Technology

Residential Funding Corp., Minneapolis, has announced the introduction of a new automated valuation model platform that it says will reduce costs and streamline the underwriting process for mortgage lenders and homeowners.GMAC-RFC said the new AVM platform enables it to obtain more accurate automated valuations from more geographic areas. The company said it will use the platform "to provide lenders and brokers more options to close loans without the need for a full appraisal on a higher percentage of transactions." The integration of the new AVM platform into the company's Assetwise automated loan evaluation tool enables GMAC-RFC "to choose the best AVM result available, based on such parameters as geography, estimated value, and loan amounts," the company said. Dan Bettenburg, GMAC-RFC's executive vice president for e-commerce, said the company's research indicates that "to provide cutting-edge appraisal alternatives that will have an impact similar to automated credit evaluations, it's necessary to use several different AVMs, where each provides the most value based on their respective strengths." GMAC-RFC said it has partnered with First American Real Estate Solutions to build the new platform, which will incorporate AVMs from Basis100, First American, and Veros. The companies can be found online at http://www.gmacrfc.com, http://www.firstamres.com, http://www.basis100.com, and http://www.verovalue.com.

GCC Servicing Systems, Southfield, Mich., is currently developing GServ, which will be a Web-based solution that will allow bank tellers and loan officers access to a customer's mortgage loan information.The new servicing product will make it possible for banks to use the core processing system of their choice and at the same time giving tellers and loan officers access to customer mortgage information via an Intranet setup to the bank's servicing information on the GCC platform. GServ has an anticipated release date of October of 2004. GCC is a mortgage service bureau, mortgage servicing technology and service provider that can found on the Web at http://www.gccservicing.com.

ComplianceEase, San Francisco, has updated its PredatorAnalyzer product to allow mortgage originators and issuers of residential mortgage-backed securities to obtain the anti-predatory-lending loan categorization required by Standard & Poor's.Effective July 1, loans subject to certain anti-predatory-lending legislation and sold into rated securities must be categorized and identified as "home loans," "covered loans," or "high-cost loans" in the loan-level information submitted to LEVELS -- the S&P risk analysis system. ComplianceEase said it responded to this development by enhancing its PredatorAnalyzer system to automatically categorize loans according to S&P requirements. The company can be found on the Web at http://www.complianceease.com.

With interest rates rising, now is the time for companies in the subprime market to consider investing in technology, according to Ty Jenkins, owner, founder, and chief executive officer of DocuTech Corp.Mr. Jenkins joined Elizabeth Green, chief information officer of Paragon Financial Corp, at the last panel of the Subprime Lending Symposium in San Francisco to discuss the use of technology to mitigate compliance risks. "Take advantage of the opportunity today," Mr. Jenkins said. "Four years from now, interest rates will be dropping again and there will be even greater volume. Make sure you're prepared." While everyone wants to increase volume, Ms. Green said it's important to maintain a strong business operation while taking advantage of new opportunities in technology. She advised those in the industry to look at where their business is today and where they see themselves going. "Technology is stronger than ever," she said. "But it is not a magic bullet. It is part of the overall design. You are going to have to spend money and invest time to make it work for you."

Nicholas Hahn, formerly an executive with Countrywide Home Loans, has been named chief financial officer of DeepGreen Financial, a Cleveland-based online business-to-business home equity lender.Mr. Hahn's expertise will help DeepGreen expand its securitization and asset sales programs, said Jerome Selitto, DeepGreen's chief executive officer. Mr. Hahn was executive vice president for production accounting at Countrywide, where he was responsible for all accounting and management reporting for the company's mortgage production divisions, DeepGreen said. The B2B lender can be found online at http://www.deepgreenfinancial.com.

Leader Mortgage Co., Lenexa, Kan., has deployed Hasbrouck Heights, N.J.-based PaperClip's software to enable paperless mortgages with Calyx Point.Leader installed PaperClip32, PaperClip's flagship integrated document system, and its Mortgage Assistant loan processing add-on module. The combined system makes it possible for Leader to manage all its loans from a central digital repository through which all permitted users can search, retrieve, route, process, validate, and approve loans. The companies can be found on the Web at http://www.leader1.com and http://www.paperclip.com.

ElectronicAppraiser.com, Boca Raton, Fla., has release PhotoCheck, a valuation product designed to combine a professional site inspection with an exterior digital photograph and property condition report.The reports are available in Adobe PDF, XML, and HTML formats. ElectronicAppraiser.com also offers an expedited 48-hour service. PhotoCheck can be ordered as a stand-alone report or in combination with any valuation product. ElectronicAppraiser.com is a valuation technology provider, featuring two main products: PhotoCheck, an electronic property photo combined with an automated valuation model report, and AVMLink, which provides access to several national AVM providers. The company can be found on the Web at http://www.electronicappraiser.com.

Technology has increased volume and efficiency in the subprime market, WMC Mortgage Corp. president Amy Brandt told attendees Monday at the Subprime Lending Symposium in San Francisco.WMC, an online wholesale lender based in Woodland Hills, Calif., was recently acquired by General Electric's consumer finance division from Apollo Management LP. Having a quick, front-end service combined with a customer service campaign was crucial in making WMC's volume rise in recent years, said Ms. Brandt, who was a keynote speaker at the symposium. "Your business has to evolve. .... All of your systems need to work together before funding the loan," she said. "Integrate technology, but with a human process." For example, Ms. Brandt suggested taking five minutes to call a broker to let him know his loan application has been received.

Countrywide has chosen Calabasas, Calif.-based Sysdome Inc.'s Third Party Review product to help streamline its broker approval and maintenance process.Specifically, Sysdome's TPR tool verifies broker application information against Sysdome's databases and other public and nonpublic data sources and presents its findings in an exception-based report. As part of the agreement, Countrywide would receive continuous broker updates as well as semiannual renewals. Sysdome can be found on the Web at http://www.sysdome.com, and Countrywide can be found at http://www.countrywide.com.

Home Counselor Online, a Spanish-language technology tool aimed at promoting homeownership among Hispanics, has been launched by Fannie Mae.The free Web-based tool will help counseling agencies, nonprofit groups, and other entities guide potential homeowners through the mortgage process via user-friendly counseling support, Fannie Mae said. It also enables lenders to track the progress of potential borrowers. "Home Counselor Online is part of Fannie Mae's efforts to help housing partners modernize or transform housing counseling practices, in addition to moving the minority homeownership rate," said Fannie Mae. "With the launch of its English version in November 2001, more than 1,157 counseling agencies and lender offices have set up this technology tool, with over 103,221 clients served by them." Fannie Mae can be found online at http://www.fanniemae.com.