Technology

IBM and ILog have signed an agreement regarding a proposed acquisition of ILog by IBM. The deal will be implemented by way of concurrent cash public tender offers in both France and the United States. Through the proposed transaction, IBM will combine its business process management, business optimization, and service-oriented architecture technologies with ILog's business rules management system software. The cash tender offer will be at a price of 10 euros per ordinary share and the U.S. dollar equivalent per American depositary share based on the euro/U.S. dollar exchange rate as of the settlement of the tender offers. This amounts to a purchase price of approximately 215 million euros ($340 million) on a fully diluted basis. ILog's board has approved the transaction and, subject to the receipt of a satisfactory fairness opinion regarding the financial terms, is expected to give a final recommendation before Sept. 15, after which the offer should be filed with the French stock exchange authority. IBM has received commitments from certain shareholders to tender their shares to the contemplated offer, which represent approximately 10% of ILog's issued share capital. ILog can be found at http://www.ilog.com.

First American Loan Production Solutions, Dallas, has announced the expansion of its borrower identification data and workout options to create a complete loan modification system designed to help servicers prevent foreclosures. The new offering combines credit scoring, valuation services, risk modeling, scoring, document preparation, and document recording to identify borrowers who are most at risk of foreclosure, the company said. Borrower refinance and workout options are then presented, and documents needed to complete the loan modification process may be created. "First American is bringing a single, complete loan modification cycle solution to servicers that will enable them to meet their bulging workloads by working out as many loans as possible," said Randy Gilster, president of First American LPS. The system enables servicers to actively monitor their portfolio and pinpoint loans at risk of foreclosure so pre-emptive loss mitigation steps can be taken. First American can be found online at http://www.firstam.com.

SigniaDocs, a Houston-based provider of electronic mortgage services, has announced a new service aimed at protecting lenders against claims of improper disclosure processes. The service, called eSign eNsure, enforces compliant disclosure and closing practices by warranting the good-faith estimate, the truth-in-lending statement, and annual percentage rate calculations via the creation of electronic date-and-time stamps in key disclosure areas, signifying borrower understanding and acceptance of the loan conditions. Developed in collaboration with Shanks Darby PC, a Houston-based law firm specializing in commercial and residential real estate law, eSign eNsure creates a legal representation and warranty around electronic loan document disclosures. "Electronic initials can be placed anywhere on the document that you want to direct the borrower's attention," said Tim Anderson, president of SigniaDocs. "You can require electronic initialing in those areas of the documents where you want to show electronic evidence of borrower proof of understanding and intent." The company can be found online at http://www.signiadocs.com.

Savvis Inc., a provider of IT infrastructure services based in the St. Louis area, has announced an agreement with mortgage industry software provider Ellie Mae, Pleasanton, Calif. Under the agreement, Ellie Mae will relocate and consolidate its U.S.-based information technology infrastructure into two Savvis data centers in Santa Clara, Calif., and Chicago. This will enable Ellie Mae to deploy its Web-based business services, including its Encompass Mortgage Management Solution, with greater efficiency and at a lower cost, Savvis said. "Savvis' global IT services platform has allowed us to consolidate and simplify our infrastructure by providing us with a streamlined and unified environment that not only synchronizes data more efficiently, but also offers a more consistent operation," said Jonathan Corr, chief strategy officer of Ellie Mae. The companies can be found online at http://www.savvis.net and http://www.elliemae.com.

Former Mortgage Cadence CEO and mortgage technology veteran Michael Hammond has started a new consulting firm called NexLevel Advisors. NexLevel Advisors, a strategic business advisory firm, will assist in helping clients create new opportunities and executable business strategies. "We add value through strategic advice specific to your company," Mr. Hammond said. "We deliver customized differentiation in the marketplace for your organization while producing measurable results. What this means for your business is that you get customized programs quicker and more strategically than you could on your own." The company can be found on the Web at http://www.nexleveladvisors.com.

San Jose, Calif.-based Calyx Software has expanded the Calyx Network with a new network interface update. The July Calyx Network Interface update contains a new connection to five additional mortgage service providers. The Calyx Network allows users of Calyx Software's Point loan origination software to connect directly with lenders and mortgage service providers, automating data exchange and streamlining the loan origination process. The following mortgage service providers have joined The Calyx Network: RealEC Technologies, SearchMyLoan.com Inc., Mortgage Connect LP, LOAlert.com and Equifax Web Services. Updates are automatically installed into Calyx Point, and new providers are added to the application on a bi-monthly basis. The Calyx Network Interface update is automatically installed into Point versions 5.2 and higher when users open their software and connect to the Internet. The company can be found on the Web at http://www.calyxsoftware.com.

Cogent Road, San Diego, Calif., has launched an automated tool for detecting if a credit score has been artificially inflated due to questionable or untrustworthy "authorized user" accounts within the borrower's profile. This process is known as "piggybacking," because the borrower's credit score "piggybacks" on the seasoning and payment history of the actual card holder. The tool is available free of charge to Cogent Road's existing Funding Suite clients. The application examines credit reports to detect the probability that a borrower's credit score is being artificially manipulated based on a different individual's payment history. Using a series of comparative algorithms, this detection tool analyzes the borrower's credit profile as a whole to detect whether or not authorized user tradelines are consistent with his or her historical payment pattern. This tool can also differentiate the bona fide authorized user relations that occur in joint credit applications, however it does identify if the spouse's credit score is influenced by authorized user accounts. The company can be found on the Web at http://www.cogentroad.com.

Lydian Data Services, Boca Raton, Fla., has established Lydian Data Government Services, a new fully integrated subsidiary to provide mortgage processing, closing, post-closing and quality control services for FHA and VA loans. This rapidly expanding sector of mortgage lending has been hampered by a lack of expertise in processing government loans, leading to long delays in loan approvals and fundings. The new subsidiary will also offer consulting services to help originators become approved by the Federal Housing Administration, and training services to help lenders familiarize their Realtors, loan officers and brokers with government lending programs. Lydian Data Government Services is based in the greater Philadelphia area, selected for its proximity to one of the country's largest FHA homeownership centers and the depth of its government lending labor pool. The Government Accounting Office expects FHA to fund 10% of home purchases in 2008 and 15% in 2009, continuing to levels not seen in over a decade, which is why Lydian has launched this new subsidiary to help lenders automate the process.

Enterprise content management vendor Hyland Software, Cleveland, has acquired Liberty Information Management Systems to expand its market presence. The transaction was private, and terms of the agreement were not disclosed. Hyland said the acquisition will enable it to add more than 1,000 Liberty IMS client organizations to its base of 7,200 customers and extend its reseller channel base with an established network of Liberty IMS channel partners, who possess expertise in selling and supporting document imaging, COLD/ERM, and workflow systems to organizations in Hyland's target vertical markets. The company also said the move would broaden its presence in the western United States and central Canada by maintaining Liberty IMS's offices and an existing team of experienced ECM professionals in Costa Mesa, Calif., and Ottawa, Ontario. Moreover, as a heavily channel-focused organization, Liberty IMS brings to Hyland an established network of channel partners. Hyland can be found on the Web at http://www.onbase.com.

Reverse Mortgage Solutions, Houston, has reported the completion of a $25 million Ginnie Mae fixed-rate home equity conversion mortgage-backed securitization on which it served as issuer, servicer, and master servicer. Bob Yeary, chief executive officer of RMS, told MortgageWire that Ginnie Mae has identified the transaction as the first reverse MBS on which a single company has taken on all three of the aforementioned roles, something the Houston-based firm's automation helped it to do. World Alliance Financial, the Melville, N.Y.-based affiliate of KBC Bank, Brussels, originated the reverse mortgages in the transaction, Mr. Yeary said.