Mortgage technology

Freddie Mac has announced the successful purchase of an all-electronic mortgage. The mortgage was originated in Utah and made legally binding through the Electronic Signatures in Globaland National Commerce (E-SIGN) Act, which went into effect Oct. 1. Mountain America Credit Union, Salt Lake City,originated and closed the mortgage, and CUNA Mutual Mortgage Corp., Madison, Wis., is servicing it. The participantsused Digital Handshake technology from iLumin Corp. for the transaction. The Orem, Utah-based iLumin recently launchedDigital Handshake Server, which is designed for secure, private, legally binding, start-to-finish online transactions.Digital Handshake has been in a pilot-testing phase since June and currently includes partners Trans Union LLC;GMAC Mortgage; Bank of America; Stewart Title; and H&R Block Mortgage Corp. Organization and company websiteaddresses are http://www.freddiemac.com, http://www.mtnamerica.org, http://www.cunamutual.com, and http://www.ilumin.com.

Thirteen leading commercial property companies have signed an agreement to establish Office Technology Consortium "to improve business processes, drive tenant values, and strive to improve industry service standards." The founding members of the consortium are: Boston Properties, Brookfield Properties Corp., CarrAmerica Realty Corp., Crescent Real Estate Equities Co., Duke-Weeks Realty Corp., Highwoods Realty LP, Hines, Mack-Cali Realty Corp., Oxford Properties Group, Prentiss Properties Trust, Shorenstein Co., TrizecHahn Office Properties, and Vornado Realty Trust. These companies own or manage over 400 million square feet of office space in North America on a combined basis. Initially, the consortium will concentrate on two key initiatives: the first will be an online "Landlord Procurement Exchange" aimed at lowering landlord and tenant operating costs and increasing rental value; the second will be an online "Leasing Exchange" that will enable customers to make informed leasing decisions.

Mortgage lending giant Countrywide Home Loans, Calabasas, CA and electronic billing and payment provider CheckFree, Atlanta have reported that the former has made the latter's technology available to its 2.4 million customers across the United States. The technology allows Countrywide customers to pay their mortgage and home equity bills through a number of CheckFree-supported websites including Yahoo,the U.S. Postal Service, WingspanBank.com and CheckFree E-Bill Direct. Once enrolled, Countrywide customers receive one finalpaper bill by mail and then all future bills electronically. Customers can then view their bill on demand, review current and outstanding account balances and access full bill detail from their personal computer. Electronic payments made to Countrywide Home Loans will be processed by CheckFree Genesis 2000, an electronic billing and payment engine that allows billers to view, track and report the status of billing and payment events . All transactions are backed by a guarantee from CheckFree that protects consumers against unauthorized transactions or processing delays. Countrywide's website address is http://www.countrywide.com. and CheckFree Corp's is http://www.checkfree.com.

California Commissioner of Financial Institutions Walter J. Mix III has announced the implementation of a process to enable consumers to detect and report suspicious financial institution websites.The Department of Financial Institutions added procedures and a report format to its website that will permit the public to identify and report any site that may be falsely representing itself as a licensed California financial institution. The department is concerned that some may use the anonymity of the Internet to defraud consumers. The DFI's Internet address is http://www.dfi.ca.gov.

London Bridge Software Holdings plc, London, has acquired CheckFree's Mortgage Products Division and intends to make it part of the firm's North American operation, LBSS Inc. Based in Atlanta, LBSS provides a range of mortgage software products from residential construction and origination to servicing and default management.LBSS hopes that the acquisition will provide an opportunity to cross-sell distressed debt products to large banking customers. The company called the acquisition "another clear sign of London Bridge's growing commitment to success in the U.S. software business."

FiTech Systems Lending Division, Greensboro, North Carolina, and Freddie Mac have teamed up in an effort to further streamline the loan origination process.The companies made the announcement at the MBA's 85th annual convention in Chicago. Under the initiative, FiTech's loan origination system will be interfaced to Freddie's Loan Prospector and the companies will share and develop several technologies, such as workflow automation. "The ultimate goal," according to Bob Ryan, Freddie Mac's vice president of marketing, "is to make the entire lending process easier and less obtrusive for the borrower." Freddie Mac's Internet address is http://www.freddiemac.com.

Fannie Mae has expanded its main website (http://www.fanniemae.com) and turned it into a business-to-business site that includes a new electronic news service and "push" technology that allows industry partners to receive Fannie Mae announcements automatically."The reincarnation of fanniemae.com as a business-to-business site is an important and logical next step in providing our lenders and other industry partners with leading-edge technology tools that help them transact business more efficiently," said John Buckley, Fannie Mae's senior vice president for communications. The site is organized into five sections: current investor information, business applications and forms, general information, a resource guide for the news media, and an employment opportunities database. Fanniemae.com is hyperlinked to HomePath.com (http://www.homepath.com), Fannie Mae's website for consumers seeking information on the mortgage process and Fannie Mae products.

Finet Holdings Corp., an electronic commerce company based in San Francisco, has restated its financial results for the fiscal quarter ended July 31, reporting a consolidated net loss from operations of $2.5 million, compared with a $5.3 million loss in the previous quarter.Revenues increased to $7.8 million, up 533% from $1.2 million a year earlier. After restating for the pooling-of-interests acquisition of Coastal Federal Mortgage Co. and the acquisition of Mical Mortgage Inc., consolidated quarterly revenues were up 108%, Finet said. Coastal contributed $1.8 million in revenues and Mical contributed $2.5 million, while the rest of Finet's operations contributed $3.5 million, up 189% from a year earlier, the company said. Consolidated loan volume totaled $401 million for the quarter, up 385% from a year earlier.

Commonwealth Mortgage Assurance Co., Philadelphia, has introduced an online service that enables lenders to obtain mortgage insurance in seconds, according to CMAC.MI Online, a feature of CMAC's customer information and access system ServiceLink, will be available nationwide this fall, the company said. "With ServiceLink, [lenders] can access their account 24 hours a day to perform servicing transfers, cancel mortgage insurance coverage, print certificates, and more," said Lora L. Wasson, CMAC's director of product marketing. "Now, using the new MI Online feature, our customers can obtain mortgage insurance on demand." CMAC is the operating subsidiary of CMAC Investment Corp. CMAC's website address is http://www.cmacmi.com.

Alltel Information Corp., Jacksonville, Fla., may be talking to Dovenmuehle Mortgage, Schaumburg, Ill., the nation's largest subservicer, about a possible purchase of the company, sources have told MortgageWire.Alltel operates the largest service bureau for residential servicers. A Dovenmuehle spokesman would not comment on the matter, and Alltel officials did not return telephone calls. At the end of June Dovenmuehle subserviced $26.41 billion in loans, according to the Database Products Group, a MortgageWire affiliate. (Dovenmuehle has owned servicing of just $338 million.) Last year EDS, a technology firm, bought Wendover Funding, Greensboro, N.C., another large subservicer.

American Management Systems, Fairfax, Va., has announced the successful implementation of Amerin VIA, a Web interface that provides integrated links to Amerin Guaranty Corp.'s existing back-office functions.Through the new online system, lenders can inquire about the status of insured loans, payments, and coverage details. The technology allows Amerin's staff to focus on more intricate questions, as opposed to routine requests. American Management's website address is http://www.amsinc.com.

Freddie Mac has made a $100,000 commitment to the Mortgage Bankers Association's Year 2000 testing plan, the MBA has announced.The MBA Year 2000 Inter-System Readiness Test Plan is a multimillion-dollar voluntary program under which firms will test their systems with those of trading partners in a Year 2000 business environment. "At Freddie Mac, we've made Year 2000 readiness our top corporate priority," said James Cotton, Freddie Mac's vice president of Year 2000 Primary Markets. "We believe that the MBA Inter-System Readiness Test is an important and necessary step toward ensuring readiness for us and the mortgage finance industry." The plan, developed by the MBA Year 2000 Inter-Industry Test Subgroup, has also received $100,000 commitments from Alltel, Fannie Mae, and First American Real Estate Services. It will include test transactions relating to 15 critical business functions in origination, secondary marketing, and servicing, the MBA said. The test is scheduled to begin early next year.

Wells Fargo and BankAmerica are now offering borrowers Internet access to home equity loans.So far Wells Fargo has approved 1,600 applicants, totaling $10 million. Eventually, the San Francisco-based banks are expected to expand the service to mortgages, credit cards, and other loans. Wells Fargo reports that 28% of its home equity loans made through the Internet were to non-bank customers, compared with 20% through the bank's branches. "Customers don't care if they have an existing relationship as long as the bank is willing to lend them money," says Karen Shapiro, senior vice president and online channel manager at BankAmerica. Wells Fargo's website address is http://wellsfargo.com/home, and BankAmerica's is http://www.bofa.com.

GE Capital Mortgage Insurance Company, Raleigh N.C., announces several Internet applications designed for its lender and servicer customers.GE Mortgage Insurance Connect (www.gemiconnect.com) provides its Excel lenders with the ability to receive new commitments in a paperless environment. GE Mortgage Insurance Connest's Certiprint feature allows lenders and servicers to print mortgage insurance certificates or commitments for new and existing loans. The company reports that is processes 1,000 transactions per day on Certilink, including servicing transfers, claims, loan status reporting, account maintenance and billing. Certilink is used by more than 200 servicers.

James Noack, president of Monument Mortgage, a Finet company based in Walnut Creek, Calif., has resigned from his post but will remain a consultant to the company.The company said Mr. Noack plans to concentrate on unspecified entrepreneurial opportunities. Mr. Noack was instrumental in the development of Iqualify, an Internet site that offers borrowers the chance to receive an automated underwriting decision.

HomeShark Inc., a San Francisco-based online discount mortgage broker and national home listings service, will close its third round of financing next week, MortgageWire has learned.The $20 million round will be co-led by industry leaders Weiss, Peck & Greer Venture Partners and Hyperion Partners. HomeShark's website address is http://www.homeshark.com.

The announcement of management changes at LendingTree, the Internet lender based in Charlotte, N.C., has fueled rumors that the company is positioning itself for a possible IPO.LendingTree's chief executive officer, Doug Lebda, told MortgageWire that the company faces no funding problems, but he termed all financial options "viable" and did not quibble with rumors that a funding deal could come as early as the next 12-18 months. Mitchell York has been named president of LendingTree and Gene Lockhart, a former CEO of Mastercard International, has joined LendingTree's board of directors. Mr. York will be responsible for LendingTree's day-to-day operations. Prior to joining LendingTree, Mr. York was a vice president at CMP Media Inc., a technology publisher and media company. Mr. Lebda, who founded LendingTree, assumed the CEO post in connection with the other management changes. He said he will now focus on the strategic growth of the company, including increasing the number of lenders that list their products on the site. LendingTree's website address is http://www.lendingtree.com.

Online mortgage broker E-Loan, Palo Alto, Calif., has been selected by Bank Rate Monitor to provide additional mortgage qualification services to its website.The co-branded mortgage center will offer consumers access to a larger number of national and regional lenders, E-Loan said. By linking to the center from Bank Rate Monitor's home page (http://www.bankrate.com), consumers can access E-Loan's personalized features to help them decide on the best mortgage financing option and then complete the entire loan transaction online, E-Loan said. E-Loan's website address is http://www.eloan.com.

E-Loan, NetNoir--The Black Network, and the Los Angeles Urban League have announced a pilot program aimed at promoting home ownership and computer access among African Americans in Los Angeles.The program, Black Homes Online, will help people take advantage of Community Reinvestment Act mortgage loans. E-Loan, an online mortgage broker, has set up a CRA mortgage center at the pilot's website (http://www.blackhomes.com). People who apply for and obtain a CRA loan through the site will receive a free IBM computer and free Internet access for a year through NetNoir. Those who do not have access to a computer can take advantage of the program by using any one of three centers provided by the Los Angeles Urban League for program applicants. E-Loan's website address is http://www.eloan.com.

Alltel has donated $100,000 to the Mortgage Bankers Association of America's year-2000 readiness testing program.The contribution by the Jacksonville, Fla.-based software company will sponsor a portion of the MBA's Y2K testing that will facilitate coordination among third parties. "Coordinating the Y2K industry test is the best way to leverage resources and help protect our industry," said MBA executive vice president Paul Reid in lauding Alltel's commitment. The MBA's Year 2000 Industry-Wide Readiness Testing grew out of a subgroup of its Year 2000 Technology Committee. The subgroup is chaired by Lauren Meadows, Alltel's vice president of application development for its Mortgage Servicing Package. Alltel's website address is http://www.alltel.com.