Market Analysis
Big Appraisal News
By Tony Garritano
I know we just got through UAD, and here comes another deadline. It seems like it’s never ending, and it is. On a positive note, technology vendors are there to support our industry and they’re doing a good job. For example, PROGRESS in Lending has learned that a la mode announced today that Mercury Network is submitting live appraisals to Uniform Collateral Data Portal (UCDP) well ahead of the December 1st GSE deadline. What does this mean to you? Here’s all the details:
The announcement follows the elevation last week of a la mode’s Mercury Network UCDP integration from “beta” stage to live production status, after months of extensive internal testing of the interface and APIs. Prior to that, a la mode had already received their notice from Fannie Mae, Freddie Mac, and the UCDP vendor, Veros, on October 19th. The Production Certificate from Veros means that a la mode’s direct connection to the Uniform Collateral Data Portal (UCDP) has been thoroughly tested and ready for full scale production.
The Uniform Mortgage Data Program (UMDP) was created jointly by the GSEs at the direction of the Federal Housing Finance Agency, in order to standardize common requirements for appraisal data. As part of the program, appraisals for conventional mortgage loans originated on or after December 1, 2011, and delivered on or after March 19, 2012 must be submitted to the GSEs via the UCDP platform.
“The GSEs’ UCDP mandate is a huge transition for every lender and appraisal management company,” said Jennifer Miller, EVP of Products for a la mode’s Mortgage Solution Division. “We’re proud to have Mercury’s direct integration completed early in the process because successful submission to the GSEs is a critical lynchpin in any lender or AMC’s workflow. Since our lender and AMC clients are among the largest in the nation, they expect us to be both reliable and timely, and that’s exactly what this means.”
“Veros congratulates a la mode on receiving production certification for direct integration to the UCDP portal for their Mercury Network clients,” said David Rasmussen, SVP of operations at Veros Real Estate Solutions. “UMPD and its related programs have already had a significant and positive impact on the mortgage industry in increasing standardization and transparency. Companies like a la mode, who are actively implementing these types of solutions are solidifying UMDP’s objectives and moving the industry forward.”
Lenders and appraisal management companies using Mercury Network’s direct integration have several enhanced benefits over other submission methods, including full management and audit trail of the entire appraisal file with integrated UCDP status, automatic revision requests sent to their appraisers when needed, and built-in error-checking before submission to the GSEs.
In addition to Mercury Network’s Web-based management platform, tens of thousands of lenders, AMCs, and appraisers are already using a la mode’s recently-released UAD Reader tool to assist in UCDP compliance and submission. UAD Reader is a streamlined free desktop application (www.alamode.com/UADReader) that properly reads and displays cryptic UAD XML files, and compliance-checks the XML appraisals against an extensive rules database. Anyone using UAD Reader can simply click a button to submit any appraisal from any forms vendor directly to UCDP, which uses a behind-the-scenes connection to Mercury Network’s certified UCDP integration.
This is big news because it shows that at the very least, one vendor is ready to assist lenders in making the transition to a data-driven appraisal delivery process.
ABOUT THE AUTHOR: 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 tony@progressinlending.com.
Now We Know The Web Has Come Of Age
By Tony Garritano
You know the Web is here to stay when lenders are going to the Web when it comes to handling their accounting needs. That info is so sensitive. You would not do your accounting on a technology that you didn’t trust, it just wouldn’t happen. Now we’re seeing vendors use the Web to streamline accounting and make the process even more secure. PROGRESS in Lending has learned that Advantage Systems, a provider of accounting and contract management tools for the mortgage and real estate industries, announced that the Web-Based Branch Reporting Tool within its Accounting for Mortgage Bankers system has been implemented by more than 2,700 retail branches across the United States.
Developed in response to the growth in retail branching, the Web-based branch reporting tool within AMB enables mortgage lenders to provide their branch managers with real-time information such as loan-level profit and loss reports, branch check register and originator performance reports via the Internet. The system also has role-specific views that can be established and restricted by the organization’s executives.
Through the Web-based reporting tool, branch managers have easy access to vital day-to-day operating information, without placing phone calls to company headquarters. This eliminates the burden on the accounting department while providing updates on loan status and financial progress, enabling branch managers to function with more flexibility, authority and timeliness.
Earlier this year Advantage Systems launched its Loan Officer Reporting Tool as a module within the AMB accounting system. This tool builds on the capabilities of the Web-based Branch Reporting Module, drilling down further to give loan officers access to real-time loan-level data for each loan they have funded. The module provides each individual loan officer access to reports to help better track performance.
“As regulations continue to affect brokers and move them into retail branch environments, the Web-based branch reporting tool helps them maintain the necessary level of independence and accountability,” said Brian Lynch, president of Advantage Systems. “The technology helps branch managers focus on growth and funding loans instead of administrative tasks. It also enables the parent company to foster streamlined, transparent relationships with its branches through the reporting of real-time data.”
ABOUT THE AUTHOR: 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 tony@progressinlending.com.
Searching For Quality
By Tony Garritano
Vendors have a responsibility to help lenders originate quality loans. That means incorporating new technology or integrating to other technologies. To this end, PROGRESS in Lending has learned that ISGN Corp. now offers a MORvision Premium Plug-In integration into Fannie Mae’s EarlyCheck service. EarlyCheck automatically provides loan level data checks to assist in identifying and correcting potential data issues early in the loan process and prior to loan delivery. Lenders using the MORvision loan origination system can access Fannie Mae’s EarlyCheck at any point in their business process, including closed loans in the secondary market before final delivery.
Fannie Mae’s EarlyCheck service, initiated on September 25, 2010 as part of the GSE’s Loan Quality Initiative, offers multiple data checks that include: DU Compare (comparison of input loan application data with the data used in the most recent DU submission); social security number checks; occupancy checks; address checks; unit number checks; DTI checks; loan limit checks; checks for required delivery fields; and other basic eligibility and data integrity checks. EarlyCheck provides lenders with real-time, loan level results in formatted user-friendly reports that highlight many loan eligibility issues that need to be corrected. It also helps lenders identify recurring quality issues needing to be addressed that can affect loan eligibility.
Fannie Mae’s EarlyCheck service, available through the MORvision Premium Plug-in reduces delivery stops and corresponding financial and operational impacts. It can reduce loan funding and pooling delays caused by uncorrected loan delivery issues. It cuts down on manual resolutions of loan errors during the delivery process and after the loans are sold in the secondary market, saving lenders time and money.
“MORvision lenders will realize substantial time savings from the MORvision Premium Plug-In’s direct integration to Fannie Mae’s EarlyCheck service, more than if they tried to access the system on their own,” said Jason Cohen, senior director of product operations at ISGN. “The ability to access it from within MORvision makes it easy for lenders to quickly verify the loan and then act accordingly depending on the EarlyCheck results. EarlyCheck allows lenders to catch discrepancies before they submit a loan to Fannie Mae, so by integrating the service directly, we’re giving our customers the opportunity to speed up and streamline the loan delivery process as well as reduce errors.”
ABOUT THE AUTHOR: 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 tony@progressinlending.com.
A New Idea With Merit
By Tony Garritano
A few weeks ago I talked with Jeff Wirsing. He told me a bit about what he’s doing and I thought it would be a good story to tell. The time for new ideas is now and Jeff has a few that I think are worth noting. Three years in the making GreenBar America LLC, a startup company located in Englewood CO, is ready to fix the mortgage industry and help millions of Americans, according to Jeff. Their biggest regret is that they weren’t able to launch sooner and prevent the subprime meltdown. Here’s their approach:
After 8 and 10 years respectively as mortgage originators, it became clear to GreenBar Founders Jeff Wirsing and Bryon Swanson that the industry needed to focus on consumers and could use some help in figuring out how to arm originators with the means to really assist homeowners in making good mortgage decisions.
Company President Jeff Wirsing, says they are excited to work with the mortgage finance industry, and all mortgage originators, to give consumers similar tools to what Wall Street has to assess the risk/reward of a mortgage decision. He says, “The mortgage finance industry has a tremendous opportunity to put in place what has been a missing and critical component, the absence of which has placed Americans, and the entire country, in jeopardy. Wirsing also points out that, “It’s time for Americans to take personal responsibility and embrace thrift as a core American value for the purpose of being financially self-reliant and prepared for retirement.” And he has a plan to do just that.
Among the efforts to revamp the broken mortgage system Wirsing says “…there’s something that has been conspicuously ignored, which is arguably the most important link in the chain, namely the consumer. If consumers never defaulted on a mortgage none of the changes that are being made would be needed. That may sound simplistic”, says Wirsing, “but that doesn’t make it any less true.”
So how exactly does GreenBar America propose to make a mortgage borrower a “better” borrower? Beginning in October they introduced the “Powered by GreenBar” financial decision engine which is used by mortgage origination companies, banks, credit unions and individual originators, to guarantee that consumers can make the best possible mortgage decision and increase each borrowers ability to meet their long-term mortgage obligation.
Cindy Leonard, VP of Sales at Peoples Mortgage in Colorado Springs CO, was approached by GreenBar America in 2008. “We saw the value of the GreenBar Decision Engine to assist us in filling a need among our customers and quickly committed to being an early adopter. We’re anxious to work with Jeff and Bryon in rolling out the technology.”
At the height of the refi boom nearly 10 million Consumers a year were seeking the financial services of mortgage originators. The GreenBar technology takes advantage of these teaching moments to arm mortgage originators and create a nationwide corps of educators who will seamlessly transform the act of getting a mort-gage into a personal finance teaching and education event.
Wirsing explains that, “Everything about the mortgage industry, and more specifically how they go about approving borrowers, has been focused on the needs of Wall Street. It’s about creating a product and optimizing the risk/reward equation for investors in mortgage backed securities.”
But according to Wirsing, the entire mortgage industry would be better served if the mortgage strategy were designed to put the borrower in the safest possible position, which is what GreenBar-MORTGAGE does, by enabling the mortgage origination industry to laser focus on optimizing the risk/reward equation of consumers rather than Wall Street.
GreenBar-MORTGAGE is unique because it incorporates a personal finance model into the origination process which takes into account the strength of a borrowers personal financial foundation. Rather than looking at some-one’s credit history and how they did in the past, GreenBar looks at what the borrower is planning to do in the future to ensure their ability to meet their mortgage obligation. It makes it possible for consumers to actually measure and weigh the risks of various mortgage options. Wirsing explains, “GreenBar condenses all of the variables, and the confusing and complicated stuff, down to the most basic level needed to embrace the underlying financial needs of all borrowers.”
Interested Originators and mortgage companies can register to attend one of the weekly online webinar demonstrations of the GreenBar Decision Engine at www.greenbaramerica.com/training/webinars.
ABOUT THE AUTHOR: 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 tony@progressinlending.com.
The Power Of The Web
By Tony Garritano
I remember the days when we debated about client server technology vs. Web-based technology. The consensus was that mortgage lenders would never embrace the Web. Boy were those industry experts wrong. The Web is everywhere and lenders are increasingly turning to Web-based tools. Vendors are turning to the Web more and more, too. For example, CoreLogic has launched HomeStandingson RE/MAX Mainstreet, a members-only extranet website exclusive to the RE/MAX organization, including RE/MAX Affiliates, RE/MAX Employees and RE/MAX Approved Suppliers. The HomeStandings report provides property specific, easy-to-understand, professional-grade data and analytics that enable RE/MAX Agents to accurately assess the overall purchase quality of a home. HomeStandings combines property, neighborhood and market characteristics to provide a complete local understanding of a home’s value, marketability and rent potential and is available for virtually every property in the United States. Additional data taken into consideration include area pricing, surrounding market conditions, crime rates, schools, estimated market rent and investment opportunities.
“RE/MAX is pleased to work with CoreLogic to provide our agents with detailed property data that produces a significant competitive advantage,” said Mike Ryan, executive vice president, RE/MAX Global Communications and Branding. “Home buyers and sellers are always anxious to understand the true value of their home, and increasing numbers of investors will appreciate this information in analyzing the specifics of their real estate investments.”
RE/MAX Agents gain a greater competitive advantage with insight into the complex mix of property, neighborhood and market trends that drive property values, rental prices and market potential. Agents will provide further value to buyers, sellers and investors with essential data to help manage risk, decide whether to sell or rent properties, and perform due diligence prior to buying properties or distressed asset pools.
Use of the HomeStandings report also has a unique component that can help agents quickly identify potentially profitable foreclosed properties that are eligible for resale based on the grade generated by the report for each property. To confirm this capability of HomeStandings, CoreLogic reviewed more than 115,000 properties that were sold as foreclosures and then resold within six months. The study revealed that properties that earned an A grade with HomeStandings had a resale profit averaging $81,000 higher than those with D and F grades.
“HomeStandings is recognized as an important, relevant property research tool and has already delivered more than two million reports for three of the largest mortgage companies in the nation,” said H. Harper Thorpe, vice president of Real Estate Solutions at CoreLogic. “While limited information is available on consumer websites, stakeholders with real dollars on the line rely upon the increased comprehensive and accurate information brought together by CoreLogic.”
ABOUT THE AUTHOR: 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 tony@progressinlending.com.
What Can We Learn From Ellie Mae?
By Tony Garritano
What can we learn from Ellie Mae? First, that an origination technology player can go public. I think that’s a good thing for other origination vendors. It sets a good standard to follow. Some criticize Ellie Mae’s revenue, but times are trying. In the end, Ellie Mae’s total revenue for the third quarter of 2011 increased 23% to $14.7 million, compared to $11.9 million in the third quarter of 2010. Software Solutions revenue increased 30% to $11.8 million, compared to $9.1 million in the third quarter of 2010. Network revenue was $2.8 million, compared to $2.8 million in the third quarter of 2010. But Ellie Mae’s financial reporting tells me something else about the mortgage space that goes beyond just Ellie Mae. Here’s what I mean:
First, let’s get through the numbers. Ellie Mae reported that net income for the third quarter of 2011 was $1.0 million, or $0.05 per diluted share, compared to net income of $1.8 million, or $0.10 per diluted share, in the third quarter of 2010. Included in the results for the third quarter of 2011 was $0.4 million of one-time expenses related to the acquisition of Del Mar Datatrac. Included in net income and adjusted net income for the third quarter and nine months ended September 30, 2011, was a one-time tax benefit of $266,000 which resulted from a refund of prior years’ R&D tax credits.
On a non-GAAP basis, adjusted net income for the third quarter of 2011 was $2.0 million, or $0.09 per diluted share, compared to adjusted net income of $2.2 million, or $0.13 per diluted share, in the third quarter of 2010. Adjusted EBITDA for the third quarter of 2011 was $2.3 million compared to adjusted EBITDA of $2.5 million for the third quarter of 2010.
Total revenue for the nine months ended September 30, 2011 increased 20% to $36.7 million, compared to $30.6 million for the nine months ended September 30, 2010. Software Solutions revenue for the nine months ended September 30, 2011 increased 24% to $29.5 million, compared to $23.8 million for the nine months ended September 30, 2010. Network revenue for the nine months ended September 30, 2011 increased 8% to $7.3 million, compared to $6.8 million for the nine months ended September 30, 2010.
Net income for the nine months ended September 30, 2011 was $0.2 million, or $0.01 per diluted share, compared to net loss of $(1.1) million, or $(0.33) per diluted share (($0.07) per pro forma diluted share including the conversion of 11.8 million shares of convertible preferred stock in connection with the IPO), for the nine months ended September 30, 2010.
On a non-GAAP basis, adjusted net income for the nine months ended September 30, 2011 was $2.1 million, or $0.11 per diluted share, compared to adjusted net income of $0.7 million, or $0.04 per diluted share, for the nine months ended September 30, 2010. Adjusted EBITDA for the nine months ended September 30, 2011 was $3.2 million, compared to adjusted EBITDA of $1.9 million for the nine months ended September 30, 2010.
Ellie Mae says the key operating metrics as of and for the quarter ended September 30, 2011, excluding the Del Mar Datatrac acquisition:
>> The number of lender users actively using the company’s Encompass enterprise solution (“active lender users”) increased 10% year over year to 43,183;
>> Of all active lender users, 20,349 or 47%, were using the SaaS version of Encompass, an increase of 78% year over year;
>> Of all active SaaS lender users, 16,196, or 80%, subscribed to the company’s bundled success-based-pricing model (SBP), representing a 139% increase year over year;
>> 4,050 SaaS SBP users were sold, or booked, during the quarter, including 1,910 new users and 2,140 conversions of existing licensed Encompass users to the SBP model;
>> Lender Encompass revenue for the third quarter of 2011 increased 27% to $12.1 million as compared to the third quarter of 2010; and
>> Average revenue per active lender user in the third quarter of 2011 increased 12% over the comparable period in 2010 to $286.
Certainly reporting on their income and revenue is a story, but that’s not the whole story. For me, the fact that the company continues to report big gains in the area of Software as a Service and that the SaaS clients are taking advantage of bundled services is the real story. This means that lenders want flexibility. They want to be in charge of their own destiny. The more vendors realize and deliver of this trend, the better off their lender clients and the mortgage industry will be.
ABOUT THE AUTHOR: 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 tony@progressinlending.com.
A Gift For Servicers
By Tony Garritano
Servicers are plagued with, among other things, dealing with the new single point of contact rule. The good news for servicers, and mortgage professionals in general, is that vendors always catch on to provide solutions. In this case a lot of vendors have sought to solve this issue. For example, eMASON, Inc., developer of the Clarifirebusiness process automation software for the financial servicers industry, has unveiled the Clarifire Community. The new Clarifire feature, it says, enables the nation’s largest servicers to drive compliance with Department of the Treasury regulations, while delivering a solution to borrowers—and all others involved in mortgage servicing—that provides real-time access to borrower delinquency management processes. Clarifire Community is the portal through which borrowers, servicers, investors, title agents, realtors, regulators and other mortgage industry players can come together in one platform to synchronize activities relating to mortgage loans.
Recently the Treasury Department has required lenders and mortgage servicers to provide a “single point of contact” for borrowers who need help understanding the array of loss mitigation options available to them. Moreover, those servicers are now required to maintain detailed records (with audit trails) of their interactions with borrowers. eMASON’s Clarifire Community meets both directives in a single point of access in a secure private cloud environment.
With Clarifire Community, borrowers access their single point of contact with just one click. Banks and servicers often have over a dozen customer points of entry. With Clarifire Community, this is consolidated into one solution. A live chat feature, Clarifier Concierge, expedites the flow of information borrowers need. Clarifire automates the business processes that touch the mortgage loan, each to servicer specifications, while providing an action or contact trail that is both accountable and auditable. The various workflows and user interactions involved in delinquency management now happen in one place, in a secure, easy to use, intuitive platform.
In addition to its auditable single point of contact features, Clarifire Community generates documents, such as borrower final workout agreements, and delivers them through a secure Internet connection. Messages are delivered instantly to borrowers, telling them that the documents are ready in the communication method of their choice…email or text.
“Clarifire Community lets servicers deal accurately and efficiently with the volume of work they see today and are likely to continue to see in the future,” said Jane Mason, founder and CEO of eMASON. “The technology also gives borrowers a voice by letting them be informed participants in the process, which is what our regulators want to see. Technology is the heart of the solution.”
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 tony@progressinlending.com.
Let’s Lend A Hand
By Tony Garritano
My great friend Roger Gudobba lives to golf. In fact, most people in the mortgage space love to golf. I always say that once they add a miniature golf component to mortgage outings, I’m in, but until that happens my skills when it comes to real golfing are lacking. My friends will attest to this fact. So, why am I talking about golf today? I just got an announcement about a company that has combined golf with charity, and those of you that read this column regularly know, I love to talk about companies giving back. In this case The Carrington Charitable Foundation (CCF) announced today that its Inaugural Golf Classic was a tremendous success, raising $350,000 to benefit the Veterans Airlift Command. Funds raised through this event will support the administrative functions required to coordinate the efforts of the VAC volunteer pilot network, which includes arranging free air transportation for Veterans of Iraqi Freedom and Enduring Freedom (Afghanistan) for medical and other compassionate purposes.
The VAC aids wounded warriors dealing with devastating injuries and long-term hospitalization in facilities that may be hundreds of miles away from their families by providing free air transportation, donated by a national network of private aircraft owners, for the Veterans and their families.
“This event was truly a milestone for the VAC,” said Walt Fricke, Founder/AirBoss of the Veterans Airlift Command. “The partnership with the Carrington Charitable Foundation brought a whole new group of friends together, allowing them to see and hear first-hand how extraordinarily difficult routine air transportation can be for wounded warriors, and what a wonderful experience these veterans and their families have when they are instead transported in private aircraft. Without the financial support like that of the sponsors and attendees of this event, the Veterans Airlift Command could not exist.”
Carrington Holding Co., through its subsidiary Peregrine Jet, has been donating flights to the VAC for the past four years, contributing flight services, fuel, insurance and crew. Eager to further support the VAC in its mission to connect veterans and their families, the Carrington Charitable Foundation chose to hold its Inaugural Golf Classic to raise funds for the organization. Over 97% of total in-kind donations and funds raised by the VAC throughout the year go directly to the cause – only 2.66% are used for administrative purposes.
“This event was a life changing experience for our employees and guests who had the opportunity to hear the stories of our injured veterans and interact with them throughout the weekend,” said Bruce Rose, CEO and Founder of Carrington Holding Company. “We believe very strongly in the Veterans Airlift Command and the work they do to unite troops with their families, and are pleased that our golf tournament could raise awareness for the VAC mission and provide funds to further the crucial work they are doing for our wounded warriors.”
Over 100 companies and individuals participated as event sponsors.
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 tony@progressinlending.com.
A New Title And Data Quality Firm Forms
By Tony Garritano
I sound like a broken record when I say now is the time to innovate, but it really is. Now is the time to take a new approach to an old method or strategy. To this end PROGRESS in Lending has learned of a creative acquisition that pledges to revamp the title sector. Charles Sanders, the founder of Urban Lending Solutions, a provider of residential and commercial mortgage products and services, has teamed up with settlement services industry veteran Michael Forgas, formerly CEO of National Real Estate Information Services (NREIS), to acquire RealtyData, a provider of title search productivity solutions. Sanders will serve as President and will hold a majority interest in the company and Forgas will serve as chief executive officer. Here’s the new company’s value proposition:
“The technology that RealtyData has developed is very exciting and will change the way the title industry operates,” Sanders said. “That made the company a good investment at this time. I’ve known Mike for many years and look forward to working with him.”
RealtyData technology allows title companies to automate title searches in 900 counties across the nation. In addition, a quality control engine can perform automated quality control on the resulting title commitments, reducing title agent expenses significantly.
“The title industry has been slow to adapt to technological change, but economic pressure is forcing title agents to seek out tools that will allow them to provide their services more efficiently,” Forgas said. “Our technology allows title agents to not only be more efficient but also improve quality and at favorable prices. We must not forget about quality, especially in this time of significantly increased regulatory oversight.”
Sanders said he and Forgas will first focus on penetrating deeper into RealtyData’s existing client base, moving good customers beyond simple searches and into the company’s quality control solution. For more information about the company, visit the website at http://www.realtydata.com/.
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 tony@progressinlending.com.
A New Twist On Quality Control
By Tony Garritano
With the emphasis on loan quality going around, lenders need help. That’s where vendors come in. A good friend to PROGRESS, Brian Fitzpatrick, is continually innovating in this area. For example, PROGRESS in Lending has learned that Aklero Risk Analytics, a provider of automated data and document validity assurance for the mortgage industry, is rolling out PreQx designed to perform an automated quality control check once the file has reached a clear to close status. During this final stage, PreQx performs an automated quality control audit using Aklero’s powerful document and data validity platform, Q-Close. The technology automates the vast majority of the manual audit tasks contained in a pre-closing checklist. Moreover, it automates the review and scrutinizes data and original documents for issues that include the borrower’s income, property valuation and the latest credit report.
“Many lenders recognize that repurchase risk is prevalent in today’s market and that, early in the origination process and prior to the closing, lenders require more certainty that their loans meet the investor’s eligibility guidelines,” said Brian K. Fitzpatrick, Chief Executive Officer at Aklero.
At the same time, the cost to properly scrutinize and audit loans is rising; lenders need a cost effective solution that enables them to review a greater number of loans prior to closing while providing adequate time to rectify any deficiencies.
“Traditional quality control solutions do not adequately address the timeliness and cost efficiency of pre-closing audits. In a pre-closing audit, time is of the essence and the completeness of the audit is paramount,” said Fitzpatrick “PreQx touts automated, document based pre-closing audit solution that solves the time and cost issue while providing our clients with the most effective quality control safety net in the mortgage industry.”
PreQx can be combined with Aklero’s audit services or lenders can use their internal audit teams to review results and complete the audit. In both cases, PreQx removes the majority of manual audit tasks associated with a pre-closing audit and focuses the auditor’s time and attention on the total risk picture of the loan. This enables users to have a more granular review while significantly increasing the effectiveness and productivity of audit resources. Additionally, PreQx focuses on data accuracy by evaluating the data in the documents to the data in the Loan Origination System.
To identify issues, Aklero will run the configurable PreQx checklist and provide the results within 24 hours, ensuring that the lender has a complete picture of the borrower’s risk profile before credit is extended—and that’s something no one else in the industry can do. PreQx takes the expense of QC and turns it into a real time risk management resource that has a demonstrable return on investment.
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 tony@progressinlending.com.
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Putting The Spotlight On Servicing E-Collaboration
By Tony Garritano
I’m a true believer in electronic collaboration. It just makes sense. Why pick up the phone to order title, credit, the appraisal, etc., when you can put in an electronic order for all those services and more on a centralized system? I think this makes a lot of sense to most people in the mortgage industry, but most don’t think of it in terms of servicing, but rather in terms of origination. Not so, this approach benefits servicers, too, and vendors realize that. For example, PROGRESS in Lending has learned that DRI Management Systems, Inc. has launched the new DRI Office Service Ordering Platform, whereby servicers can automatically execute their orders for services, seamlessly manage the incoming information from providers, and tap a growing list of premiere, in-network vendors. Here’s the scoop:
Servicers, already hard-pressed to keep up with the volume of problem loans needing attention, will find the Service Ordering Platform in DRI Office of great assistance, says DRI Chief Operating Officer Fred Melgaard. “We built the system to handle as many of the vendor ordering and management tasks as possible,” he explains. “The ordering process eliminates errors and non-reimbursable duplications, and the onboard rules engine makes ordering and acting on the results more automated than ever before. Vendor management tools are built in to maximize those relationships, and the integrated content management system stores and keeps track of things so nothing gets misplaced,” he says.
The system keeps things as paperless as possible, eliminating the clutter and confusion in servicing operations of all sizes, Melgaard says, and the system is designed to deal with information flowing back from vendors, regardless of format. “By having everything integrated, the workflow becomes more efficient and productive, with impressive cost savings for users,” he says. Melgaard notes that a large national servicer had been spending up to a million dollars a month on duplicated orders alone and urged DRI to prioritize a solution to this problem.
Steven Horne, CEO of Wingspan Portfolio Advisors, a Dallas area-based special servicer and long time DRI client, thinks that the cost savings offered by the Service Ordering Platform represent more than a simple benefit of using the technology. “The efficiencies and cost savings offered by the Service Ordering Platform will be very significant for our company,” he says. “A primary first lien servicer might find that with their volume, the savings would pay for most if not all of their DRI Office technology costs.”
DRI’s Melgaard says that the company is adding vendors to its network of participating service providers. Early integrations with the Service Ordering Platform include Epiq Systems’ AACER® (bankruptcy creditor solutions), CoreLogic (automated valuations) and CoreLogic Credco (verifications services and credit reports), Equi-Trax (property valuations), NetDirector (connecting servicer’s systems to the platforms used by their law firms), SWBC (insurance coverage), and others. “We’re looking for the best vendors in the industry,” he notes. “The system benefits them too, by reducing their costs associated with order management and delivery. All parties can focus on what they do best while we remove transaction friction and keep the default management process running smoothly.”
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 tony@progressinlending.com.
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Going Turnkey
By Tony Garritano
Right now everyone is talking about efficiency and ease of use. Some times that means switching systems. As a result, you’re seeing vendors embrace concepts like SaaS and cloud computing to make it easier for lenders to implement new technology. For example, PROGRESS in Lending has learned that Mortgage Cadence, LLC has introduced Mortgage Cadence Symphony Reverse, a reverse mortgage software solution, allowing lenders to get up-and-running quickly utilizing standard, pre-configured workflow. Products like this not only allow faster implementation, but also allow forward lenders to dabble in the reverse world. Here’s the scoop:
In today’s environment, reverse lenders are facing the inevitability of increased Federal and State requirements surrounding reverse mortgages, just like in the forward mortgage world. In addition, as the country continues to struggle with high unemployment rates, Americans are banking on their home values to rebound and become a possible means to retire. As a result, the ability to quickly implement upcoming changes quickly and efficiently is a growing concern for reverse lenders. Symphony Reverse was designed to fill that technology void and address those concerns by enabling lenders to eliminate manual processes and increase their productivity and throughput. In addition, large players exiting the space have left an opening for lenders to gain market share. By leveraging Mortgage Cadence’s core technology, Symphony Reverse allows those lenders to quickly enhance their core platform while taking advantage of lower implementation timeframes and costs.
“With the higher HECM Loan Limits set to expire on December 31st of 2011, there will be a revival of proprietary products. Fortunately, Symphony Reverse is flexible enough to support such products quickly,” stated Rob Jannotte, executive vice president of product development for Mortgage Cadence. “Coupled with the fact that many large reverse lenders have left the space, an opening has been created for mid-market reverse lenders and outsiders to get in the game and look to reverse mortgages as a way to expand their product offering and increase their profits.”
The Mortgage Cadence Symphony Reverse product will also offer integrated documents through Finale Document Services. This document preparation and delivery solution offers document management and risk mitigation services.
We at PROGRESS in Lending will keep you informed on the success of this product and any news of other vendors making similar moves.
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 tony@progressinlending.com.
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We’re Making Headlines, Again
By Tony Garritano
We, in the mortgage industry, have seen a lot. It has been a bumpy road for this industry and there are more bumps ahead. How do we get through the travails ahead? By innovation and by daring to speak out and support new ideas and concepts that can change the business of lending for the better. That’s why PROGRESS in Lending was formed. This association was built on the notion that visionaries and thought leaders need a platform to express their creativity and originality. It gives me great pleasure to say that it has worked because you have heard the call and amplified it. Many have gathered to sponsor, read and join PROGRESS in Lending Association. Now we’re taking it even further with two new initiatives. Here’s what I mean:
By now you may have realized the first change. Throw out that website password because you don’t need it to access any of our content anymore! Some publishing companies in our space and in other spaces have decided to lock down their content to get people to pay a subscription fee or to drive new readership. When it comes to PROGRESS in Lending, all of our content has and will remain free. Furthermore, we launched our monthly online publication Tomorrow’s Mortgage Executive magazine just one year ago and in under a year over 11,000 executives now read our magazine each month. We launched our daily e-letter in July of last year with 1,500 subscribers. Today we have over 8,000 subscribers that get our e-letter each and every day. That’s 375% growth in a little over a year. This had made us realize that as more information is shared online, you need to manage more passwords and you hate managing passwords. We all hate managing passwords. So, it gives me great pleasure to say here and now, “Throw out that password because you won’t need it here anymore.”
PROGRESS in Lending hosted ENGAGE 2011 a little over a week ago. Over 120 executives gathered for that event. If you were not there, we made a significant announcement. In the same way that we realize that the future is not about forcing you to remember another website password, we realize that the future is all about expanding our platform in new and creative ways. To this end, those that rely on PROGRESS in Lending will now also have a presence in the mobile world. We have used this new and emerging technology to expand the reach of our association by developing the free PROGRESS in Lending app that you can download today on iTunes.
The PROGRESS in Lending app is a fast and convenient way to view the latest lending news, analysis, thought leadership and opinions. Through this app, industry participants share their ideas about how to move the business of lending forward through a variety of different media. You will find news stories, columns, white papers, cutting-edge video and tweets from several different sources. It is a cornucopia of forward-thinking content of every shape and size all at your fingertips in one beautifully designed environment. Not only can you catch up on the latest and greatest going on in the area of lending, but all content can be shared with your friends and colleagues via e-mail, LinkedIn, Twitter and Facebook. This connectivity will allow you to easily apply the ideas garnered from these sources to grow your business.
This app is designed to make everything that you consume on the Web like PROGRESS in Lending’s daily e-letter, our monthly video newscast, our Twitter account and our monthly magazine, Tomorrow’s Mortgage Executive, better and easier to consume, share and use. Beyond just displaying content from PROGRESS in Lending, the app brings together trusted information from a variety of sources in this one app. For example, the app follows several industry Twitter accounts, presents research from other trusted companies active in the lending space, assembles interesting case studies and white papers, all in one app dedicated to giving industry participants a broader forum. Remember, progress is defined as “a forward or onward movement” and “gradual betterment.” No industry, lending or otherwise, can exist and/or thrive without continued progress. Simply put, this is the app for lending thought leaders and visionaries. Join the conversation and download the PROGRESS in Lending app to get a better understanding of what is needed to move the lending industry forward. Download the app HERE.
After all this talk, I think it is important for me to say, for the umpteenth time, thank you.
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 tony@progressinlending.com.
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You See What I Mean
By Tony Garritano
Remember the industry scramble to be RESPA compliant? Well, the new RESPA Rule has worked. It did its job. PROGRESS in Lending Association has learned that Ernst Publishing Company, an authority on land recording requirements to the mortgage marketplace, reports that a survey it conducted earlier this month showed that 57% of respondents think that the title and lending industry communicate “well” or “very well” in their efforts to comply with The Real Estate Settlement Procedures Act (RESPA). In addition, 35% describe the communication between them as adequate. Here are the other survey findings:
“The ability for title agents and lenders to communicate is critical to compliance with RESPA, so that statistic is welcome news for the mortgage industry,” said Gregory E. Teal, president and chief executive officer of Ernst. “Moreover, it suggests that they are working to ensure that regulations are closely followed and complied with.” The Ernst survey was e-mailed to more than 8,600 clients of the firm, of which almost 6% responded.
The aim of the study was to provide insight on how the industry was faring under several new regulations. “According to the survey results, many financial organizations have increased their ability to handle the new rules. For instance, 52% of respondents reported they were more prepared for the CFPB than they were six months ago,” said Teal.
The survey also found that 65% of respondents reported they did not believe there is still a disconnect between RESPA requirements for the GFE and the closing table; 82% of respondents thought that lenders are able to meet RESPA requirements and provide clear instructions for closing; 84% reported that costs decreased or stayed the same when they implemented an automatic tool to assist with the GFE-HUD1 process; and 59% believe the combined GFE/TILA will make closing loans easier for them.
So, while RESPA and other recent regulatory changes may seem like a burden, when the industry responds to these changes by further automating, everyone wins.
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 tony@progressinlending.com.
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A Dynamic Approach To Compliance
By Tony Garritano
Everyone is worried about compliance these days. But of course, I’m going to tell you that technology can help, and it is a true statement. For example, Motivity Solutions, creators of the business management platform called Movation, has formulated a new approach to tackling compliance. The pace of new regulation has been feverish to the point when it is almost unbearable for mortgage lenders. In response, Motivity Solutions has adopted a performance-driven approach that helps lenders remain ahead of any new regulation. Here’s the scoop:
Lenders that develop performance driven operations in an uncertain lending environment can realize the advantages that streamlined mortgage operations can deliver in terms of measurable business benefits and the impact it can have on their overall go forward strategies. Specifically, business intelligence (BI) technology can help lenders handle a host of compliance issues all within one system.
As lenders look to cut costs and be more efficient, BI technology delivered by Motivity Solutions through its Movation platform can ensure that individual activities are automatically assigned to employees based on their role and your company processes. Every employee has a workspace that displays the task they are working on and which tasks need to be completed – automatically and in real-time.
Managers can view the workload of their entire team and can easily assign work and load balance as necessary. Features like those described are important because lenders need to know where they stand relative to new regulation for a variety of reasons. For example, earlier in the year the mortgage industry was hit with new loan officer rules that stipulate that loan officer compensation cannot be based on a mortgage transaction’s terms. In order to avoid a stiff penalty and the label of being predatory, lenders can use Movation to track all elements of the loan and LO compensation.
Also this year the mortgage industry saw changes made to the good-faith estimate (GFE). Changes on the new GFE deal with binding fees, changes in how the origination fees/discount points are determined, how these are disclosed and what can and cannot be changed. Lenders will find it difficult to comply if they do not have a complete understanding of every element of the loan. Movation provides the ability to “manage by exception” and drill down to the underlying loan-level detail from multiple data sources.
However, if the technology is not accessible, it will not get usage. For this very reason Movation makes BI extremely user friendly and visual. To this end, Movation provides scorecards to enable the lender to be even more compliant and performance driven in a very complex mortgage environment. Movation Scorecards incorporate a variety of Key Performance Indicators (KPIs) which are defined metrics used to align small-scale operational activities with large-scale company goals. These KPIs are combined into a Scorecard which constantly monitors performance allowing you to compare and analyze goals versus actual results. Movation takes this a step further by proactively alerting key users when a pre-defined event occurs or when a threshold is reached.
But scorecards are just one way to make BI actionable. The technology also incorporates dashboards. Through the dashboards users graphically see high-level summary data and have the ability to drill down to refined levels of data to instantly identify and solve the root cause of a problem. Movation’s Dashboards are role-based and customizable to ensure employees only have access to relevant, job-specific data.
Together this technology can make it possible for lenders to get a handle on their operation and not only react to new rules and regulations, but to also get ahead of any new regulations that may come down in the future.
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 tony@progressinlending.com.
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Let’s Take on The CFPB
By Tony Garritano
The “Know Before You Owe” initiative at the Consumer Finance Protection Bureau began in May of this year when the new watchdog agency asked the public to compare two different draft designs of a new streamlined mortgage disclosure. In the months that followed, the CFPB used that input to help it improve initial draft designs. Altogether, the CFPB received more than 22,000 comments on how to improve mortgage disclosures. When revised disclosures are released it will represent yet one more hurdle for lenders already struggling to keep up with compliance requirements that continue to become more complex. In response to an ever-changing mortgage market, PROGRESS in Lending has learned that document compliance provider MRG has embraced a data-centric approach to document creation that will help lenders comply with this and any other document compliance issue that may arise in the future. Here’s the scoop:
Lending has significantly changed over the past couple of years. The pressure on today’s lenders is enormous. This lending environment creates dramatic loan document challenges and risks for lenders. Changing rules, regulations, and the ramifications of non-compliance, including fees, penalties and the possibility of buy-backs make the origination process an escalating challenge. Traditional “doc prep” is no longer the answer when lenders are trying to handle these complex and ever changing requirements.
Most lenders, quite frankly, don’t have the time or resources to staff a compliance department that can constantly monitor and accurately interpret the vast number of regulatory changes that are being implemented on a federal, state and local level. Unfortunately, the same is true for many traditional “doc prep” providers. Those providers that rely on an antiquated forms library to deliver static documents, with limited legal compliance analysts, are no longer a prudent choice. Relying on outdated, traditional “doc prep” is a risk that lenders simply cannot afford to take in an increasingly “compliance-centric” environment.
To this end, MRG Document Technologies (MRG) delivers complete, real time mortgage compliance directly into the document process – no static document templates for the lender to choose and manage internally. MRG attorneys constantly monitor the ever changing regulatory landscape and provide dynamic document compliance. MRG does not license any third party content or calculations, which allows MRG to fully rep, warrant, guaranty, and defend, its product. The product is backed by an E/O policy from full disclosure through closing packages, including calculations. No more need for an internal compliance staff to manually manage package content or selection, for fear of inaccuracy.
All document and calculation updates are compliantly and automatically delivered in real time. Together with the lender’s chosen LOS for a seamless, “lights out” approach, disclosure packages are drawn within 30 seconds and closing packages in just a couple minutes. Throughout the package request process, loans are checked with industry leading automated loan compliance tests, thus eliminating the need for additional 3rd party vendor software. In addition, MRG attorneys are available for services regarding general compliance advice, which is built into the overall compliant document solution.
These comprehensive document compliance solutions provide lenders with the ability to enhance their compliance initiatives. It also gives lenders the tools they need to increase loan production, speed up turnaround times, while significantly mitigating risk. By providing a staff of mortgage banking attorneys to lenders, MRG also delivers the support and regulatory monitoring required to ensure loans are meeting the latest regulatory demands.
Lending has changed forever. So too must the lenders document preparation solution. No longer can lenders rely on antiquated form libraries and technology from traditional “doc prep” providers that have limited legal expertise and experience. The risk and exposure is far too great.
In today’s regulatory environment, lenders must demand more from their “doc prep” provider – compliance and dynamic content technology.
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 tony@progressinlending.com.
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Big Tech Acquisition News
By Tony Garritano
In the past year we have seen some big technology acquisitions. Well, that trend continues today. One area of interest when it comes to recent acquisitions seems to be pricing and decisioning technology. We have seen both Ellie Mae and Calyx Software acquire PPEs. Long-time decisioning vendor Commerce Velocity also got acquired recently. Why the interest in this technology? As the mortgage industry looks to produce better quality loans, pricing and decisioning technology is going to be critical. In a bit of a twist, PROGRESS in Lending has learned thast this time it’s the pricing and decisioning vendor that is doing the acquiring. We have learned that Optimal Blue has completed a major acquisition. Here’s the scoop:
Optimal Blue, a Web-based platform that couples pricing and secondary marketing automation with content management for the mortgage industry, has acquired Sollen Technologies, LLC. The sale price and terms of the agreement were not disclosed.
This transaction gives Optimal Blue a more commanding position in the market, adding to its mortgage banking clients, comprised of independent mortgage banks, credit unions and community banks. The purchase of Sollen’s assets includes a business process patent. Optimal Blue will begin executing on the integration of the two companies’ products, customers and employees immediately, ensuring a smooth transition that maximizes the value inherent in the acquisition.
According to Larry Huff, co-CEO of Optimal Blue, “Optimal Blue has always been committed to growth, both organically and through acquisitions. Marking our third acquisition in the past few years, we believe the addition of Sollens’ customers, employees and technology enable us to gain market share immediately, while meeting a broader set of customer needs and expanding our opportunities for more growth in the future.”
Founded in 1999, Sollen Technologies was the first Web-based product eligibility and secondary marketing automation platform introduced into the mortgage market. Sollen has advanced the industry through its innovation for more than a decade, resulting in loyal customers and an entrepreneurial spirit that has paved the way for consistent enhancements in PPE technology. With a similar philosophy to Optimal Blue, the company has focused on increasing profits and efficiencies for mortgage lenders, through real-time pricing workflow automation.
“Given the alignment of our visions, technologies, and overall strategies, the combination of our two companies will advance our ambition of continued product innovation,” said Michel Van Hee, Sollen Technologies Chief Executive Officer. “With a similar ancestry and a devout customer-centric philosophy, we look forward to bringing added value to the mortgage banking community.”
Optimal Blue retained Milestone Advisors as its financial advisor and Ferguson Law Group as its legal advisor. Sollen Technologies retained Krall & Co. as its financial advisor and Walker Law Firm as its legal advisor.
Larry Huff will be on hand speaking at PROGRESS in Lending’s ENGAGHE 2011 Event. To hear what further details he may share about this news and his vision for the future of mortgage lending, we encourage you to RSVP to attend HERE.
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 tony@progressinlending.com.
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I Must Be A Lucky Guy
By Tony Garritano
Earlier this week I got a scoop on an advance in the e-mortgage space. So many smart people have been evangelizing on behalf of e-mortgages for so many years. So, when I just got another scoop on e-mortgage advances a smile came over me. It must be my week. I feel really positive that now lenders can start their e-mortgage journey. What makes this scoop even more compelling is that it also makes the burden of compliance in an over-regulated world easy. The technology is there. Here’s the scoop:
Earlier in the week I learned that eLynx partnered with e-signing and e-vaulting vendor eSignSystems, well now I have learned that eLynx has partnered with Compliance Systems, Inc. (CSi), to integrate CSi’s IntelleDoc Solutions, an intelligence-driven solution for compliance documentation, into its electronic closing network (eCN). Two hallmarks of the CSi IntelleDoc Solutions include its data-driven approach combined with a single data schema that supports all traditional lines of business including mortgage, consumer and commercial lending, allowing it to select and assemble the correct documents to perfect the transaction in any jurisdiction. The integration of IntelleDoc services with eCN provides eLynx customers with alternative options for document creation supporting the loan life-cycle.
“Lenders understand the need to be fully compliant, but they are also seeking flexible solutions that will facilitate their continued growth,” said Sharon Matthews, president and CEO of eLynx. “We are proud to bring CSi’s products to eLynx’s customers in a way that preserves their end-to-end electronic capabilities while supporting their existing workflows.”
“In today’s financial environment, lenders want more intelligence built into the software they use and this partnership delivers it,” said Dennis Adama, president of CSi.
“eLynx’s eCN is the network more mortgage lenders are relying on to close loans,“ added Roger Gudobba, chief strategy officer of CSi. “IntelleDocs Solutions provide lenders data-driven documents to be processed by eLynx’s eCN solution and allows them to close each loan in full compliance with the latest regulations and investor requirements.”
eLynx’s eCN solution has become an industry-recognized electronic closing platform, with more than 1 million loans being processed through the system annually and approximately 100,000 settlement agents registered in eLynx’s nationwide settlement agent database to close loans. eCN significantly eases reconciliation between the data and documents used in the loan closing process by providing secure connections between mortgage professionals and settlement systems.
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 tony@progressinlending.com.
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At Last
By Tony Garritano
Maybe I’m alone, but I love the reality show singing contests. I love American Idol, The Voice and now X-Factor. I just love singing actually. Last week one X-Factor contestant came up and sang Etta James’ famous song dubbed “At Last.” I thought it was going to be a train-wreck, but it was a really great rendition. I know you’re wondering where I’m going with this. Myself and others have been talking about the e-mortgage for a while. Along these lines, the scoop I just got made me want to sing that Etta James song, only it might go something like, “At last lenders have some more e-mortgage choices that have come along.” Here’s the news:
PROGRESS in Lending has learned that eLynx has entered into a partnership with eSignSystems to make the firm’s leading SmartSAFE e-vaulting software available as part of eLynx’s electronic closing network (eCN). The SmartSAFE Bundle offers a complete solution to store, access, and manage legally binding electronic mortgages. The addition of e-vault services to eCN, gives eLynx customers electronic options for all stages in the life-cycle of a loan.
Why is this news so significant to me? Because I remember a day when lenders only had one vendor to go to when they wanted to even consider doing a full or hybrid e-mortgage. Today there are many choices. And when industry leaders like eLynx start to offer this alternative, lenders will see the value.
“Lenders understand the value of an end-to-end electronic mortgage workflow but want to avoid the high risk of disrupting their established systems and processes,” said Sharon Matthews, president and CEO of eLynx. “eLynx’s customers can now easily and seamlessly extend their existing loan fulfillment to include e-vaulting services.”
“E-vault services allow lenders to improve efficiency and transparency of mortgages by reducing funding times and improving loan quality through an electronic workflow,” said Kelly Purcell, executive vice president of marketing and sales for Wave’s eSignSystems division. “SmartSAFE builds on the strong compliance foundation already built into eCN with additional audit logs and controls required for e-mortgage lending. We’re proud to be part of the eCN solution.”
eLynx’s eCN solution has become an industry-recognized electronic closing platform, with more than 1 million loans being processed annually and approximately 100,000 settlement agents registered in eLynx’s nationwide settlement agent database to close loans. eCN significantly eases reconciliation between the data and documents used in the loan closing process by providing secure connections between mortgage professionals and settlement systems.
The bottom line is that as e-mortgage technology becomes more accessible and easy to implement, lenders looking to increase efficiency and remain compliant will have little option but to go this route.
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 tony@progressinlending.com.
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A Bright Idea For Servicers
By Tony Garritano
Yesterday I talked about how e-collaboration can benefit servicers. Today, I want to stay on the servicing topic because it’s a huge issue for our industry. Servicers need help. So, when I hear about new innovation happening in the area of servicing, I’m going to bring you that news. PROGRESS in Lending has learned that Wingspan Portfolio Advisors, a special servicer based in the Dallas area, is preparing to launch a new affiliate company, Wingspan Information Technology, LLC, aimed at helping mortgage servicers adapt to new requirements more easily. Here’s the scoop:
The company makes available the same capabilities that have enabled Wingspan to provide single point of contact (SPOC) access for borrowers since its inception, and brings benefits of its centralized database approach that would otherwise require significant costs for servicers and lenders to achieve. E.J. Kite, Wingspan’s senior vice president of information management, describes the technology as a breakthrough for mid-market servicers and portfolio lenders who are deeply concerned about complying with new regulations. The old way of organizing information among different internal systems and trying to make them work together often creates more problems than it solves, he feels. Wingspan Information Technologies is offering a “single source of truth” approach to information, providing much greater efficiency and real-time transparency for investors and other stakeholders.
“When everything is in one place, it is far easier to access data and manage it,” Kite explains. “When companies use a centralized approach, everyone stays on the same page, and that includes the borrower interface teams, making single point of contact an integral part of the servicing process.”
Kite has more than 26 years of experience in mortgage technology, including over two decades at Freddie Mac. Prior to Wingspan, he spent three years at Fannie Mae as Management Information Systems director, working with Dallas area-based technology consultants Miller & Associates, a company specializing in business intelligence and custom software development, to build out the credit performance management reporting infrastructure. A longtime advocate of centralized database structures for mortgage servicing, Kite recommended the strategy to Wingspan founder and CEO Steven Horne while the company was being formed. Using Kite’s “results-oriented approach,” Wingspan created an infrastructure to manage large amounts of complex mortgage information, delivered in a highly useful form for finely directed applications. The approach integrates teams and aligns information and users with great precision.
“Since day one,” Horne says, “Wingspan Portfolio Advisors has been a single point of contact company, creating very effective relationships with borrowers that have led to our outstanding track record of success.” Kite and Horne are working with Miller & Associates to bring Wingspan Information Technology’s benefits to servicers and lenders with very reasonable costs and implementation timeframes. The technology is highly customizable and leverages web portals for unprecedented access to information by those who need it. “Smaller servicers, including regional banks and credit unions, can achieve a level of servicing sophistication they have not seen before with Wingspan Information Technology’s offering,” says Horne.
“We are also working with Dedo Interactive, Inc., a Miller & Associates spin-off which specializes in touch/gesture/mobile-based technologies, on a GPS-enabled smart phone application that will prevent or minimize many types of fraud from third parties,” Kite notes. “It authenticates field services providers at property sites, receives their updates and reports instantaneously, and adds transparency to all kinds of property management activities. It even handles location-verified photos from mobile devices to prove that the grass is cut and the hedges are trimmed to specifications.”
Wingspan Information Technology expects to accept its first clients during the fourth quarter of 2011, with implementations completed in the first quarter of 2012. “We’re excited to be making these technology advancements available to the mortgage community and expect Wingspan Information Technology to provide meaningful assistance to the overall servicing effort,” Kite says. “Wingspan Portfolio Advisors has had great results with the platform, and we look forward to sharing what we have learned.”
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 tony@progressinlending.com.
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Putting The Spotlight On Servicing E-Collaboration
By Tony Garritano
I’m a true believer in electronic collaboration. It just makes sense. Why pick up the phone to order title, credit, the appraisal, etc., when you can put in an electronic order for all those services and more on a centralized system? I think this makes a lot of sense to most people in the mortgage industry, but most don’t think of it in terms of servicing, but rather in terms of origination. Not so, this approach benefits servicers, too, and vendors realize that. For example, PROGRESS in Lending has learned that DRI Management Systems, Inc. has launched the new DRI Office Service Ordering Platform, whereby servicers can automatically execute their orders for services, seamlessly manage the incoming information from providers, and tap a growing list of premiere, in-network vendors. Here’s the scoop:
Servicers, already hard-pressed to keep up with the volume of problem loans needing attention, will find the Service Ordering Platform in DRI Office of great assistance, says DRI Chief Operating Officer Fred Melgaard. “We built the system to handle as many of the vendor ordering and management tasks as possible,” he explains. “The ordering process eliminates errors and non-reimbursable duplications, and the onboard rules engine makes ordering and acting on the results more automated than ever before. Vendor management tools are built in to maximize those relationships, and the integrated content management system stores and keeps track of things so nothing gets misplaced,” he says.
The system keeps things as paperless as possible, eliminating the clutter and confusion in servicing operations of all sizes, Melgaard says, and the system is designed to deal with information flowing back from vendors, regardless of format. “By having everything integrated, the workflow becomes more efficient and productive, with impressive cost savings for users,” he says. Melgaard notes that a large national servicer had been spending up to a million dollars a month on duplicated orders alone and urged DRI to prioritize a solution to this problem.
Steven Horne, CEO of Wingspan Portfolio Advisors, a Dallas area-based special servicer and long time DRI client, thinks that the cost savings offered by the Service Ordering Platform represent more than a simple benefit of using the technology. “The efficiencies and cost savings offered by the Service Ordering Platform will be very significant for our company,” he says. “A primary first lien servicer might find that with their volume, the savings would pay for most if not all of their DRI Office technology costs.”
DRI’s Melgaard says that the company is adding vendors to its network of participating service providers. Early integrations with the Service Ordering Platform include Epiq Systems’ AACER® (bankruptcy creditor solutions), CoreLogic (automated valuations) and CoreLogic Credco (verifications services and credit reports), Equi-Trax (property valuations), NetDirector (connecting servicer’s systems to the platforms used by their law firms), SWBC (insurance coverage), and others. “We’re looking for the best vendors in the industry,” he notes. “The system benefits them too, by reducing their costs associated with order management and delivery. All parties can focus on what they do best while we remove transaction friction and keep the default management process running smoothly.”
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 tony@progressinlending.com.
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Going Turnkey
By Tony Garritano
Right now everyone is talking about efficiency and ease of use. Some times that means switching systems. As a result, you’re seeing vendors embrace concepts like SaaS and cloud computing to make it easier for lenders to implement new technology. For example, PROGRESS in Lending has learned that Mortgage Cadence, LLC has introduced Mortgage Cadence Symphony Reverse, a reverse mortgage software solution, allowing lenders to get up-and-running quickly utilizing standard, pre-configured workflow. Products like this not only allow faster implementation, but also allow forward lenders to dabble in the reverse world. Here’s the scoop:
In today’s environment, reverse lenders are facing the inevitability of increased Federal and State requirements surrounding reverse mortgages, just like in the forward mortgage world. In addition, as the country continues to struggle with high unemployment rates, Americans are banking on their home values to rebound and become a possible means to retire. As a result, the ability to quickly implement upcoming changes quickly and efficiently is a growing concern for reverse lenders. Symphony Reverse was designed to fill that technology void and address those concerns by enabling lenders to eliminate manual processes and increase their productivity and throughput. In addition, large players exiting the space have left an opening for lenders to gain market share. By leveraging Mortgage Cadence’s core technology, Symphony Reverse allows those lenders to quickly enhance their core platform while taking advantage of lower implementation timeframes and costs.
“With the higher HECM Loan Limits set to expire on December 31st of 2011, there will be a revival of proprietary products. Fortunately, Symphony Reverse is flexible enough to support such products quickly,” stated Rob Jannotte, executive vice president of product development for Mortgage Cadence. “Coupled with the fact that many large reverse lenders have left the space, an opening has been created for mid-market reverse lenders and outsiders to get in the game and look to reverse mortgages as a way to expand their product offering and increase their profits.”
The Mortgage Cadence Symphony Reverse product will also offer integrated documents through Finale Document Services. This document preparation and delivery solution offers document management and risk mitigation services.
We at PROGRESS in Lending will keep you informed on the success of this product and any news of other vendors making similar moves.
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 tony@progressinlending.com.
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We’re Making Headlines, Again
By Tony Garritano
We, in the mortgage industry, have seen a lot. It has been a bumpy road for this industry and there are more bumps ahead. How do we get through the travails ahead? By innovation and by daring to speak out and support new ideas and concepts that can change the business of lending for the better. That’s why PROGRESS in Lending was formed. This association was built on the notion that visionaries and thought leaders need a platform to express their creativity and originality. It gives me great pleasure to say that it has worked because you have heard the call and amplified it. Many have gathered to sponsor, read and join PROGRESS in Lending Association. Now we’re taking it even further with two new initiatives. Here’s what I mean:
By now you may have realized the first change. Throw out that website password because you don’t need it to access any of our content anymore! Some publishing companies in our space and in other spaces have decided to lock down their content to get people to pay a subscription fee or to drive new readership. When it comes to PROGRESS in Lending, all of our content has and will remain free. Furthermore, we launched our monthly online publication Tomorrow’s Mortgage Executive magazine just one year ago and in under a year over 11,000 executives now read our magazine each month. We launched our daily e-letter in July of last year with 1,500 subscribers. Today we have over 8,000 subscribers that get our e-letter each and every day. That’s 375% growth in a little over a year. This had made us realize that as more information is shared online, you need to manage more passwords and you hate managing passwords. We all hate managing passwords. So, it gives me great pleasure to say here and now, “Throw out that password because you won’t need it here anymore.”
PROGRESS in Lending hosted ENGAGE 2011 a little over a week ago. Over 120 executives gathered for that event. If you were not there, we made a significant announcement. In the same way that we realize that the future is not about forcing you to remember another website password, we realize that the future is all about expanding our platform in new and creative ways. To this end, those that rely on PROGRESS in Lending will now also have a presence in the mobile world. We have used this new and emerging technology to expand the reach of our association by developing the free PROGRESS in Lending app that you can download today on iTunes.
The PROGRESS in Lending app is a fast and convenient way to view the latest lending news, analysis, thought leadership and opinions. Through this app, industry participants share their ideas about how to move the business of lending forward through a variety of different media. You will find news stories, columns, white papers, cutting-edge video and tweets from several different sources. It is a cornucopia of forward-thinking content of every shape and size all at your fingertips in one beautifully designed environment. Not only can you catch up on the latest and greatest going on in the area of lending, but all content can be shared with your friends and colleagues via e-mail, LinkedIn, Twitter and Facebook. This connectivity will allow you to easily apply the ideas garnered from these sources to grow your business.
This app is designed to make everything that you consume on the Web like PROGRESS in Lending’s daily e-letter, our monthly video newscast, our Twitter account and our monthly magazine, Tomorrow’s Mortgage Executive, better and easier to consume, share and use. Beyond just displaying content from PROGRESS in Lending, the app brings together trusted information from a variety of sources in this one app. For example, the app follows several industry Twitter accounts, presents research from other trusted companies active in the lending space, assembles interesting case studies and white papers, all in one app dedicated to giving industry participants a broader forum. Remember, progress is defined as “a forward or onward movement” and “gradual betterment.” No industry, lending or otherwise, can exist and/or thrive without continued progress. Simply put, this is the app for lending thought leaders and visionaries. Join the conversation and download the PROGRESS in Lending app to get a better understanding of what is needed to move the lending industry forward. Download the app HERE.
After all this talk, I think it is important for me to say, for the umpteenth time, thank you.
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 tony@progressinlending.com.
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You See What I Mean
By Tony Garritano
Remember the industry scramble to be RESPA compliant? Well, the new RESPA Rule has worked. It did its job. PROGRESS in Lending Association has learned that Ernst Publishing Company, an authority on land recording requirements to the mortgage marketplace, reports that a survey it conducted earlier this month showed that 57% of respondents think that the title and lending industry communicate “well” or “very well” in their efforts to comply with The Real Estate Settlement Procedures Act (RESPA). In addition, 35% describe the communication between them as adequate. Here are the other survey findings:
“The ability for title agents and lenders to communicate is critical to compliance with RESPA, so that statistic is welcome news for the mortgage industry,” said Gregory E. Teal, president and chief executive officer of Ernst. “Moreover, it suggests that they are working to ensure that regulations are closely followed and complied with.” The Ernst survey was e-mailed to more than 8,600 clients of the firm, of which almost 6% responded.
The aim of the study was to provide insight on how the industry was faring under several new regulations. “According to the survey results, many financial organizations have increased their ability to handle the new rules. For instance, 52% of respondents reported they were more prepared for the CFPB than they were six months ago,” said Teal.
The survey also found that 65% of respondents reported they did not believe there is still a disconnect between RESPA requirements for the GFE and the closing table; 82% of respondents thought that lenders are able to meet RESPA requirements and provide clear instructions for closing; 84% reported that costs decreased or stayed the same when they implemented an automatic tool to assist with the GFE-HUD1 process; and 59% believe the combined GFE/TILA will make closing loans easier for them.
So, while RESPA and other recent regulatory changes may seem like a burden, when the industry responds to these changes by further automating, everyone wins.
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 tony@progressinlending.com.
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A Dynamic Approach To Compliance
By Tony Garritano
Everyone is worried about compliance these days. But of course, I’m going to tell you that technology can help, and it is a true statement. For example, Motivity Solutions, creators of the business management platform called Movation, has formulated a new approach to tackling compliance. The pace of new regulation has been feverish to the point when it is almost unbearable for mortgage lenders. In response, Motivity Solutions has adopted a performance-driven approach that helps lenders remain ahead of any new regulation. Here’s the scoop:
Lenders that develop performance driven operations in an uncertain lending environment can realize the advantages that streamlined mortgage operations can deliver in terms of measurable business benefits and the impact it can have on their overall go forward strategies. Specifically, business intelligence (BI) technology can help lenders handle a host of compliance issues all within one system.
As lenders look to cut costs and be more efficient, BI technology delivered by Motivity Solutions through its Movation platform can ensure that individual activities are automatically assigned to employees based on their role and your company processes. Every employee has a workspace that displays the task they are working on and which tasks need to be completed – automatically and in real-time.
Managers can view the workload of their entire team and can easily assign work and load balance as necessary. Features like those described are important because lenders need to know where they stand relative to new regulation for a variety of reasons. For example, earlier in the year the mortgage industry was hit with new loan officer rules that stipulate that loan officer compensation cannot be based on a mortgage transaction’s terms. In order to avoid a stiff penalty and the label of being predatory, lenders can use Movation to track all elements of the loan and LO compensation.
Also this year the mortgage industry saw changes made to the good-faith estimate (GFE). Changes on the new GFE deal with binding fees, changes in how the origination fees/discount points are determined, how these are disclosed and what can and cannot be changed. Lenders will find it difficult to comply if they do not have a complete understanding of every element of the loan. Movation provides the ability to “manage by exception” and drill down to the underlying loan-level detail from multiple data sources.
However, if the technology is not accessible, it will not get usage. For this very reason Movation makes BI extremely user friendly and visual. To this end, Movation provides scorecards to enable the lender to be even more compliant and performance driven in a very complex mortgage environment. Movation Scorecards incorporate a variety of Key Performance Indicators (KPIs) which are defined metrics used to align small-scale operational activities with large-scale company goals. These KPIs are combined into a Scorecard which constantly monitors performance allowing you to compare and analyze goals versus actual results. Movation takes this a step further by proactively alerting key users when a pre-defined event occurs or when a threshold is reached.
But scorecards are just one way to make BI actionable. The technology also incorporates dashboards. Through the dashboards users graphically see high-level summary data and have the ability to drill down to refined levels of data to instantly identify and solve the root cause of a problem. Movation’s Dashboards are role-based and customizable to ensure employees only have access to relevant, job-specific data.
Together this technology can make it possible for lenders to get a handle on their operation and not only react to new rules and regulations, but to also get ahead of any new regulations that may come down in the future.
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 tony@progressinlending.com.
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Let’s Take on The CFPB
By Tony Garritano
The “Know Before You Owe” initiative at the Consumer Finance Protection Bureau began in May of this year when the new watchdog agency asked the public to compare two different draft designs of a new streamlined mortgage disclosure. In the months that followed, the CFPB used that input to help it improve initial draft designs. Altogether, the CFPB received more than 22,000 comments on how to improve mortgage disclosures. When revised disclosures are released it will represent yet one more hurdle for lenders already struggling to keep up with compliance requirements that continue to become more complex. In response to an ever-changing mortgage market, PROGRESS in Lending has learned that document compliance provider MRG has embraced a data-centric approach to document creation that will help lenders comply with this and any other document compliance issue that may arise in the future. Here’s the scoop:
Lending has significantly changed over the past couple of years. The pressure on today’s lenders is enormous. This lending environment creates dramatic loan document challenges and risks for lenders. Changing rules, regulations, and the ramifications of non-compliance, including fees, penalties and the possibility of buy-backs make the origination process an escalating challenge. Traditional “doc prep” is no longer the answer when lenders are trying to handle these complex and ever changing requirements.
Most lenders, quite frankly, don’t have the time or resources to staff a compliance department that can constantly monitor and accurately interpret the vast number of regulatory changes that are being implemented on a federal, state and local level. Unfortunately, the same is true for many traditional “doc prep” providers. Those providers that rely on an antiquated forms library to deliver static documents, with limited legal compliance analysts, are no longer a prudent choice. Relying on outdated, traditional “doc prep” is a risk that lenders simply cannot afford to take in an increasingly “compliance-centric” environment.
To this end, MRG Document Technologies (MRG) delivers complete, real time mortgage compliance directly into the document process – no static document templates for the lender to choose and manage internally. MRG attorneys constantly monitor the ever changing regulatory landscape and provide dynamic document compliance. MRG does not license any third party content or calculations, which allows MRG to fully rep, warrant, guaranty, and defend, its product. The product is backed by an E/O policy from full disclosure through closing packages, including calculations. No more need for an internal compliance staff to manually manage package content or selection, for fear of inaccuracy.
All document and calculation updates are compliantly and automatically delivered in real time. Together with the lender’s chosen LOS for a seamless, “lights out” approach, disclosure packages are drawn within 30 seconds and closing packages in just a couple minutes. Throughout the package request process, loans are checked with industry leading automated loan compliance tests, thus eliminating the need for additional 3rd party vendor software. In addition, MRG attorneys are available for services regarding general compliance advice, which is built into the overall compliant document solution.
These comprehensive document compliance solutions provide lenders with the ability to enhance their compliance initiatives. It also gives lenders the tools they need to increase loan production, speed up turnaround times, while significantly mitigating risk. By providing a staff of mortgage banking attorneys to lenders, MRG also delivers the support and regulatory monitoring required to ensure loans are meeting the latest regulatory demands.
Lending has changed forever. So too must the lenders document preparation solution. No longer can lenders rely on antiquated form libraries and technology from traditional “doc prep” providers that have limited legal expertise and experience. The risk and exposure is far too great.
In today’s regulatory environment, lenders must demand more from their “doc prep” provider – compliance and dynamic content technology.
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 tony@progressinlending.com.
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Big Tech Acquisition News
By Tony Garritano
In the past year we have seen some big technology acquisitions. Well, that trend continues today. One area of interest when it comes to recent acquisitions seems to be pricing and decisioning technology. We have seen both Ellie Mae and Calyx Software acquire PPEs. Long-time decisioning vendor Commerce Velocity also got acquired recently. Why the interest in this technology? As the mortgage industry looks to produce better quality loans, pricing and decisioning technology is going to be critical. In a bit of a twist, PROGRESS in Lending has learned thast this time it’s the pricing and decisioning vendor that is doing the acquiring. We have learned that Optimal Blue has completed a major acquisition. Here’s the scoop:
Optimal Blue, a Web-based platform that couples pricing and secondary marketing automation with content management for the mortgage industry, has acquired Sollen Technologies, LLC. The sale price and terms of the agreement were not disclosed.
This transaction gives Optimal Blue a more commanding position in the market, adding to its mortgage banking clients, comprised of independent mortgage banks, credit unions and community banks. The purchase of Sollen’s assets includes a business process patent. Optimal Blue will begin executing on the integration of the two companies’ products, customers and employees immediately, ensuring a smooth transition that maximizes the value inherent in the acquisition.
According to Larry Huff, co-CEO of Optimal Blue, “Optimal Blue has always been committed to growth, both organically and through acquisitions. Marking our third acquisition in the past few years, we believe the addition of Sollens’ customers, employees and technology enable us to gain market share immediately, while meeting a broader set of customer needs and expanding our opportunities for more growth in the future.”
Founded in 1999, Sollen Technologies was the first Web-based product eligibility and secondary marketing automation platform introduced into the mortgage market. Sollen has advanced the industry through its innovation for more than a decade, resulting in loyal customers and an entrepreneurial spirit that has paved the way for consistent enhancements in PPE technology. With a similar philosophy to Optimal Blue, the company has focused on increasing profits and efficiencies for mortgage lenders, through real-time pricing workflow automation.
“Given the alignment of our visions, technologies, and overall strategies, the combination of our two companies will advance our ambition of continued product innovation,” said Michel Van Hee, Sollen Technologies Chief Executive Officer. “With a similar ancestry and a devout customer-centric philosophy, we look forward to bringing added value to the mortgage banking community.”
Optimal Blue retained Milestone Advisors as its financial advisor and Ferguson Law Group as its legal advisor. Sollen Technologies retained Krall & Co. as its financial advisor and Walker Law Firm as its legal advisor.
Larry Huff will be on hand speaking at PROGRESS in Lending’s ENGAGHE 2011 Event. To hear what further details he may share about this news and his vision for the future of mortgage lending, we encourage you to RSVP to attend HERE.
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 tony@progressinlending.com.
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I Must Be A Lucky Guy
By Tony Garritano
Earlier this week I got a scoop on an advance in the e-mortgage space. So many smart people have been evangelizing on behalf of e-mortgages for so many years. So, when I just got another scoop on e-mortgage advances a smile came over me. It must be my week. I feel really positive that now lenders can start their e-mortgage journey. What makes this scoop even more compelling is that it also makes the burden of compliance in an over-regulated world easy. The technology is there. Here’s the scoop:
Earlier in the week I learned that eLynx partnered with e-signing and e-vaulting vendor eSignSystems, well now I have learned that eLynx has partnered with Compliance Systems, Inc. (CSi), to integrate CSi’s IntelleDoc Solutions, an intelligence-driven solution for compliance documentation, into its electronic closing network (eCN). Two hallmarks of the CSi IntelleDoc Solutions include its data-driven approach combined with a single data schema that supports all traditional lines of business including mortgage, consumer and commercial lending, allowing it to select and assemble the correct documents to perfect the transaction in any jurisdiction. The integration of IntelleDoc services with eCN provides eLynx customers with alternative options for document creation supporting the loan life-cycle.
“Lenders understand the need to be fully compliant, but they are also seeking flexible solutions that will facilitate their continued growth,” said Sharon Matthews, president and CEO of eLynx. “We are proud to bring CSi’s products to eLynx’s customers in a way that preserves their end-to-end electronic capabilities while supporting their existing workflows.”
“In today’s financial environment, lenders want more intelligence built into the software they use and this partnership delivers it,” said Dennis Adama, president of CSi.
“eLynx’s eCN is the network more mortgage lenders are relying on to close loans,“ added Roger Gudobba, chief strategy officer of CSi. “IntelleDocs Solutions provide lenders data-driven documents to be processed by eLynx’s eCN solution and allows them to close each loan in full compliance with the latest regulations and investor requirements.”
eLynx’s eCN solution has become an industry-recognized electronic closing platform, with more than 1 million loans being processed through the system annually and approximately 100,000 settlement agents registered in eLynx’s nationwide settlement agent database to close loans. eCN significantly eases reconciliation between the data and documents used in the loan closing process by providing secure connections between mortgage professionals and settlement systems.
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 tony@progressinlending.com.
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At Last
By Tony Garritano
Maybe I’m alone, but I love the reality show singing contests. I love American Idol, The Voice and now X-Factor. I just love singing actually. Last week one X-Factor contestant came up and sang Etta James’ famous song dubbed “At Last.” I thought it was going to be a train-wreck, but it was a really great rendition. I know you’re wondering where I’m going with this. Myself and others have been talking about the e-mortgage for a while. Along these lines, the scoop I just got made me want to sing that Etta James song, only it might go something like, “At last lenders have some more e-mortgage choices that have come along.” Here’s the news:
PROGRESS in Lending has learned that eLynx has entered into a partnership with eSignSystems to make the firm’s leading SmartSAFE e-vaulting software available as part of eLynx’s electronic closing network (eCN). The SmartSAFE Bundle offers a complete solution to store, access, and manage legally binding electronic mortgages. The addition of e-vault services to eCN, gives eLynx customers electronic options for all stages in the life-cycle of a loan.
Why is this news so significant to me? Because I remember a day when lenders only had one vendor to go to when they wanted to even consider doing a full or hybrid e-mortgage. Today there are many choices. And when industry leaders like eLynx start to offer this alternative, lenders will see the value.
“Lenders understand the value of an end-to-end electronic mortgage workflow but want to avoid the high risk of disrupting their established systems and processes,” said Sharon Matthews, president and CEO of eLynx. “eLynx’s customers can now easily and seamlessly extend their existing loan fulfillment to include e-vaulting services.”
“E-vault services allow lenders to improve efficiency and transparency of mortgages by reducing funding times and improving loan quality through an electronic workflow,” said Kelly Purcell, executive vice president of marketing and sales for Wave’s eSignSystems division. “SmartSAFE builds on the strong compliance foundation already built into eCN with additional audit logs and controls required for e-mortgage lending. We’re proud to be part of the eCN solution.”
eLynx’s eCN solution has become an industry-recognized electronic closing platform, with more than 1 million loans being processed annually and approximately 100,000 settlement agents registered in eLynx’s nationwide settlement agent database to close loans. eCN significantly eases reconciliation between the data and documents used in the loan closing process by providing secure connections between mortgage professionals and settlement systems.
The bottom line is that as e-mortgage technology becomes more accessible and easy to implement, lenders looking to increase efficiency and remain compliant will have little option but to go this route.
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 tony@progressinlending.com.
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