Technology

For lenders who are concerned about "subpar" appraisal quality, it's important to have a technology platform in place to manage multiple AMCs and compare the work of different outsource vendors in order to determine which ones are the best to use.

Now that the industry has moved to a full-doc environment, application misrepresentation is happening on the back end of the business where "it's like doing new origination" and there is the most room for potential fraud in documentation.

Real estate property valuations are repeatedly called the cornerstone of the mortgage transaction and more so in a volatile marketplace where the REO inventory keeps growing and home prices are volatile at best.

Borrower credit scores and ways to assess risk are a priority and expected to become increasingly more important to the financial services industry.A provider of analytics and decision management technology, FICO of Minneapolis reports over 2,500 banks and financial institutions have adopted its FICO 8 Score, used for consumer credit risk assessment inquiries.

In the first half of this year, DocuTech Corp., a compliance services and document technology firm, has added 25 new clients."We are experiencing one of the most trying times in the history of the mortgage industry with regard to meeting regulatory demands and managing numerous operational challenges," said Scott K. Stucky, chief operating officer of Idaho Falls, Idaho-based DocuTech.

Dorado Corp. has received a Notice of Allowance from the U.S. Patent and Trademark Office for the method it created for processing a loan application (including mortgages). The notice means the government is likely to issue a patent.

Download the August 2010 issue of Mortgage Technology magazine. In this issue:

Independent private equity firm Monitor Clipper Partners has invested "an undisclosed amount" in Denver-based Mortgage Cadence, a provider of enterprise lending solutions, loss mitigation technology and document services.

A study based on borrowers' cognitive psychology reactions may change what mortgage documents will look like three years from now.In a classic case where science plays "the devil's advocate" for the mortgage industry, a couple of academics are researching the fluid relationship between borrowers and their mortgages to see where it might be improved.

So-called paperless mortgages still have a long ways to go, but the number of people who believe they could be a few years away from a 50% penetration of the market has grown in the last two years, according to a survey on the topic that is done roughly every other year.