Technology

It was 30 years ago that Lester Dominick founded MortgageFlex Systems Inc. And to prepare for the future, the company is moving into a new environmental-friendly headquarters in Jacksonville, Fla.

Technology provider Genpact Limited of Bermuda has been awarded a seven-year contract to provide services support to MERSCORP, Inc., the mortgage industry's electronic loan registry system.

In its first quarterly report as an independent company, CoreLogic, Santa Ana, Calif., had net income of $24 million, down from $29 million in the first quarter and $70 million one year prior.

Representatives of both Ellie Mae and PHH Mortgage Corp. used similar words about their teaming up in the Encompass360 Select program, that the technology involved provides seamless synergies to users.

Thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Acts, the federal government is making it virtually impossible to be a mortgage broker. By extending the application of the Truth in Lending Act to include mortgage brokers (formerly limited to "creditors") and clearly defining, and otherwise limiting, how brokers can be compensated (YSP is dead), the act is forcing brokers to rethink the way that they do business.

Customer loyalty. lofty goal, but what does it mean? And who are our customers? Is it just borrowers, or is it everyone we do business with? In today's tough mortgage market, with dramatically decreased origination volume, and consumer confidence in the mortgage industry at an all-time low, attracting new business has never been more competitive. Establishing and maintaining loyalty with borrowers, referral sources, vendors-all are paramount to long-term success.

It is no understatement to comment that the Internet has transformed the mortgage lending industry in many ways. The point-of-sale has been influenced tremendously, with borrowers quickly becoming accustomed to rate shopping during the refinance boom and lenders providing an ever-increasing number of online tools to cement relationships. That lenders are rarely able to replace the human element entirely is really not a surprise. With financial decisions of great magnitude, consumers feel better about things when there is a live, knowledgeable person to help them. But technology has taken lending a long way in making the loan experience better for consumers, and more improvements are on the way.

The new Internet generation of online-only customers and readers, along with businesses eager to explore their information technology options, is growing.Up to 70% of adults who use the Internet also use online banking, and only 7% of those who have signed up do not use it. Findings from Mintel Comperemedia also show that 30% of online bankers log on to pay their mortgages or credit cards.

As pure-play mortgage lenders continue to scramble to get warehouse lines, technologists say automation can help.Rob Katz, president at LOS Del Mar Database, contends, "The entity giving a warehouse line has to be confident that their partners are doing sound lending. How do you prove that if you don't have technology in place? Because there are so few sources for lines and they're restrictive, being able to demonstrate that you have the technology to move a loan through the pipeline quickly and efficiently is an advantage.

It is perplexing that something everybody agrees on can be slow to actually take place.

Mortgagebot, a Mequon, Wis., seller of electronic loan application technology, has reported some interesting results from a survey it commissioned. It found that just 18% of commercial banks are able to accept apps online, according to an article in our sister publication American Banker.