Calyx Launches New Portfolio Underwriting Capability

Calyx Software has launched Portfolio Underwriter, an automated underwriting system (AUS) from LoanScorecard. This service is now available to Point and PointCentral clients. Portfolio Underwriter allows portfolio lenders to customize credit decisioning and safely originate non-agency loans that they intend to put on their balance sheets.

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It captures a portfolio lender’s program guidelines within its engine and delivers a rules-based underwriting decision in seconds. Results of the decision are documented in a findings report. This report includes program-specific, conditional underwriting criteria utilized in the data analysis.

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Portfolio Underwriter seamlessly integrates with Calyx Point and PointCentral loan origination systems. The connection facilitates bidirectional data flow and provides a single system of record for all loan documentation. Centralization of processes and documents streamlines preparation for audits, board reviews and regulatory submissions.

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The solution helps portfolio lenders by:

>>Providing a mechanism to safely and easily communicate underwriting criteria for new niche products.

>>Conducting extensive loan file data checks and in-depth credit report reviews.

>>Allowing them to manage exceptions based on valid compensating factors on the loan, rather than loan officer “discretion.”

>>Ensuring consistent, transparent credit policy application to demonstrate Fair Lending and improve efficiency.

“Manually underwriting portfolio loans not only exposes lenders to Fair Lending issues, but is also time consuming and costly,” said Ben Wu, Executive Director at LoanScorecard. “By incorporating automated technology like Portfolio Underwriter, portfolio lenders using Point and PointCentral can improve efficiency by streamlining decisioning for their unique programs and focus on more complex transactions.”

“The predominant focus of Fair Lending violations is how and why loans were approved; therefore, it is critical to have an AUS in place to demonstrate the standard practice of quality underwriting,” said Bob Dougherty, Vice President of Business Development at Calyx Software. “While lenders are certainly familiar with agency AUSs, they are also aware of gaps in automated decisioning for their portfolio products. Portfolio Underwriter helps lenders who originate portfolio loans automatically determine the appropriate response for their institution—ensuring compliance with Fair Lending at the point of sale and in the underwriting process.”

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LOS And Doc Prep Integration Promotes Productivity

LenderLive Holdings, Inc. has launched a seamless integration between its GuardianDocs document preparation service and Point, the flagship loan origination software (LOS) from Calyx Software. This integration significantly improves the productivity of the two companies’ joint clients. Here’s how:

GuardianDoc’s interface with Calyx Point, launched last year, streamlines the ordering process and supports the generation and fulfillment of application disclosures and the closing package. When using the interface, all data is transferred from Point to GuardianDocs so there is no need for the user to log out of Point or go to a production website to re-key critical information to complete the document order.

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Cory Swain, Managing Partner of Premier Mortgage Resources, Portland, Ore., said his company switched to both Point and GuardianDocs last year in anticipation of the coming TILA-RESPA Integrated Disclosure (TRID) rule. Prior to that, Premier was working with another document provider that had only a partial interface with its LOS, and the workaround “wasn’t very functional.”

After switching to Point, Swain said, “There was an immediate pick up of probably 25 percent in productivity, and now that we’re used to the system we’re probably twice as fast as we were [in generating closing documents]. Last month, our two closers did 150 units by themselves. With our old system, I doubt that they’d have gotten through 80.”

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Richard Matzen, vice president of residential lending at Gateway State Bank in Iowa has seen a similar lift in productivity since switching to GuardianDocs. “Gateway has been a Calyx Point customer since 2012, but had been using a competitive doc system,” said Matzen. “This meant that we had to keep going in and out of Point to generate our closing docs. It was frustrating, and this was pre-TRID.

“The GuardianDocs/Point interface has probably cut 50 percent or more off of the time that it takes to generate a CD. And it’s really easy to make changes on the ‘fly’. When you make a change, it happens in an instant. Everything that’s in Point gets transferred to GuardianDocs, saving a tremendous amount of data re-entry, which is huge.

“Instead of spending maybe three hours preparing the loan closing document, now I’m doing it in an hour, so that gives me two extra hours to bring in new clients,” said Matzen.

“Everybody talks about seamless integration, but the reality is most lenders are forced to use partial interfaces which require lots of data re-entry and add time, cost and a higher probability of errors,” said Jonathan Kunkle, general manager of LenderLive Document Services. “When we partnered with Calyx, we invested the time and resources to close this gap and enable both of our technologies to work as they should. The early adaptors are reporting real productivity gains.”

Dennis Boggs, executive vice president of business development at CalyxSoftware, said, “GuardianDocs has proven the business case for a full integration with Point. As our joint clients can attest, this integration with our LOS drives significant productivity gains in the post-TRID environment.”

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There Is No One-Size-Fits-All Technology

Good vendors realize that no one technology tool fits all lenders. So, they look to offer a more innovative product set. For example, Calyx Software has developed separate versions of its Pricer Product & Pricing Engine for portfolio lenders with their own rate sheets (Custom Pricer) and originators looking for investor pricing supplied by Calyx (Investor Pricer). Here’s why:

Both versions are used seamlessly with Calyx Point, eliminating multiple logins, loan program templates, and the need to rekey data. The bidirectional data flow simplifies processes and improves accuracy and efficiency. Users can locate the best deals for their clients, see the street price for borrowers, and lock or float rates and their loans — all online within the software they use every day.

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Bob Dougherty, vice president of mortgage operations, Merchants Bank, N.A., who has used Pricer for years, particularly appreciates the product’s ease of use and the automated accuracy he can count on. “Having all loan products in one place, with the ability to check the loan levels for each and see any adjustments, keeps our team on track at all times. Pricer has sped up production and reduced errors, which helps our originators be more efficient and profitable.”

Loan originators can price scenarios instantly and correctly in both versions without using paper, and only eligible rate cards and programs are visible to users. Rate and fee information, including Loan Level Price Adjustments (LLPAs), are automatically imported into loan files. Pricer also sends, tracks and preserves every rate quote and lock request.

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“The latest enhancements to our Pricer solution are designed to better match the specific needs of both buyers and sellers in today’s more complex, post-TRID, post-QM market,” said Dennis Boggs, executive vice president, CalyxSoftware. “Our product and pricing engine gives originators the broadest view of what is available.”

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New Integration Enhances Loan Pricing

Mortech has completed a new integration between Mortech’s product and pricing engine (PPE) and secondary marketing solutions, and Calyx’s Point and PointCentral (Point) loan origination software (LOS). Through this integration, Point users can access Mortech’s mortgage product and eligibility information and compare loan pricing scenarios from over 400 supported investor rate sheets all within the Calyx interface.

“In today’s competitive market place, closing loan transactions quickly and efficiently is critical and lenders are increasingly looking for technology solutions to help streamline the loan process,” said Doug Foral, general manager at Mortech. “By aligning the Mortech and Calyx Software offerings, we are providing our customers with the mortgage automation solutions they seek to optimize their day-to-day workflow, bringing simplicity to the complex mortgage environment and ultimately, delivering a technological solution to allow our customers to close more loans more quickly.”

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The new integration provides instant access to Mortech pricing, including loan specific rate, profit and adjustment information, along with automating the lock request process by seamlessly transferring borrower scenario data between Marksman and Point. The enhanced integration removes manual data re-entry, reduces the possibility of human error, and improves loan-processing automation through multi-system interoperability.

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“At Calyx, we’re continually enhancing our software and adding quality technology partners to our network to offer a competitive edge to our mortgage banking and broker clients,” said Dennis Boggs, executive vice president of business development at Calyx Software. “Integrating Mortech’s product and pricing engine into our platform will simplify the searching process for our users and provide them access to pricing from Mortech’s extensive portfolio of supported wholesale and correspondent programs.”

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Integration Enables Compliance And Data Integrity

Doc prep GuardianDocs is now seamlessly integrated with Calyx Software. Now users of Calyx Point can order and complete initial disclosures and closing packages without leaving Point. Utilizing Calyx’s DirectConnect integration portal, GuardianDocs has created a complete interface for Calyx Point that streamlines the ordering process and supports the generation and fulfillment of application disclosures and the closing package. GuardianDoc’s complete and seamless interface alleviates the need to log out of the LOS and go to a production website to re-key critical information to complete the document order.

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When lenders order the disclosures and closing documents within Calyx Point, all data is transferred to GuardianDocs. In the case of missing information required to prepare the documents, integrated messaging alerts the lender of the missing data and lets them enter it in the messaging utility in the Calyx system. If nothing is missing, the documents come back complete and are instantly placed into Calyx’s eLoan file document repository. The entire ordering process can be completed in three to four minutes, according to lenders using the GuardianDocs-Point interface. In comparison to using a partial interface, lenders can expect to reduce their doc drawing time by at least 60 minutes per file.

“Data integrity is essential to create compliant documents and to have a true system of record; the LOS should house the source data, rather than your doc provider’s website. This will take on even greater importance in the new TRID environment,” said Jonathan Kunkle, president of GuardianDocs. “Our partnership with Calyx has allowed us to build a DirectConnect interface that streamlines document ordering and management, removes duplicative data entry, and eliminates steps that can create errors. As a result, users will see significant productivity gains and have greater assurance of compliance.”

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Dennis Boggs, executive vice president of business development for Calyx said, “GuardianDocs has developed the tightest integration of any vendor using our DirectConnect platform. We are pleased to work with a cutting-edge document services and technology provider like GuardianDocs to build an advanced interface that allows our lender clients to order and complete their initial disclosures and closing packages without ever having to leave our system.”

Point Is Ready For TRID

We are dedicated to detailing the TRID compliance approaches that we hear about to better inform our readers about what’s out there and what their options are. We’ve reported on how vendors such as Power Lender, DocMagic, CSi, eLynx, Ellie Mae, Motivity Solutions, MRG Document Technologies, LendingQB, etc. are approaching this on behalf of their lender clients. Today we heard that Point version 9.2 is ready to help mortgage lenders produce and deliver accurate, TRID compliant Loan Estimates (LE) and Closing Disclosures (CD). Here’s how:

After August 1, the mortgage industry will begin using a revised set of forms to disclose to consumers the costs of loans, making them easier to understand and giving borrowers greater confidence in the estimates provided. The Consumer Financial Protection Bureau (CFPB) rule will prevent fee and rate changes by lenders after the initial LE is disclosed and before the CD is issued, just prior to closing. The CFPB created the new disclosure rule, known as the TILA-RESPA Integrated Disclosure (TRID), as a result of the Dodd-Frank Wall Street and Protection Act.

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Calyx’s Point 9.2 release provides and automates the new LE and CD forms, and includes enhancements to ensure the generation of accurate and compliant disclosures. Doug Chang, President of Calyx said, “We learned recently that some origination software systems are only supporting TRID compliant LE and CD going forward from August 1. This means some lenders will have to stop originating loan types that still use the old forms after TRID goes into effect. It was quite challenging to continue supporting the current disclosures as well as adding the new disclosures within one system, and we are pleased that we managed it. We worked hard to maintain a user-friendly solution and limit the changes to a minimum, keeping many of the familiar steps and screens intact.”

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With Calyx, lenders now have a TRID ready solution that automatically calculates, rounds and truncates APR and TIP. “We think lenders are really going to enjoy using Point 9.2. Everything they need is right at their fingertips. The beauty of Point 9.2 is how easy we’ve made it to produce these new disclosures,” said Dennis Boggs, Executive Vice President of Business Development.

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Vendor Takes On Government Reporting

*LOS Takes On Government Reporting*
**By Tony Garritano**

TonyG***Lenders have enough to deal with so good technology vendors are stepping up to help out. For example, Calyx Software, a provider of loan origination software, now offers government-required regulatory mortgage compliance reports through — Calyx Verifyde. Here’s what you need to know about this new approach:

****Calyx Verifyde reports will help aid banks, credit unions, mortgage bankers and mortgage brokers with a one-stop solution to adhere to reporting regulations at both the state and federal levels.

****“Calyx Software has always provided high product value at an affordable cost and Verifyde continues that tradition,” Dennis Boggs, executive vice president of business development at Calyx Software, explained. “We wanted to keep Verifyde simple, so we created bundles to match each business type, with the specific state and federal reporting needs to match. No need to shop a-la-carte.”

****Initial regulations supported include the Home Mortgage Disclosure Act (HMDA), HMDA Plus requirements of the Office of the Comptroller of the Currency, NMLS Mortgage Call Report, North Carolina Mortgage Lending Act data uploads, South Carolina Mortgage Log System, RegulatorConnect Licensee Examination File, California Form RE 881 for brokers, Nevada Monthly Activity Report and New Hampshire Form 397-A-AR.

****“We will continue to develop new reports as compliance circumstances dictate,” Boggs continued. “Our initial offerings will provide customers a complete compliance reporting solution.”

Making Compliance Much Easier

*Making Compliance Much Easier*
**By Tony Garritano**

TonyG***Everyone knows that lenders are burdened by compliance these days. It’s tough out there. However, innovative technology companies are trying to ease that burden every day. For example, I just learned that QuestSoft has entered into an agreement with Calyx Software to provide QuestSoft’s line of compliance products to Calyx’s customer base of banks, credit unions, mortgage bankers and brokers. Here’s what this agreement means to the mortgage industry:

****Under the agreement, QuestSoft will package components of its HMDA RELIEF, Compliance EAGLE and the recently announced Compliance RELIEF line of regulatory products under the special Calyx label—Calyx Verifyde to replace Calyx’s current regulatory reporting options. QuestSoft will enhance the products on behalf of Calyx to ensure their Point and Path customers consistently adhere to the vast array of federal and state reporting regulations. QuestSoft will also provide training, programming and customer assistance as needed to directly benefit Calyx’s customer support operations in Dallas.

****Regulations initially supported include the Home Mortgage Disclosure Act (HMDA) along with all Dodd/Frank changes set to be announced shortly, HMDA Plus requirements of the Office of the Comptroller of the Currency, NMLS Mortgage Call Report, California Form RE 881 for mortgage brokers, North Carolina Mortgage Lending Act data uploads, South Carolina Mortgage Log System, Nevada Monthly Activity Report and other state regulatory reporting as needed.   QuestSoft will also provide direct assistance to Calyx customers for Community Reinvestment Act (CRA) and Fair Lending services.

****In addition, QuestSoft will be providing Calyx customers with a special set of error checks it has developed along with uploads of the RegulatorConnect Licensee Examination File required by the Conference of State Bank Supervisors (CSBS) for multi-state exams, and by some individual states for their exams.

****“Our new relationship with QuestSoft allows Calyx to significantly expand the automation in our compliance offerings and concentrate our resources on more productivity enhancements,” said Dennis Boggs, executive vice president, business development of Calyx Software. “We also now have an additional team of expert resources to rely on that is very hands-on in assisting our lenders with their compliance questions and concerns.”

****According to a 2010 study conducted by Access Mortgage Research & Consulting, 72.5% of mortgage brokers reported using Calyx Point as their preferred loan origination platform. A market leader for mortgage lenders as well, Calyx supports 36% of community banks, credit unions, and mortgage bankers with Point and PointCentral products. Added to QuestSoft’s existing client base, this new relationship will make QuestSoft mortgage compliance products used by more companies than all other private providers combined.

****“We have a long and trusted association of helping Calyx customers dating back nearly two decades”, said Leonard Ryan, QuestSoft President. “This opportunity is a solid victory for both Calyx and their customers given the complexities of today’s regulatory environment and our focus in this segment. The products we are including have successfully been used in over 10,000 audits over the past 18 years.”

****Ryan indicated that Calyx is expecting QuestSoft to begin providing compliance to its customers for the 2013 year end reports required to be submitted in the first quarter of next year. Calyx plans to separately announce the availability of its new compliance lineup to its customers and the industry within the coming weeks.

What’s Your Problem With E-Signatures?

*What’s Your Problem With E-Signatures?*
**By Tony Garritano**

TonyG***I know that lenders have been slow, to put it mildly, to embrace electronic signatures. Now that the I.R.S. is accepting e-signatures though, we are seing more traction. For example, National Credit-reporting System, Inc. (NCS) a full-service consumer reporting agency specializing in income, identity and credit intelligence, has integrated with Calyx Software’s Point, enabling mortgage lenders to save time and effort by streamlining the process of verifying a borrower’s income. Here’s how:

****Calyx Software, based in San Jose, California, is a provider of loan marketing, origination and processing software. Through this integration, users of Calyx Network now have access to NCS’ full line of TRV Services tax return transcript products, allowing them to obtain borrower income data from the IRS without leaving Calyx Point.

****“We are pleased to have NCS join the Calyx Network,” said Dennis Boggs, EVP, business development for Calyx. “We look forward to a productive relationship bringing superior service and profitability to our customers – and their borrowers – in the mortgage industry.”

****TRV Services provides concise ability-to-repay insight with customizable reports based on data obtained through the I.R.S. form 4506-T, the standard document used to verify a mortgage borrower’s income. NCS has an industry-leading acceptance rate of 96% for the 4506-T forms it submits to the I.R.S. on behalf of its clients and continues to develop new ways for its clients to close more loans while efficiently meeting evolving compliance requirements.

****“By providing TRV Services to all users of Point, we will greatly streamline the borrower verification process and speed up workflows,” said Curtis Knuth, executive vice president of NCS. “We’re looking forward to showing current and prospective clients this exciting new integration.”

****NCS offers its solutions directly to customers as well as through TRV Alliance Partners, a network of reseller credit reporting agencies (CRAs). Its range of performance metrics reporting and customizable product options include the TRV Report, TRV AGI Report and the highly requested TRV Cash Flow Analysis. All options are available to NCS and Alliance Partner clients, regardless of volume or size.

OUR Point Of View: Correspondent And Wholesale Are Alive And Well

*Correspondent And Wholesale Are Alive And Well*
**By Ben Wu**

***It seems like I am always reading headlines about the demise of wholesale and correspondent. I’m here to say that even though the landscape has been visibly altered, it hasn’t been the bad thing many predicted. The correspondent channel is definitely growing, but the wholesale channel has dwindled over the last few years. Nonetheless, both channels have indeed changed. Some of the big players have exited, but that has set the stage for smaller players to step up. The success of this sector actually stems from the exit of the major players like B of A and others all but disappearing for one reason or another.  Here’s how some of our correspondent and wholesale clients have adapted.

****First, the exit of some larger players is leaving a vacuum that mid-tier players can fill. Second, some active lenders that have a retail channel are now looking to add a correspondent channel as a growth mechanism. So, they’re looking to see what it takes to be successful in this area. They need help.

****Just to share our experience here at Calyx Software, we were talking with one such lender and they realized that they needed to offer an automated underwriting system on their website to thrive in this new sector and compete with those already offering instant decisioning. Why? Brokers and other third-party originators need to come to your site and get a decision in seconds. Time is money.

****Today you can do that through DU, but in that case you are picking up the cost. Every time a DU decision is rendered the lender has to pay a fee even if the loan doesn’t close. That adds up and I don’t know of any lender actively looking to add more cost. To the contrary, they want to be more efficient and more competitive.

****However, adding AUS functionality on your website doesn’t have to be a huge roadblock to adding a wholesale or correspondent channel. Actually it’s pretty easy to incorporate this feature within your Web presence if you’re aligned with the right technology provider. For example, we at Calyx can cut the fees associated with AUS decisions in half or more. If the lender uses our LoanScoreCard AUS for FHA loans, the broker or TPO visiting the lender website will receive a comparable result to DU.

****Here’s what I mean: If the lender has a DU integration, they would also have a 1003 on their site so that once the required fields are completed, the system triggers DU to render a decision. From there the lender is charged a DU fee. Lenders now have the option to change their website to trigger a proprietary AUS that will render a comparable decision. The transition is transparent to the end user and it’s cheaper for the lenders—giving them a prime opportunity to enter these new sectors and potentially grow their business. As the tide turns and more wholesale and correspondent lenders enter the market, to be competitive they will need to take advantage of all the cost savings and efficiency their technology can offer.