Technology

The biggest buzz at SourceMedia's Mortgage Technology Conference in Tempe, Ariz., has been over a statement that LendingTree's participating lenders are not upset to hear that it is "thinking" of opening brick-and-mortar retail stores.That remark by LendingTree general manager Lori Collins continued to spark comment well after Ms. Collins made the statement in response to a question after her presentation on the Internet's value as a source of qualified mortgage leads. A number of lender attendees commented on the conflict between acting as a retail lender and LendingTree's role as a multilender marketplace where "when banks compete, you win." A competitive trigger for LendingTree to consider such a move may have been revealed in Monday's keynote address, when E-Loan senior vice president Pete Bonnikson told conference attendees that his company, another pioneer in online lending, has already opened "8 or 9" brick-and-mortar offices to leverage its back-office efficiencies to serve borrowers who prefer to deal face to face with a loan officer. LendingTree can be found online at http://www.lendingtree.com.

The First American Corp., Santa Ana, Calif., has announced the launch of MarketLinx, a company aimed at addressing the information technology needs of residential real estate professionals.The new company combines the strengths of First American subsidiaries First American MLS Solutions Inc., Offutt Systems, Sonic Eagle Inc., and Lucero Research Corp. to provide customizable technology for multiple listing services, brokers, and agents, the parent company said. "Our long-term strategy is centered on the development of a complete, online real estate platform that provides an integrated set of components to perform all of the functions that are important in a residential property transaction," said Stephen C. Roney, president and chief executive officer of MarketLinx. "Merging the technology and software assets of these companies into one organization offers ease of use for the real estate professional, who can now order several core products and services from one entity rather than multiple providers." The new company can be found online at http://www.marketlinx.com.

When E-Loan started up in 1998, its slick-looking website masked a clunky paper-based process. But now it is launching the electronic signing of closing documents in first-quarter 2007, and its back office is all but paperless.This was the story E-Loan senior vice president Pete Bonnikson told attendees in his keynote address Monday morning for the 10th Annual Mortgage Technology Conference in Tempe, Ariz. The key to online lending today, he said, is to give the borrower an instant decision communicated by a live loan consultant who gets the borrower to lock in a rate and submit a credit card for credit and appraisal. Mr. Bonnikson said E-Loan consultants succeed in that goal 25% of the time. He boasted that E-Loan now gets high marks from 95% of Realtors involved in its purchase loans. The Pleasanton, Calif.-based company can be found online at http://www.eloan.com.

The Mortgage Industry Standards Maintenance Organization, a subsidiary of the Mortgage Bankers Association, has formed an alliance with the Federal Housing Administration.MISMO said the purpose of the alliance is the development and publication of government standards for data and electronic mortgage transactions involving government entities within MISMO's framework and using its infrastructure. The FHA will join MISMO's Government Housing Workgroups, which are being developed with the help of Ginnie Mae, a MISMO ally since last fall. Members of the Government Housing Workgroups are expected to include representatives of interested government entities (starting with Ginnie Mae and the FHA) and private-sector companies. MISMO can be found on the Web at http://www.mismo.org.

Wolters Kluwer Financial Services, Minneapolis, and Regulatory Counsel Group, an Atlanta-based provider of regulatory compliance services for mortgage lenders, have announced that RCG will resell the Wolters Kluwer StateLink Web-based compliance tool to its customers.The companies said StateLink provides quick online access to regulatory information on various topics relating to first and closed-end second mortgages for all 51 U.S. jurisdictions, updated continually by Wolters Kluwer attorneys and analysts. "After extensive research, RCG chose to offer StateLink based on its succinct and detailed information, easy-to-navigate format, and the responsiveness of the StateLink support team," said RCG president Scott Scher. The companies can be found online at http://www.wolterskluwer.com and http://www.regulatorycounsel.com.

Internet Brands Inc., a Los Angeles-based operator of media and electronic commerce websites, has launched Loan.com, a website that assists users in finding ethical lenders with the lowest rates.The company said Loan.com provides an outlet for both wary consumers and frustrated lenders by creating a "Trusted Marketplace," where lenders agree to a set of ethical business practices and borrowers are educated about what to expect during the loan process. All lenders listed on Loan.com confirm their support for the Borrower's Bill of Rights, a set of ethical business practices that describe how they interact with the consumer. In addition, lenders in the Ethical Lender Directory are ranked on a star system that will include feedback from consumers on the site, the company said. Internet Brands can be found on the Web at http://www.internetbrands.com.

KB Home, a Los Angeles-based homebuilder, has announced the launch of KBHomeowner.com, a website that offers tools such as seasonal checklists and neighborhood guides.The checklists are aimed at helping homeowners keep their homes in peak condition, and the neighborhood guides provide information on community resources and local hot spots, the company said. "Visitors can also read tips on fun and easy home ideas, from 10 simple tips for organizing closets to growing strategies for kids' rooms," KB Home said. The new site can be found online at http://www.kbhomeowner.com.

Informative Research, Garden Grove, Calif., has announced launch of a free fraud prevention tool, Credit Score Verifier, that offers to reduce mortgage lender risk and loan fallout.The company said the proprietary Web-based utility was developed to enable a lender to verify credit scores reported by any of the repositories before undertaking the time and expense of underwriting the file or ordering a backup credit report. The tool addresses the risk associated with the increasing popularity of nontraditional loan types that allow for no documentation and stated incomes, where fraud is always a major consideration, according to an Informative Research spokeswoman. The enhanced tool, formerly called Credit Score Validator, provides a way to assure a lender that a paper copy of a credit report has not been altered, Informative Research said. The company can be found online at http://www.informativeresearch.com.

Ellie Mae, Dublin, Calif., has launched a banker division in response to the introduction of Encompass Banker Edition.The new division will focus exclusively on Ellie Mae's banker and lender clients and partners. Ellie Mae's client base includes over 3,000 mortgage bankers, according to the company. Encompass Banker Edition has already been adopted by two dozen companies since its launch in late October 2006, Ellie Mae reported. Jeff Benjamin, the company's director of sales, has become vice president of the newly created division and will report to Joe Langner, Ellie Mae's chief operating officer. Mr. Benjamin will focus on business development efforts among wholesale lenders and bankers -- including the promotion of Encompass Banker Edition and Encompass Custom Edition -- as well as the company's full range of connectivity solutions for the wholesale banking community. The company can be found on the Web at http://www.elliemae.com.

Using document images in the mortgage underwriting process is the most critical component of going paperless, according to an annual survey by Atlanta-based Advectis Inc.Advectis said 92% of its survey participants cited the use of document images in underwriting as critical to moving toward a fully electronic mortgage. The survey also found that 70% of respondents said it is very important that new technology integrate with existing systems, and 64% said it is very important to have a Web-based solution. In addition, enabling collaboration with other mortgage market participants and functionality throughout the loan processing life cycle were both cited as very important by 56% of the survey respondents, Advectis reported. The company can be found online at http://www.advectis.com.