*Another Technology Acquisition*
**By Tony Garritano**
***Every technology provider is looking to flesh out their offering these days. As a result, we are seeing a lot of acquisitions close in the last few months. For example, Loan Logics, a provider of loan quality management and performance analytics, has acquired the assets of Parker & Company, a provider of risk management solutions in the mortgage industry.
****“The acquisition is strategic because it enables us to move LoanDecisions more deeply into the secondary market,” said Brian K. Fitzpatrick, President and CEO of LoanLogics. “It’s an investment that advances the capabilities of LoanDecisions to meet changes in the mortgage market. It gives us additional capability in the secondary marketing and risk management side of the business.” LoanDecisions is an eligibility and loan pricing solution that delivers accurate, real-time investor pricing and eligibility data.
****“This transaction enables LoanLogics to broaden its product base and mortgage industry expertise. The aim is to combine proven products to create a better customer experience,” said Les Parker, who will report to Fitzpatrick and assist him in strategic initiatives and growth of the business. “As a Master CMB I am committed to doing mortgage banking the right way. My vision fits with Fitzpatrick. We both see the need for investor, customer and regulator confidence to soar. It will when loans are manufactured right, managed right, analyzed right and monitored right.”
****In addition, the acquisition of Parker and Company’s key assets ensures that LoanLogics will have the technology and expertise necessary to support clients in a rapidly changing servicing environment. Parker, said, “Customers and their regulators don’t want black box answers. They want analytics where the results and inputs can be explained and understood. They want powerful pictures of risk to gain support for change.”
****There is a significant amount of regulatory pressure on larger institutions, relative to the amount of servicing they hold and the increased capital requirements that are required. As a result, many are divesting portions of their mortgage servicing portfolios–and smaller and midsize companies are acquiring it.
****“They need tools to be able to value their mortgage servicing rights and we anticipate significant growth in that area because more firms are in the business and there will be an increase in transactions as a result,” said Fitzpatrick. “As they acquire more servicing, they have more analytical needs relative to MSRs, and LoanHD is a performance analytics platform that will track and measures risk for them.” LoanHD delivers a single source solution to gauge and monitor risk in mortgage loan portfolios.
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.