Technology

Ellie Mae Inc., Dublin, Calif., will offer its ePASS users a direct connection to Freddie Mac's Loan Prospector automated underwriting system.Ellie Mae said the connection will provide customers two-way functionality between LP and the originator's desktop through ePASS, which stands for Electronic Pricing and Submission System. Mortgage originators can request and receive an LP assessment and roll that information directly into their loan origination system as part of the integration as well. Ellie Mae can be found on the Web at http://www.elliemae.com.

Innovations in mortgage servicing technology over the past 10 years have been very helpful in keeping families in their homes after a mortgage default, according to a study by Freddie Mac.The study by Freddie Mac deputy chief economist Amy Crews Cutts and Professor Richard Green of George Washington University found that repayment plans and loan modifications are very effective at keeping borrowers in their homes. "We found that repayment plans lower the probability of home loss by 80% among all borrowers and by 68% among low- to moderate-income borrowers," Ms. Cutts said. "In addition, for servicers, foreclosure alternatives cost less than acquiring the actual property, which may carry legal and home repair costs." Freddie Mac said innovations that have proven beneficial for borrowers and servicers alike include automated reporting, remitting, and tracking; automated voice response systems; and servicing tools based on credit scores. The technology has enabled servicing costs to fall "dramatically" in the past 10 years, from an average of $120 per loan in the early 1990s to $79 per loan in 2001, the government-sponsored enterprise said. Freddie Mac can be found online at http://www.freddiemac.com.

Updata Capital Inc., Red Bank, N.J., has released research explaining what is behind the recent increase in merger-and-acquisition activity in the financial technology sector.The investment banking firm, which specializes in M&As for the information technology industry, reported that four factors are contributing to the increase in technology M&As: the improved economy and resulting health of the capital markets, rising IT budgets, the impact of mandated regulatory changes, and lastly, the viability of new technology models to enhance profitability and accelerate sales. The complete Financial Monitor for summer 2004 can be viewed on http://www.updata.com.

Informative Research, a mortgage credit reporting company based in Garden Grove, Calif., has announced the formation of a technology-based partnership with IndyMac Bank.The partnership makes it easier to order credit reports from Informative Research via QuickPricer and e-MITS (electronic mortgage information and transaction system), IndyMac's proprietary online loan prequalification, pricing, and decisioning technology, Informative Research said. "This new functionality allows brokers to order or reissue Informative Research credit reports directly through QuickPricer and e-MITS for faster and more efficient loan processing," said Ondar Tarlow, vice president/director of Mortgage Bank Marketing at IndyMac. "e-MITS allows the user to submit loan application data and receive an online decision and pricing in less than a minute." The companies can be found online at http://www.informativeresearch.com and http://www.indymacb2b.com.

Irvine, Calif.-based Mavent Inc., a provider of automated compliance systems for the financial services industry, has selected AT&T to enhance its networking capabilities.According to Mavent, the three-year contract is valued at $1.4 million. The agreement makes it possible for Mavent to provide customers with around-the-clock service, security, monitoring, and automatic routing of data and other information, the company said. Mavent's automated compliance system is a rules-based application that provides the residential mortgage industry with consumer credit information, enabling lenders and investors to comply with federal, state, and local consumer lending laws, rules, and regulations. The AT&T solution also includes frame relay service and Business Internet Access Service for Mavent's headquarters. Mavent can be found on the Web at http://www.mavent.com.

Del Mar Database, San Diego, has released DocumentTrac, an electronic document management system that is integrated with DataTrac, the firm's automated back-office processing system.DocumentTrac makes it possible for lenders to electronically image, archive, retrieve, and distribute all paper documents associated with a loan file to an investor or other party, the company said. Through DocumentTrac, originators (including loan officers and brokers) can electronically submit documents associated with a loan file via fax, scanner, file upload, or print functions. Del Mar can be found on the Web at http://www.delmardb.com.

Countrywide Home Loans Inc., Calabasas, Calif., and previewproperties.com have announced the formation of propertymortgage.com as an operating unit of Countrywide Mortgage Ventures LLC.The companies said the joint venture will enable buyers and sellers of homes to gain access to more than 130 loan programs while simplifying the buying or selling process. Customers of previewproperties.com who choose home financing through propertymortgage.com will derive various benefits, including: a consultant who works closely with a previewproperties.com Realtor to develop personalized financing options; streamlined loan applications for borrowers with excellent credit; extended rate locks; and Streamlined UpFront Approval if there has been no change in the borrower's financial condition, and subject to a satisfactory property review. The companies can be found online at http://www.countrywide.com, http://www.previewproperties.com, and http://www.propertymortgage.com.

PMI Mortgage Insurance Co., Walnut Creek, Calif., has updated its Secondary Market Products Servicing System, rolled out pmiPaperless, and reworked its field sales, operations, and product development divisions.The company said the SMP enhancements include changes in the way the company will create and manage products, contracts, and relationships; bill and manage receivables; validate and board new loan instruments; and report on corporate results. Its new offering, pmiPaperless, is an electronic document managing system designed to enhance the efficiency of PMI's underwriting capability. Finally, the company said the restructuring of its field sales, operations, and product development divisions is expected to result in a $5 million to $6 million pretax expense savings next year. PMI Mortgage is a wholly owned subsidiary of The PMI Group Inc., which can be found on the Web at http://www.pmigroup.com.

Calyx Software, San Jose, Calif., will release a multibranch version of its Point product this fall, the company has announced at the Illinois Mortgage Bankers Association's first annual technology conference in Chicago.The new release was developed to make it possible for a large user to share files at a central headquarters, with access for an unlimited amount of branches. Dennis Boggs, Calyx's senior vice president of business development, said that "numerous multibranch owners and IT managers have shown strong interest in this connectivity."

In a move to become the No. 1 supplier of automated valuation models, the First American Corp., Santa Ana, Calif., has announced that it will acquire Basis100 Inc. in a cash deal valued at $33 million.The First American announcement notes that the AVM market has doubled each year for the last three years and estimates that 25% of mortgage loans qualify for an AVM in lieu of a standard appraisal. First American said it expects to benefit from significant cost synergies over the next six months that will result in total pretax earnings of $10 million on an annualized basis. The acquisition of Basis100 is expected to close in the third quarter after shareholder approval. The companies can be found online at http://www.firstam.com and http://www.basis100.com.