Technology

Zoot, Bozeman, Ariz., has created a set of tools to help consumer credit grantors comply with so-called red-flag regulations. Section 315 and Section 114(B) of the FACT Act mandate that financial institutions manage and reduce the risk of identity theft fraud for customers. Any organizations, including nonlenders such as brokers and auto dealers, that use consumer credit data are required to comply with red-flag regulations by Nov. 1, 2008. To satisfy red-flag requirements, programs must have reasonable policies and procedures for detecting, preventing, and mitigating identity theft; demonstrate the ability to identify relevant patterns of activity considered red flags, including address discrepancies; and undergo periodic updates to reflect changes in risks from identity theft. Zoot's tool automates the process of complying with these regulations. The vendor can be found on the Web at http://www.zootweb.com.

Strategic Recovery Group LLC, a national mortgage asset recovery company based in Plano, Texas, has launched a special servicing unit, Acqura Loan Services, to meet the growing needs of lenders, hedge funds, and investors in distressed debt. Acqura, which began hiring personnel and developing proprietary scoring and servicing technology in mid-2007, offers a full spectrum of servicing, loss mitigation, and collection services and creates a customized risk-management solution for each of its clients, the parent company said. "At this stage in the credit cycle, lenders, Wall Street, and MBS/ABS investors realize they are facing a triple threat: the prospect of recession, the credit/liquidity problems, and falling home prices," said David Vida, chief executive officer of both Acqura and its parent. "What investors and issuers are looking for now are focused, innovative partners who can commit to higher service levels and deliver experienced asset managers and the latest technology to achieve better outcomes for both borrowers and investors."

On the heels of approving the acceptance of DocuSign electronic signature technology, Wells Fargo has announced that it will now accept e-disclosures and e-1003s from eLynx and Encomia as well. Specifically, Wells Fargo Funding will accept Encomia's e-disclosures and e-1003 product offerings in a move the lender calls the first step toward full e-mortgage adoption. Encomia's e-disclosures are designed to allow borrowers to review and e-sign their upfront disclosures and loan applications. Similarly, Wells Fargo Funding has approved eLynx's uSign and SwiftSign electronic signature services for use by all its correspondent lenders. Correspondents will now be able to choose uSign and SwiftSign to incorporate e-sign capabilities into their lending operations. The vendors can be found on the Web at http://www.encomia.com and http://www.elynx.com.

Zillow.com, Seattle, has announced the launch of Zillow Mortgage Marketplace, which it describes as a transparent lending marketplace offering borrowers "an anonymous and hassle-free way" to request custom loan quotes from registered lenders. Zillow said the marketplace includes "the industry's first-ever public feedback system" whereby borrowers rate the lenders they contact. Potential borrowers can request customized quotes by filling out a detailed loan request form that is submitted to lenders who have registered on Zillow and been confirmed as mortgage professionals. "Loan shoppers tell us they want real quotes -- not just teaser rates -- when doing their research online, and they want to control who and when they contact by shopping anonymously until they are ready to talk," said Rich Barton, chief executive officer and co-founder of Zillow.com. Consumers can access the Zillow Mortgage Marketplace by clicking on the Mortgages tab on Zillow's website at http://www.zillow.com.

The National Consumers League has announced the launch of MortgageTown, a website aimed at helping prospective buyers understand the risks and benefits of homeownership. MortgageTown explains "nine essential steps" to financing a home, advising consumers on choosing the right loan, closing on a home, protecting themselves from fraud and predatory lenders, and preventing foreclosure. "MortgageTown is a user-friendly and reliable source where consumers can become better versed in the process of getting a mortgage and what pitfalls to avoid as they head down that road," said NCL executive director Sally Greenberg. The new website can be found online at http://www.mortgaetown.org.

DocuSign, a Web-based electronic signature service, has announced its selection by Wells Fargo Funding as an approved electronic signature vendor. The Seattle-based DocuSign said its service enables loan originators working with Wells Fargo to speed up the origination process by getting disclosure documents signed electronically. "With DocuSign's enterprise-class eSignature service, originators can now get required documents, such as truth-in-lending notifications and 1003 applications, signed by borrowers in a matter of minutes, rather than the days needed for paper-based signing," the company said. DocuSign can be found on the Web at http://www.docusign.com.

MISMO and the Property Records Industry Association have published an Intellectual Property Rights Disclosure Draft of business requirements for recording instruments in common electronic document formats. The 30-day IPR draft covers six major objectives: preparing electronic instruments so they are electronically recordable; uploading or transmitting such instruments to electronic closing systems and other platforms; executing the instruments; delivering recordable instruments electronically from e-closing systems to systems in public land records offices; e-recording electronic instruments; and enabling the return of e-recorded (or rejected) electronic instruments to the e-closing platforms, or the retrieval of such instruments by e-closing platforms. The Mortgage Industry Standards Maintenance Organization, the not-for-profit data standards subsidiary of the MBA, can be found online at http://www.mismo.org, and PRIA can be found at http://www.pria.us.

A.M. Best Co., Oldwick, N.J., has announced the launch of Best's Title & Mortgage Guaranty Center, a Web portal that provides access to information generated by the company on title insurance and the mortgage guaranty industry. Content available on the site includes Best's ratings of title insurers, links to Best's rating methodology documents and relevant industry research, and news stories related to the title industry from A.M. Best's news publications. Best's Title & Mortgage Guaranty Center can be found on the Web at http://www.ambest.com/title.

Losses from mortgage fraud will reach $2.5 billion in 2008 and comparable losses will continue for several years thereafter, according to new research from TowerGroup, Needham, Mass. The report says the substantial rise in mortgage fraud over the past 10 years is an important factor in mortgage credit woes, though falling home prices and poor mortgage underwriting have been given most of the blame in recent months. TowerGroup anticipates that lenders will respond by deploying technology to assist in the detection and prevention of mortgage fraud and that their annual spending on such tools will reach several hundred million dollars in the next few years. The research and advisory company can be found on the Web at http://www.towergroup.com.

First American eAppraiseIT, Poway, Calif., has announced the introduction of a valuation tool that it says offers quick, low-cost, accurate values for credit decisions, loss mitigation, portfolio analysis, and quality assurance. The standard Data Assist report verifies a property's legal address and ownership and includes three closed-sale comparables from the subject property's market area, the company said. Data Assist with Listings offers the same information, plus three current listings that are similar to the subject property. "Many lenders are now looking for more alternatives [to automated valuation models]," said Michael Fosser, senior vice president of business development for eAppraiseIT. "Data Assist can provide a high level of confidence without adding significant cost or delay to these transactions." The company can be found online at http://www.eappraiseit.com.