall & Swift a tool that combines a variety of data sources and management tools in one comprehensive package. The tool will be re-launched as M&Sconnect, which Marshall & Swift hopes will tap the largely undeveloped networking possibilities in the appraisal industry. LoopNet will remain a data exchange partner with Marshall & Swift. Also included in the sale is the long-term contract with the Appraisal Institute, a professional organization of real estate appraisers, to develop and operate the Web-based data cooperative Appraisal Institute Commercial Database. The companies can be found online at http://www.marshallswift.com and http://www.loopnet.com.

The Mortgage Industry Standards Maintenance Organization eMortgage Workgroup has released eMortgage Guidelines and Recommendations, version 1.0.The release comprises specifications and supporting documents that provide a framework for implementing paperless mortgages with electronic signatures. The framework is built around a Securable, Manageable, Archivable, Retrievable, Transferable (SMART) Document, which binds data, presentation, and signatures into a single electronic file. Specifications and guidelines are also provided for what MISMO calls ePackaging, eMessaging, and eVaulting. The first allows multiple electronic documents, or even hierarchical electronic packages, to be bundled together, while eMessaging leverages MISMO’s XML Request/Response architecture and eVaulting provides for the storage and retrieval of electronic notes and other supporting documents. The eMortgage guidelines and specifications may be freely downloaded from the MISMO website at http://www.mismo.org.

Minneapolis-based Dexma, creator of the Transaction Director technology platform, reports that the volume of mortgage business traveling across its system tripled in 2002.In the fourth quarter, the company reported that nearly 500,000 unique loans traveled over its software, totaling approximately $80 billion in loan transactions. “Nearly one in every eight loans currently is transacted over a Dexma-built platform,” said Steve Mase, president of Dexma. During 2002, the company added or re-deployed nearly 40 Web servers. Dexma now hosts over 100 servers for more than 50 clients. As a Fannie Mae technology partner, Dexma developed the government-sponsored enterprise’s Web-based versions of Desktop Originator and Desktop Underwriter. Dexma can be found on the Web at http://www.dexma.com.

Michel Van Hee has been named chief executive officer of Sollen Technologies, a Dallas-based application services provider for the mortgage industry.Before joining Sollen, Mr. Van Hee spent two years as vice president of business development at Rose Research, an intellectual property company, and three years as vice president of U.S. Operations at Velleman Inc. Mr. Van Hee said Sollen now has 70 customers across the country, and predicted that the customer base will more than triple by the end of the year. Sollen can be found on the Web at http://www.sollen.com.

E-mail messages promoting mortgages and other loans are second only to pornography spam in the number of recipients who find them annoying, according to a recent Harris Poll.The survey found that 80% of respondents who use the Internet find spamming "very annoying," up from 49% two-and-a-half years ago, and that 74% favor banning such mass e-mailings. Topping the list of annoying kinds of spam were pornography, cited by 91%, and mortgages and other loans, cited by 79%, Harris Interactive reported. Investment spam ranked third, at 68%, and real estate fourth, at 61%. Harris can be found online at http://www.harrisinteractive.com and http://www.harrispollonline.com.

Info1 Holding Co. Inc., Atlanta, a national provider of credit information for the mortgage industry, has formed an alliance with Transamerica Flood Hazard Certification that will allow Info1 to resell Transamerica's flood determination services.Info1 is the only credit reporting firm licensed to resell TFHC products, the company said, including its new eFlood product, an Internet-based flood system with account management functions that allows users to access flood zone determination information over the Web. Info1 will also offer other Transamerica Flood services, including audits of the flood hazard status for portfolios of existing loans. The companies can be found on the Web at http://www.info1credit.com and http://www.transamericafinance.com/tfhc.

London Bridge Group has completed a data integration tool developed for its LenStar default management attorney referral system designed to provide a bi-directional interface between a customer’s servicing or case management system and the Internet version of LenStar.The LenStar Black Box is designed to eliminate the data collection screen scraping process by connecting to any database supported by the Microsoft ADO data access technology, or by processing XML messages. The data transfers occur in a real-time environment via the Internet. In addition, intelligent integration is built in, using the data to close cases, establish holds, send messages, and more, London Bridge said. The product is being beta-tested with the case management systems of a number of law firms. London Bridge said it is working with other technology vendors to ensure that other leading default management products integrate with LenStar via the Black Box. London Bridge's website address is http://www.london-bridge.com.