Technology

SharperLending LLC, a provider of a Web-based platform that enables lenders to order, store and manage products and services from multiple vendors at a single point of entry headquartered in Spokane, Wash., has partnered with CreditXpert Inc. to offer its users Credit Assure, a loan closing software tool that automatically pre-scans credit files and identifies opportunities to raise credit scores based on credit data accuracy and credit management.SharperLending's bundled services platform now allows lenders to access Credit Assure to quickly and efficiently perform due diligence on all credit reports. The SharperLending platform seamlessly integrates with Credit Assure to automatically alert users of potential issues that may be artificially lowering an applicant's credit score or credit management opportunities, which, if acted upon, may improve the applicant's credit. The company can be found on the Web at http://www.sharperlending.com.

The Federal Housing Administration is working on the first update of its automated underwriting scorecard, TOTAL, since it was introduced in 2004, according to a report by congressional auditors.The General Accountability Office takes FHA to task for failing to have policies in place to routinely update TOTAL (Technology Open to Approved Lenders), noting that the scorecard may have lost some of its effectiveness in predicting defaults. The GAO also raises concerns about the fact that FHA loans with downpayment assistance or "gifts" from nonprofit groups have higher default and claim rates than other FHA loans, but the scorecard does not include variables for the source of the downpayment. In response, the FHA says the scorecard is "working exactly as it was envisioned" and the contractors and loan data have been secured for the update of the technology. FHA is "revisiting" the issue of downpayments and whether the "source and amount of gifts for the downpayment should be added to the algorithm."

Digital Risk, a risk mitigation company providing tools designed to limit financial services firms’ exposure to fraud, has introduced "Risk IQ," a verification product that provides a "360-degree" risk assessment of mortgage transactions.The vendor, which introduced the product at the Mortgage Bankers Association's National Fraud Issues Conference in Chicago, said it is forging new ground in cost per transaction savings with the product. "This newer technology means better due diligence and a more cost-effective means for achieving it," said Jeffrey Taylor, CEO, Digital Risk. Risk IQ uses data sourcing and reporting operations capable of decreasing operational time by an average of 20% and is highly customizable, according to Mr. Taylor. "The black-box, one-size-fits-all model of the past simply cannot produce the results required to keep mortgage companies competitive in today’s marketplace," he said. "Some lender losses today are the result of using fraud prevention tools invented five years ago and not capable of fighting today’s sophisticated fraud," said Mr. Taylor. Peter Kassabov, president of Digital Risk added, "It’s a different market today, full of repurchase requests that are putting some companies out of business and others into court."

Citing artificial intelligence as the differentiator, United Mortgage Lenders, Boca Raton, Fla., has chosen MindBox's ARTOptimize product suite for its Bulls-Eye point-of-sale decisioning system.The artificial intelligence of the system takes it beyond pre-qualification and automated underwriting. "It can be taught how to behave and what to present to the loan officer," said UML president and CEO Jamie Thornton. "If a new investor enters the picture, we can teach the system the new investor's product eligibility rules, pricing & pricing adjustments by updating the rules in the MindBox Power Editor." The Greenbrae, CA-based MDA Mindbox's decisioning systems feature rule- and case-based reasoning software.

Silver Hill Financial LLC, a Miami-based real estate lender, has announced an alliance with NetBank Inc., an Atlanta-based online lender, to enable the latter to offer commercial real estate loans to its small-business customers.Silver Hill said it offers a customized approach that allows lenders of all sizes to become "instant commercial lenders" by relying on Silver Hill to perform back-office functions. "Our strategic alliance will allow [NetBank] to expand their product line and enhance their brand while we handle all the details of commercial transactions for NetBank's small-business customers," said Jerry Feinstein, senior director of correspondent lending at Silver Hill. The companies can be found online at http://www.silverhillfinancial.com and http://www.netbankinc.com.

Hanover Capital Mortgage Holdings Inc., a New York-based real estate investment trust, has reported a net loss of $700,000 ($0.08 per share) for the first quarter, compared with net income of $1.4 million ($0.16 per share) a year earlier.The mortgage REIT attributed the loss to the lower operating income of its REIT segment, primarily due to the difference in the gain on sale of mortgage assets. The sale of mortgage assets resulted in a loss of $100,000 in the first quarter, compared with a $2.3 million gain in the first quarter of 2005, Hanover reported. The company can be found online at http://www.hanovercapitalholdings.com

Overture Technologies has upgraded its Mozart AUS with the release of version 4.0 at the Mortgage Bankers Association's National Secondary Market Conference and Expo.Mozart is an automated underwriting, pricing, and product selection tool. The upgrades include enhancements to the product's pricing and administrative features and the addition of two new credit services and new fraud prevention tools. Mozart 4.0 also allows underwriters to reconcile a borrower's investment property assets, debts, and correspondent rental income to simplify underwriting for complex investment property situations. The company can be found on the Web at http://www.overturetechnologies.com.

Advectis Inc., Alpharetta, Ga., has announced the release of enhanced capabilities for electronic document transfer and investor delivery in its BlitzDocs Collaboration Suite.The added functionality, announced at the MBA's National Secondary Market Conference and Expo in Chicago, enables lenders to export imaged loan folders for secure, fast delivery to the secondary market. The new export capabilities give lenders and correspondent sellers the ability to assign loans, either pool or flow, for electronic delivery to specific investors or due-diligence providers. Once logged in to BlitzDocs, investors can access the assigned loans via a browser and import the document images directly into their internal imaging systems, Advectis said. The delivery is securely transmitted from the BlitzDocs network to the external parties. No additional software, integration resources, or programming is required for electronic loan delivery. Advectis can be found on the Web at http://www.advectis.com.

MERS has announced the launch of a new service to transport electronic documents from one party to the next.MERS's announcement at the Mortgage Bankers Association's National Secondary Market Conference and Expo in Chicago indicated that eDelivery was designed to help aggregators integrate their electronic mortgage technologies with those of their partners. The goal is that every party in the industry will integrate once to MERS and be able to electronically deliver documents to other parties without interfacing to several systems. MERS can be found on the Web at http://www.mersinc.org.

With 17 years of mortgage technology experience to his credit, Jordan Brown has formed MarketWise Advisors, a consulting firm based in Ponte Vedra Beach, Fla.The new company was launched at the Mortgage Bankers Association's National Secondary Market Conference and Expo in Chicago. The practice will focus on technology selection and implementation for the mortgage space, broker-to-banker conversions, and prepayment scoring and reporting, and will have a special division for technology mergers and acquisitions. "[T]here is a need in the marketplace for key secondary talent to streamline operational processes, benchmark performance, and create the process necessary to sustain a competitive edge," Mr. Brown said. The company can be found on the Web at http://www.marketwiseadvisors.com.