Technology

The risk that mortgage fraud will have a harmful economic impact in vulnerable markets is rising at an "unprecedented" rate, according to CoreLogic, a Sacramento, Calif.-based provider of fraud prevention technology and services to the mortgage industry.CoreLogic reported that its Core Mortgage Risk Monitor rose 5% in the second quarter after increasing 6.4% in the first quarter. The five major metropolitan statistical areas most at risk, according to the index, are Detroit-Livonia-Dearborn, Mich.; Memphis, Tenn.-Miss.-Ark.; Dayton, Ohio; Akron, Ohio; and Gary, Ind. The index measures collateral risk, which is "the risk associated with the accuracy of a residential property valuation and the sustainability of that valuation over the life of the mortgage due to the unique characteristics of the property, market, and mortgage contract participants," CoreLogic said. The company can be found on the Web at http://www.corelogic.com.

Overture Technologies, Bethesda, Md., has launched its Mozart Tape Cracking system, an automated program that enables secondary-market investors to convert the complex and nonstandard bulk loan data provided by primary-market lenders to their own internal formats.Primary-market sellers provide bulk loan data on "tapes," usually Excel spreadsheet files containing critical information on sets of loans offered for sale. However, because formatting and data within the spreadsheet vary from seller to seller, as well as by submission within the seller, the data must first be sorted and aligned to the investor's format before the investor can make a bid or begin to conduct due diligence, Overture said. The Mozart Tape Cracking system uses English-language rule management to speedily adapt and convert new file formats to an investor's internal database format. Overture can be found on the Web at http://www.overturetechnologies.com.

CUNA Mutual Group, Madison, Wis., has announced a partnership with technology firm K/P Corp. and strategic consulting firm Raine Media to re-engineer its document imaging supply chain via a new Web portal.CUNA Mutual projects that re-engineering will deliver a $3 million cost savings in the first six months. Fourteen different platforms used by its various business units to create documents will be reduced to two, including a supporting platform. Optimization of CUNA Mutual's business processes is expected to eliminate more than 1.6 million pounds of paper annually. The main infrastructure component of the project is an Internet portal to be deployed in three phases, the last one to serve CU members directly. CUNA Mutual can be found online at http://www.cunamutual.com.

Livonia, Mich.-based Dynatek Inc. has formed a "tight integration" with DocuTech, Idaho Falls, Idaho, that Dynatek says will give users of its MORvision loan origination system seamless access to DocuTech's Web-based document system, ConformX.The agreement identifies DocuTech, which has been a member of Dynatek's Plug-In Partner Network since 2004, as a preferred integrated document provider. It also allows for development of a fully integrated DocuTech system, which will replace its current Plug-In and provide MORvision customers with a choice between two distinctive forms systems -- a traditional one and an online system that enables DocuTech to manage all the compliance for the lender. The DocuTech ConformX product is a service-based solution that provides users with compliance guarantees and manages the forms process for the lender. The companies can be found on the Web at http://www.dynatek.com and http://www.docutech.com.

Interthinx, an Agoura Hills, Calif.-based ISO business that provides fraud detection and compliance tools for the mortgage industry, has announced ISO's acquisition of the Domus System, which provides automated compliance services to the affordable housing industry.The terms of the transaction were not disclosed. The Domus System collects, maintains, and reports on resident and property data electronically. "The affordable housing industry has a tremendous need for accurate and timely compliance reporting," said KC West, president of Domus Systems Inc. "Combining the fraud detection capabilities of Interthinx with the electronic data collection services of the Domus System will deliver a more robust automated compliance and reporting tool to our customers." ISO, Jersey City, N.J., is a provider of products and services that help measure, manage, and reduce risk. The companies can be found online at http://www.interthinx.com, http://www.iso.com, and http://www.domussystems.com.

GMAC-RFC has picked LoanIQ from First American Real Estate Solutions as its collateral risk-mitigation tool.LoanIQ deals with collateral fraud, considered the most damaging form because it creates actual dollar losses. Using a predictive model based on actual "bad loan" cases, LoanIQ provides two scores to help GMAC-RFC and other lenders fast-track low-risk loans through the system while flagging high-risk loans for further examination, First American RES said. FBI statistics show that mortgage fraud losses more than doubled in 2005, from $429 million in 2004 to more than $1 billion, the company reported. GMAC-RFC will incorporate LoanIQ into its existing collateral risk-mitigation system. The companies can be found online at http://www.gmacrfc.com and http://www.firstamres.com.

Yahoo! Inc., Sunnyvale, Calif., has announced an "extensive" revamping of its Yahoo! Real Estate website to provide consumers with new tools and services to buy, sell, or rent a home.The revamped site combines a database of more than 3 million homes with interactive maps, access to millions of instant home valuations, and mortgage tools with access to local market rates, Yahoo! said. "We've found that house hunters are most interested in prices, proximity to schools and restaurants, financing options, and home values," said Andrew Braccia, vice president of search and marketplace at Yahoo! "By integrating our leading maps, local and search products into Yahoo! Real Estate, we are giving home seekers fast and easy access to the comprehensive information they need to make the right buying or renting decision." The revamped site can be found at http://realestate.yahoo.com.

Markit Group Ltd., London, a provider of data and services to the global financial markets, has announced the acquisition of Chasen Enterprises, a Peekskill, N.Y.-based provider of modeling for collateralized mortgage obligations and asset-backed securities.The terms of the transaction were not disclosed. Markit said it will leverage Chasen's structured finance expertise to further develop its Reference Cashflow Database. Andrew Chasen, founder and president of Chasen, said Markit "has helped to build liquidity in the subprime residential mortgage market through ABX," a Markit calculator. Markit can be found on the Web at http://www.markit.com.

Conshohocken, Pa.-based MortgageHub has taken on a major investor -- ISGN Technologies Ltd., a global enterprise software company.ISGN is also part of the K.K. Birla Group, an Indian industrial group. The group runs professionally managed companies, with annual revenues of over $2 billion that have solid equity and capital market strength. The K.K. Birla Group is now investing in the U.S. mortgage market. On the other side of the deal, the move will extend MortgageHub's reach from servicing the top 10 lenders to offering its wholesale, retail, and correspondent lending platforms to a larger market base that will include the nation's top 80 lenders. Further details on the investment were not disclosed. MortgageHub can be found on the Web at http://www.mortgagehub.com.

SourceCorp Inc., a Dallas-based consultant and provider of business process outsourcing systems, has announced an expansion of its mortgage offerings.The new module, Electronic Loan Exchange, enables the secure electronic transfer of loan files between brokers, correspondents, servicers, and investors, the company said. It also employs an "electronic loan review room" where loans can be reviewed for due diligence before acquisition or electronic transfer to a buyer. The module represents the latest development of Fastrieve, SourceCorp's proprietary digital image repository. The company can be found on the Web at http://www.sourcecorp.com.