Technology

Kroll Factual Data has released an Independent Verification Solution, which helps lenders comply with the proposed FHA credit policy changes announced on Sept. 18, 2009. Under the proposed guidelines, mortgage brokers will no longer receive independent FHA approval for origination eligibility, but will instead be required to originate through an FHA approved lender. Since FHA approved lenders will carry the liability for broker-originated loans, they need to bolster their verification process to support the additional volume that will come from the correspondent channel, said Loveland, Colo.-based Kroll Factual Data in a prepared statement. Adding to this new strain on scarce underwriting and quality control resources is a new rule for FHA streamlined refinances which requires lender certification of the borrower's capacity to pay at the time of application. Kroll Factual Data will deliver capacity-to-pay verifications. According to Kroll Factual Data, the detailed billing and reporting that is included with the service increases traceability and transparency for Real Estate Settlement Procedures Act compliance. To give lenders an extra measure of protection against the risk of errors, Kroll Factual Data's verifications are backed by representations and warrantees of accuracy. Lenders can customize the solution to include additional types of verifications and risk assessment analytics as required for their specific risk management program.

Specialty servicer Wingspan Portfolio Advisors in Carrollton, Texas, is partnering with National Claims Filing LLC, Irvine, Calif., to automate the handling of claims audits and compliant filings with bankruptcy courts across the country. With bankruptcies rising quickly, the company says lenders and servicers need accuracy in filing the necessary "proof of claim" forms and exhibits in order to protect their rights when borrowers seek bankruptcy protection. Proof of claims are the basic forms used in bankruptcy proceedings that establish the validity of a lender's "standing" in the eyes of the court. Without an accurate and approved POC, a lender's access to proceeds from the sale of their mortgaged property can be denied or delayed, despite the lender's possession of documents signed at the time the loan was originated. National Claims Filing provides an automated POC preparation and risk management system. The system is designed to prepare the POC, attach all supporting documentation, and file the claim with the correct court in accordance with that court's specific filing conventions. Thus far in 2009, Chapter 13 filings rose 10.9% over 2008 levels, while Chapter 7 filings rose by 46.3%. These increases indicate that over two million borrowers will have declared bankruptcy in 2009, potentially representing over $400 billion in mortgage balances, said Wingspan CEO Steve Horne. Prior to this partnership, proofs were mostly done manually at Wingspan, which has 14 clients and specialty services over 7,000 loans at present.

In the latest step in its "green" initiative, Credit Plus Inc., Salisbury, Md., will allow supporting documents for corrections of inaccuracies on credit files to be directly uploaded into its system. In the past, explained Greg Holmes, national director of sales and marketing, this had been more of a manual process, with the documentation faxed or e-mailed in. Now, Credit Plus operates more efficiently, with all the information on one screen. The green initiative started three or four years ago at Credit Plus with e-fax. In June 2008, customers started receiving a one-page invoice with a link to a secure website to review account details. This initiative alone, Credit Plus said, saves 30 reams of paper a month. Mr. Holmes, interviewed at the MBA convention in San Diego, said the company would be rolling out in the next year a new technology that will contribute to a paperless disclosure delivery environment.

eLynx, Cincinnati, has launched an electronic closing network (eCN) service that lenders can integrate into their closing process to increase loan quality and provide more control in order to meet the government's new demands for more accurate closings. The launch, which came at the annual MBA show, is designed to help lenders ensure that borrowers and settlement agents have a better experience at the closing table. The technology firm said a top five U.S. lender/servicer is now using the eCN but did not name the company.

Global DMS, Lansdale, Pa., has unveiled a new technology tool that allows lenders to transfer and receive Home Valuation Code of Conduct compliant appraisals. Announced at the Mortgage Bankers Association convention in San Diego, the tool, AppraisalTransfer.com, is an online portal that hopes to solve the "portability issue" of appraisals, said Global DMS chief operations officer Matt McHale. While it is permissible to transfer appraisals, lenders are reluctant to do so, he said. Even if there is portability it is usually just a transfer between users of the same appraisal management company. With AppraisalTransfer.com the goal, said Mr. McHale, is to allow any lender to have access to the appraisal. (There is no charge to the lender.)

Pointing to a significant rise in income fraud, Rapid Reporting has launched AccountChek, an electronic verification of deposit service that helps lenders, brokers and servicers detect financial account misrepresentations. Unveiled at the MBA show, AccountChek leverages direct access to more than 10,000 financial institutions, including insurance and investment firms, to confirm the accuracy of borrower-provided account information. The company says AccountChek automatically analyzes each account for suspicious activities that could indicate potential mortgage fraud.

The MBA put out a 'request for proposal' to build a national fraud database only to later shelve the idea, but MERSCORP Inc. and Interthinx have moved ahead, deciding the issue is too important to ignore. At the Mortgage Bankers Association's annual convention the pair launched a national fraud prevention database that will allow lenders to seek, identify, and share suspected fraudulent activity on loan applications from the point of origination. The companies said MERS FraudALERT will help identify and prevent fraud through the sharing and reporting of key data among the more than 62 million loans currently registered on the MERS system. Lenders can submit loan application data and incident reports with suspected or confirmed fraudulent activity to a centralized database. The system will then notify other lenders who have connections to the loans, alerting them of possible problems.

Freddie Mac will now accept MISMO Version 3.0 standards around appraisal and loan delivery, joining Fannie Mae, which it said it would earlier this year. Specifically, Freddie has started the planning process for adopting MISMO Version 3.0 for loan delivery. Freddie said it is "exploring a fourth-quarter 2010 implementation date and will communicate additional details about our plans in the near future." The GSE called the migration to an industry-wide data standard "key to supporting a more consistent and efficient mortgage lending process, including streamlining the exchange of loan data among all industry participants." During the transition process Freddie will continue to support the current loan delivery format to provide lenders with time to adopt the new standard. MISMO Version 3.0 is schema-based and offers greater transparency and visibility in every aspect of a given loan.

Griff Straw, a veteran of 30 years in the mortgage banking industry, has joined appraisal management company Solidifi U.S., Chicago, as the company's president. Most recently he was a regional vice president for United Guaranty and prior to joining that company worked for Freddie Mac where he held management roles on several technology-related initiatives. In his new job, Mr. Straw will lead Solidifi as it looks to expand on its valuation services offerings in this country. Solidifi U.S.'s parent company is headquartered in Toronto and has been in business since 2004; in October 2008 it entered the U.S. market.

REOTrans, Los Angeles, is changing its name to Equator in order to facilitate the expansion of its technology solution, which automates and connects the residential default servicing industry. The transition is slated to take place at yearend, according to Chris Saitta, the company's CEO. "The company chose the name to represent its scope and purpose," he said. "The Equator is comprehensive yet precise and a point of change." The technology platform includes a configurable workstation, a marketplace, transactional web site, and a borrower self-service portal. Users of the system currently include 15,000 default vendors and 625,000 real estate agents to manage more than 150,000 transactions daily.