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Credit Interlink Integrates Income Verify With LendingQB For Faster Verifications

Credit Interlink, a provider of SaaS mortgage origination technology solutions, has integrated its Income Verify, with LendingQB, a provider of SaaS loan origination technology solutions, to facilitate quicker and more efficient 4056-T verifications.

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Thanks to certification through Fannie Mae’s Day One Certainty, Income Verify has direct access to tax transcript verifications through the IRS in order to expedite the time needed to process requests within LendingQB’s LOS. Likewise, the solution better prevents the risk of fraud through its secure interface, creating a more cost-effective way to collect borrower data.

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“In a world growing more dependent on digital technology, borrowers have come to expect the lending process to replicate experiences they experience in other areas,” said Mark Yoder, Vice President of Business Development, Credit Interlink.  “With Income Verify, borrowers are able to provide their information up front and loan officers are able to verify it without adding unnecessary delay to the origination process, all in a secure manner.”

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LendingQB’s web browser platform provides mortgage lenders with core LOS capabilities using modern web-optimized technology, enabling robust integrations to other web platforms such as Credit Interlink. Using LendingQB’s API framework, Credit Interlink is able to extend the capability of lenders, expediting the origination process and allowing more direct interaction with borrowers and other parties to the loan.

“Credit Interlink’s streamlined approach to data verification, credit and fraud is innovative and perfectly fits the ever-changing mortgage industry,” said David Colwell, vice president of strategy at LendingQB. “By utilizing Income Verify, our lenders are able to verify borrower data in a fast and safe manner, enabling them to reduce the time needed and the overall cost to originate loans.”

Enhanced Offering Provides Much-Needed Differentiator For Lenders

Mortgage Coach, creator of point-of-sale borrower conversion software, has partnered with Optimal Blue, a provider of secondary marketing automation. Through direct integration with Optimal Blue’s API platform, every Mortgage Coach application now seamlessly connects real-time, compliant product and pricing data with the compelling financial analyses Mortgage Coach is known for.

Through this collaborative effort and newly expanded product offering, Mortgage Coach and Optimal Blue enhance their long-standing strategic partnership and take their industry value proposition to a whole new level.

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“Without ever leaving the Mortgage Coach app on their mobile device, loan officers can create informative, side-by-side comparisons highlighting multiple loan programs and comprehensive pricing information in just seconds,” explained Bob Brandt, Vice President of Marketing & Strategic Alliances for Optimal Blue. “Combining the sophisticated product and pricing data at the heart of every mortgage transaction with a compelling user experience — and doing so whenever, wherever it matters most — is a game changer for the industry.”

The benefits are not exclusive to lenders and loan officers. Today’s consumers immerse themselves with the details behind major financial decisions and pride themselves on deeply understanding their alternatives. Mortgage financing is no exception. When provided with a comparative, in-depth analysis of the financial impact of their best financing alternatives in a highly consultative environment, consumers are more engaged with their loan officers and more likely to move forward with a loan.

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“In today’s price compression marketplace, converting every prospect into a borrower is the most important aspect of achieving increased profits for mortgage lenders,” said Joe Puthur, President of Mortgage Coach. “This new innovation gives lenders the instantaneous benefit of earning more commitments at a lower cost of acquisition.”

Mortgage Coach, the company’s flagship platform, is the technology behind the Total Cost Analysis (TCA), a report that illustrates the long and short-term impact of any loan program on the borrower’s financial situation. The TCA incorporates real time rates, fees, closing costs, and program information and presents its findings using simple yet powerful graphical elements like charts and graphs. The TCA provides a level of clarity that is virtually impossible to achieve without the Mortgage Coach platform.

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“The difference between using a TCA to explain mortgage options and using any other method is like the difference between having a film described to you versus watching it in high definition with Dolby sound,” explained Mike Hardwick, President of Churchill Mortgage. “Having been in partnership with Mortgage Coach and Optimal Blue for several years now, we’re happy to have helped thousands of borrowers make a better, more informed decision. These new capabilities will provide greater clarity, transparency, and confidence to any borrower – in a way that is faster for every loan professional.”

An LOS To Satisfy All Lenders

Most loan origination or LOS offerings look to target specific size lenders with different offerings for a top 50 lenders vs. a smaller lender, for example. Wipro Gallagher Solutions (WGS), a Wipro Limited company and provider of loan origination software solutions, has launched its NetOxygen SaaS loan origination solution for mortgage lenders of all shapes and sizes.

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NetOxygen SaaS brings the power of NetOxygen, an enterprise class loan origination system that helps lenders reduce origination costs and boost production efficiency through automation.  NetOxygen connects to a front end portal and fintech offerings thus providing seamless interactions to improve borrower experience. NetOxygen SaaS enables quicker deployment and scalability to match business growth with an all-inclusive, per transaction pricing, which is based on business outcomes.

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NetOxygen SaaS provides comprehensive product coverage across mortgage, home equity, HELOC (home equity line of credit) and unsecured credit lines origination. The platform integrates an extensive vendor ecosystem which provides multiple options for standard services like credit, appraisals, fraud checks, etc. NetOxygen SaaS supports retail, correspondent and wholesale markets, and also enables niche offerings like construction lending for one close, multiple close, homestyle renovation and FHA construction.

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Key features of NetOxygen SaaS include:

>>Sophisticated workflow engine, allowing lenders to implement distinct lending policies and procedures;

>>Automated underwriting for improved efficiency;

>>Comprehensive pool of rich APIs, to enable easy integration with other applications;

>>Advanced feature supporting ADR and OCR capabilities;

>>Self-service tools to enable lenders to perform more tasks, with ease and speed.

“NetOxygen SaaS offers an extensible and scalable platform that caters to lenders’ ever-changing business needs and provides an all-encompassing solution to improve end-to-end loan origination,” said Scott Dunn, Head Product Management, Strategy and Compliance, Wipro Gallagher Solutions. “Among the platform’s many differentiators, what stands out is the ability to quickly configure business rules, products, fees and deliver industry leading functionality  for compliance, imaging, reporting, and documents generation in combination with best-in-class providers.”

About The Author

Tony Garritano

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.

One Major Impediment To Digital Mortgages-Solved

As I travel across the country attending numerous industry events, meeting with a host of strategic partners, and talking to hundreds of lenders, everyone wants to discuss digital mortgages.  In those discussions, it is clear that to truly deliver on the digital mortgage promise of providing a simple, yet powerful borrower experience while streamlining the mortgage process and reducing costs, collaboration is key.

Quality partnerships are critical to providing the type of collaboration that is needed. No one provider can deliver everything required for today’s digital mortgage.  These partnerships can deliver real-time access to data with direct integrations; allowing providers to pass pertinent data to the loan transaction more quickly and seamlessly to both loan officers and borrowers during each step of the loan life cycle.

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With this channel-less strategy, productivity increases and has the potential to reduce costs for the lender.  These strategic partnerships also put a dynamic blend of powerful resources, like pulling credit or running pricing scenarios, into the palm of the hands of loan officers when and where they need this information for the borrower.  Efficiency increases as lenders nurture borrowers and better facilitate all phases of the digital lending process.

In addition, the right strategic partnerships and digital mortgage platform can deliver valuable simplicity. The days of app overload are over. Loan officers can now have a single, branded platform to manage the loan lifecycle.

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While most would agree that the benefits of collaboration through strategic partnerships is the way to improve the digital mortgage experience, one major impediment to this still exists in the traditional partnership model.

Historically, service providers spend a great deal of time discussing the benefits of partnering, potential mutual clients, and how the partnership will provide incredible value to the industry.  Then the discussion turns to who is going to pay for the time and resources to create the integration, test it, and maintain it going forward? The partners inherently decide to create a revenue- sharing integration model.

That’s where the impediment lies.  The traditional revenue-sharing integration model increases the cost to lenders and in turn the borrower.  Therefore, the goal in delivering a digital mortgage is providing a simple yet powerful borrower experience while streamlining the mortgage process and reducing costs through collaboration just increased the price to originate.

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At SimpleNexus, we take a different approach.   We are committed to working with our strategic partners to better deliver on digital mortgage expectations without demanding a revenue sharing integration model; reducing the cost to lenders and their borrowers.  This type of collaboration is making a profound difference in the mortgage industry, which is why 15 of the top 30 lenders partner with SimpleNexus.

We are the mobile-first digital mortgage solution that makes everyone’s life easier.  Lenders can make everything more convenient for their borrowers. Applying for a loan can be done from anywhere. Instead of sending their W2s, bank statements, or tax returns to your office, borrowers can securely send documents using their phone. If they have a question or need to call, they can easily access your contact info from a branded app. If only the rest of life could be this easy.

Who wouldn’t want to work with a lender who makes mortgages easier? Mortgage lenders who use SimpleNexus close loans up to 20 percent faster—which means borrowers get into their homes faster. With one straightforward system for borrowers to use, you can make everything easier, faster, and more cost-effective.  A powerful way to deliver on the digital mortgage promise.

About The Author

Joe Wilson

Joe Wilson is chief sales and marketing officer at SimpleNexus, a digital mortgage solution provider serving 15 out of the top 25 retail mortgage lenders in the US. SimpleNexus enables lenders to originate and process loans from anywhere. Loan officers can manage their loan pipeline, order credit, run pricing, and send pre-approvals— all on the go. The platform also connects loan officers to their borrowers and realtors to easily communicate and exchange data in a single location throughout the entire loan life cycle. Today, SimpleNexus serves more than 160 enterprise mortgage companies and more than 15,000 loan officers nationwide. Over 450,000 borrowers have used the app, resulting in $100B+ in transactions flowing through the platform.

How Digital Can Drive Down Costs

In this era where smartphone and tablet usage permeates nearly all of life, it only seems logical that the purchase of a home would eventually move in the digital direction as well. This certainly creates a situation where the loan package can be digitally moved with minimal cost rather than printed (multiple times, most likely) and physically moved between geographies. Therefore, processing delays associated with in-transit time and cost can be reduced, improving the overall process for both lender and borrower.

However, while borrowers may be able to upload copies of their paystubs and bank statements for example, the data must still be gleaned from those documents as part of the underwriting process. Without the aid of sophisticated OCR, that gleaning process remains a manual process, even though the mortgage is “digital”.

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With the costs to process each mortgage continuing to rise, lenders must leverage automation to improve profitability and consistency in their business processes. With advanced mortgage OCR solutions, mortgage companies will reduce their level of manual document indexing and data entry activity, enabling them to process more loans per day at a lower cost per loan – yielding a leaner process and increased profit margins.

Paradatec’s Advanced Mortgage OCR solution does more than just convert document images to text. Once converted, that text is then processed by our artificial intelligence (“AI”) rules engine in the same way a human being would process the content. Based on these rules, documents are automatically indexed and relevant data points are extracted. This information is then passed to downstream applications for appropriate routing, decisioning, and archival.

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Our process begins with a full-page OCR scan of each image, typically completed in less than one second per page. This high-speed performance allows every word on the page to be included in the scope of the AI rules engine analysis, just as a human being would interpret the content. This content evaluation process is unique to Paradatec in terms of the combination of speed and ability to include all page content in the evaluation scope, thereby making it extremely flexible with documents of varying layout (for example, bank statements).

Other OCR solutions typically expect relevant data points to consistently appear in the same locations (or ‘zones’) on a document. If the data shifts due to changes in layout (again, think of bank statements), the zone-based approach will fail unless another layout template is created, making for a greater administrative burden with these solutions.

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A high volume, scalable OCR automation initiative requires the flexibility of Paradatec’s Advanced Mortgage OCR solution to process an unlimited number of document layouts without needing to develop specific templates for each layout variation. This capability is unique to Paradatec and a vital feature for creating an effective unstructured document classification and data capture solution.

Applying the right technology in the digital lending world can drive down cost providing lenders with a significant competitive advantage.

About The Author

Mark Tinkham

Mark Tinkham is Director of Business Alliances at Paradatec, Inc. Over the past twenty-five plus years, Mark has worked for technology companies that deliver innovative solutions to the financial services industry. For the past ten years, his primary focus has been bringing efficiencies to the mortgage market through industry leading Optical Character Recognition (OCR).

The Digital POS Movement

The digital mortgage revolution resulted in a mad rush to mortgage websites and online 1003 applications. But lenders struggled to turn their new website visitors into borrowers. That’s where a digital POS factors in: A POS makes buying a mortgage like ordering a product off an ecommerce platform, at least the good ones do. With a digital POS application, mortgage companies can close more loans faster at a lower cost than traditional loan origination.

E-commerce volume increased nearly 12% y/o/y from 2016 to 2017. Expect for that same trend to follow people shopping for mortgages. According to a study by the National Association of Realtors, 44% of all homebuyers began their search online. 95% went online to gather information at some point, including 99% of Millennials and 77% of Silent Generationers. Digital home searching generated tangible results, spurring 76% of Millennials to drive by a home because they saw an online advertisement. Although the data indicates that digital is vital to capturing homebuyers of all ages, the data also demonstrates that capturing the Millennial buyer provides the most robust and lucrative opportunity for lenders.

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Millennials make up about one-fourth of the US population, signifying a 77-million-person opportunity for the mortgage industry. According to Inc. Magazine, Millennials make up 66% of first-time homebuyers and 66% of them plan to buy a home in the next 5 years. As of 2017, Nielsen estimated that Millennials wield more than $1 trillion in annual buying power. The October 2017 composite forecast of Fannie Mae, Freddie Mac, and the Mortgage Bankers Association for 2017 mortgage origination volume reaches approximately $1.8 trillion. If Millennials compose 50% of this mortgage volume, and two-thirds of them apply online via digital applications, that represents $600 billion in digital mortgage origination. This number is massive. Better yet, it’s conservative.

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Digital POS’s further impacts lenders by streamlining the loan origination process and mitigating the slowing effect of regulatory compliance. The loan origination process always stood as a long, arduous, drawn-out series of sending documents for verification, waiting to receive them back, and then reeling in borrowers to sign and approve each step of the process. Then came 2008. When the mortgage market collapsed, lawmakers dropped a bomb packed with regulations and compliance standards like Dodd-Frank, RESPA, TILA, and CFPB. According to the Mortgage Bankers Association, between 2010 and 2017, mortgages took 70% longer to close and origination costs skyrocketed 80% as the burden of regulatory compliance grew.

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But technology is turning the tides. According to a November 2017 article in The Mortgage Reports, mortgage closures averaged 43 days, down from 51 days earlier in the year — a near 16% decrease with no help from decreased regulation. With today’s most advanced digital POS, lenders need not send documents to various verifiers and wait days on end to receive confirmation. Seamless data integrations and automations engineered into digital POS’s shave days off of loan origination timeframes. As integrations and automation speed up loan processes, it also cuts costs and leads to more closed loans.

About The Author

Kelcey T. Brown

Kelcey T. Brown is Chief Strategy Officer & Executive Vice President at WebMax, LLC. Brown is responsible for developing, communicating, executing, and sustaining strategic initiatives. He acts as a key advisor to the company’s president on critical changes in the competitive landscape, internal employee development and the external business environment. Brown has worked for nine years in the Real Estate and Mortgage Technology Industry.

Vendor Expands Its Digital Platform

Capsilon has expanded its digital mortgage platform through the addition of big data capabilities and a new set of smart tools designed to improve back office workflows and accelerate loan production. With this new data audit functionality, Capsilon can reduce manual data entry and speed up data auditing across the loan process. Here’s how:

The company claims that this new functionality enables companies to automate up to 80% of manual processing. In addition, Steve Viarengo has joined Capsilon as Senior Vice President, Product Management. With more than 20 years’ experience, Viarengo brings to Capsilon a deep expertise in building enterprise software solutions that not only scale, but also drive significant process innovation. Viarengo was most recently Vice President Product Management at Oracle HCM Cloud.

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“Capsilon has made an extensive investment in building its digital mortgage platform, which enables the development of new tools that use deep learning technologies and automated workflows. This is the first in a series of product rollouts intended to leverage Capsilon’s proprietary intelligent process automation capabilities, and I look forward to driving the next generation of tools that transform how mortgages are delivered,” says Steve Viarengo, SVP of Product at Capsilon.

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Capsilon seamlessly integrates all stakeholder workflows, from the borrower to loan officer and underwriter, to third party originators and servicers, to deliver cost and time-saving improvements. For every mortgage, Capsilon collects data from direct sources and documents. Its patented data recognition and extraction software distils this data into accessible, user-friendly information. That, combined with Capsilon’s proprietary rules engine and intelligent datasets, powers its back office workstations so that each stakeholder can make smarter, faster decisions, at the right point in the process. With the new data audit capability, the platform can dramatically reduce manual processes across functions.

“By automating manual workflows and acting as a data clearinghouse, Capsilon ensures the best data goes into our loan origination system,” says Kevin Peranio, Chief Lending Officer at Paramount Residential Mortgage Group (PRMG). “This maximizes our investment in our existing infrastructure, improves the efficiency of our LOS and accelerates our loan production.”

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“We’ve been working towards this level of process improvement since we launched Capsilon more than fourteen years ago,” says Sanjeev Malaney, Capsilon’s Founder and CEO. “We began by solving the problem of document management, which gave us a unique understanding of the complexity of data and how that information can be used to make mortgage decisions. It is this knowledge that has laid the foundation for this next evolution of productivity built on our digital mortgage platform. We now have the complete architecture to power a more streamlined way to deliver a mortgage, and it doesn’t stop here.”

Tony Garritano

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.

New Online 1003 Solution Hits The Market

SimpleNexus, a provider of digital mortgage technology, has launched a new online loan application solution, adding to its suite of origination tools. The new web application assists mortgage lenders with increasing customer engagement by making the process of applying for a mortgage easier.

The web application integrates with the native app and entire SimpleNexus digital mortgage platform, creating an omni-channel experience that gives loan officers or realtor partners a simple way to immediately get the loan application into the hands of the borrower to fill out and complete.

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Borrowers can search for homes, apply for a mortgage, run calculations, upload documents and see real-time status of their loan progress. The loan application is responsive, ensuring easy navigation, regardless of the screen size or device.  This significantly increases loan pull through while reducing abandonment rates.

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“Our custom online loan application improves the borrower experience by cultivating the human to human interaction with new technology that enhances rather than replaces the role of the loan officer,” stated Joe Wilson, SimpleNexus chief marketing officer.

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Mortgage Lenders can fully configure the loan application, choosing which questions to ask and in which order they appear. The online application is custom branded to the lending institution and includes individual pages for each loan officer to share.

SimpleNexus provides a private-label digital mortgage platform and mobile app that connects mortgage lenders with borrowers and real estate agents, allowing all parties to easily exchange data and documents through the lifecycle of a mortgage loan. With SimpleNexus, a loan officer becomes a mobile originator. Through its smartphone app, loan officers are able to view new loan applications instantly, pull and view credit reports, run live pricing scenarios via Optimal Blue, see a live CRM feed and send pre-approval letters—all of this from the palm of their hand, as the app connects real-time with their LOS.

Advancing eNote Adoption

MERSCORP Holdings, Inc. (MERSCORP Holdings) and eOriginal, Inc. have launched a new solution offering that will enable originators to accelerate entry into the digital mortgage ecosystem.

MERS eNote Solutions, part of the MERS eSuite, will enable the creation, execution, registration and management of the electronic promissory note, or eNote, to mortgage originators across the industry.

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“MERSCORP Holdings is proud to provide technology-based solutions that add value to our members’ bottom line,” said Brendon Weiss, MERSCORP Holdings Chief Operating Officer. “Our members identified several gaps that need to be addressed to increase eNote adoption, and this new solution fills a significant need for originators seeking to leverage existing vendor relationships.”

MERSCORP Holdings is the owner and operator of the MERS eRegistry, the national mortgage registry and legal system of record for identifying the controller (holder) and location (custodian) of the authoritative copy of registered eNotes. Interest in the production of eNotes continues to grow as consumers and lenders recognize the value of moving toward a more streamlined, electronic process. With more than 5,000-member organizations, MERSCORP Holdings is central to the growth of digital mortgages, and the new service provides a turn-key solution to those members who are driving toward a paperless process.

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“This solution will enable thousands of originators to realize the benefits of a digitally executed promissory note at the closing table. The eNote is the most important document of a digital closing because it is critical for the funding of electronic mortgages by investors,” said eOriginal Senior Vice President and General Manager of Digital Mortgage, Simon Moir. “MERSCORP Holdings, as the operator of the MERS eRegistry, has been instrumental to the advancement of digital mortgage. We are proud to have eOriginal’s technology power the MERS eNote Solutions.”

eOriginal delivers a fully digital mortgage and supports every type of digital closing strategy. By creating a ‘digital original,’ eOriginal guarantees trusted transactions of digital financial assets. Major financial institutions, leading law firms and credit ratings agencies have validated and rely on eOriginal as a trusted partner with the greatest depth of digital transaction management expertise to navigate and advise on industry best practices.

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Hopefully partnerships like this will move the eNote ball forward.

About The Author

Tony Garritano

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.