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Pavaso Names Tim Anderson SVP Of Business Development

Pavaso announces that Tim M. Anderson has been named senior vice president of business development. In this role, he is responsible for developing products, strategies and relationships that drive adoption of Pavaso’s suite of digital products and services.   


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Anderson is well known in the mortgage industry for his advocacy and promotion of innovative technologies that enhance the mortgage process. He brings over 35 years of industry experience on both the lending and vendor sides of the business. Andersonunderstands the demands of the constantly changing mortgage industry and delivers solutions that improve efficiency, reduce costs and increase stakeholder satisfaction across the mortgage lifecycle. 


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Prior to joining Pavaso, Anderson was director of eStrategy and services for a software company specializing in compliant loan document production and delivery. He previously held executive management positions with a national title insurance company and several large financial and technology companies, where he executed strategies to expand eCommerce and support digital transaction management. Anderson is the founder of eMortgage Alliance which promotes MISMO standards for delivering legally compliant paperless processes.   


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Anderson is an active member of the MBA Residential Technology Committee, MISMOeMortgage Workgroup, Electronic Records and Signature Association and the ALTA Technology Committee. He also serves on the vendor technology advisory committees for two government-sponsored enterprises. Anderson has served on MBA’s Board of Technology, eMortgage Adoption task force and MISMO Governance Board, as well ason advisory boards for the Financial Services Housing Roundtableand one of the largest technology information companies in the world.


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Plano, Texas-based Pavaso is transforming the mortgage process with innovative digital mortgage closing technology that facilitates easy, convenient and streamlined closings. The Pavaso platform offers a single, collaborative, secure portal that promotes transparency, efficiency, consumer education and communication in a seamless format that delivers value to every stakeholder involved in the transaction. 

Driving Factors For Change

In response to “The Great Meltdown,” the passing of Dodd Frank created a totally new regulatory agency the Consumer Financial Protection Bureau (CFPB) with broad regulatory and enforcement power and the bureau’s name was clear. Their primary focus is all about how lenders should treat their customers (consumers) and it introduced and imposed many new workflow requirements as to how this should be accomplished. Major regs like QM, TRID, HMDA and UCD have greatly impacted lenders, but the response to this has driven, many new products and workflows to support them. 


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GSE’s Driving the Process – Move to collecting more and better data 

As the saying goes, “Whoever has the gold makes the rules” and when it comes to what drives future trends I always look for what the investors require to package and sell them loans as you are not going to originate a loan that cannot be purchased by them to ensure fungibility 


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Automated data verification services

Partially in response to above the GSE’s jumped on board with their Uniform Mortgage Data Program (UMDP) that is utilizing MISMO data standards to introduce more automated, direct to the source (VOI, VOD, VOE) system to system data validation and verification services to reduce origination time and steps and secondary market risk. With new automated workflow products such as Freddie Mac’s Loan Quality Advisor and Fannie Mae’s Day One Certainty they are continually perfecting the model to eliminate steps, requirements and streamline the process from the traditional, linear paper verification mortgage process and putting enhanced reps and warrants around this as further inducement to implement and adopt. 


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Collecting more data upfront in the process and being able to validate it sooner results in processing and closing good loans sooner and shrinking the time to close. 

Move from a post-Closing to pre-Closing automated QC review 

Also supporting above trend, the three-day delivery requirement of the Closing Disclosure (CD) of TRID along with the GSE’s Uniform Closing Data Set, (UCD) mandate provides a huge benefit to ensuring the quality of loans pre-closing Vs post-closing. This will finally drive the value prop of eClosing as that will be the only way to ensure data and document compliance and integrity because if you paper out at closing you lose the entire benefit of maintaining a complete electronic audit trail (evidence of compliance) because you have no way of knowing what changes were made at the closing table if now leave the electronic system of record, (eVault) that captures any and all changes made to the disclosures and paper out. 

Competition for the consumer – Mining the Gol

Speaking of gold, just like the gold rush the forty-niners went to where they thought the gold was and in today’s world it’s online. Online is where the consumers are. The technical power of Smartphones, tablets and much improved transactional web sites to attract consumers eye balls, interaction and stickiness to keep them engaged and coming back for more have advanced the focus of technology to capturing consumer clicks at Point of Sale, (POS).

Creation of the new “Fintech’s” to “E”nhancing the consumer “E”xperience

With silicone valley investments and ability to develop with newer web services technology, the legacy LOS companies were slow to recognize and seize upon the opportunity to capture the consumer at the get go.  At time of application or Point of Sale, (POS). 

This has launched the creation of “Fintech” companies to create more intelligent, logical and consumer friendly UI’s at POS.  As use and demand grows for them they will continue to evolve and expand their functionality to support a full end-to-end Digital <Mortgage process. 

Drive to a ten-day close and a ten-minute closing 

Another result of capturing more data sooner is the ability for intelligent AI and machine learning systems to automate more of the routine decisioning that underwriters make. With machine learning you can build mortgagebots behind your consumer UI’s to handle the most routine, rote questions and automate responses and with AI you can mimic and continue to optimize the results of your best underwriters to ensure consistency of results across the enterprise. The real power of these systems is that they are constantly updating and learning so with every instances and response they will provide even better and more intelligent responses over time.

Blockchain Vs. eVault

Like so many of us in this business, because there are so many touch points and multiple people (both internally and externally) having to sign-off and agree on implementing something new, technology innovation, adoption and progress happens slowly in our space. But that does not preclude us for looking at the next shining object. Blockchain is one of those objects.  If we looked back in history within the mortgage space, the long list of hot technology buzzwords and acronyms that were once big news, are no longer even talked about.  

The formation of MERS and the GSE’s embracing eMortgages eVaults have existed for some time and have the legal infrastructure to support capturing the full electronic chain of evidence of events to provide a full electronic date and time stamp audit of key milestones and transactions to prove compliance.  Early on and to this day many people only believe the reason you need an eVault is to support the secure registering of a SMARTDoc® eNote with MERS, but it can and should be to provide a full electronic accounting, tracking and evidence of consumer compliance across the entire mortgage process to protect against future audits or anyone contesting the legal validity of the loan downstream. From loan application to servicing. 

SMARTDocs® Vs Smart contracts. 

Blockchain is also held up as the “new” solution to ensure the security and sanctity of the data. But one of the real values of implementing intelligent SMARTDocs® today is that any data on the document can be authenticated, shared and secured (tampered sealed) down to the field level so why wait for a totally different technology when eVaults have the legal vetting and investor acceptance to solve that need today. 

Investors acceptance of eNotes
Yes.  We’ve been talking about an end to end paperless eMortgage process for years and the GSEs have been successfully promoting it, but Dear Investor Community, it’s time to step it up and accept eNotes already!  For those that do there is a lot of pent up demand with most of our clients still doing hybrids as they currently do not have an investor take-out to purchase eNotes.  But it’s coming soon and for those that are ready to step now, (price being the same) it’s going to hard for the Johnny-Come-Lately’s to participate because once that correspondent is electronically lock in and happy with the investor that worked with them to provide it sooner it’s going to be hard to come in later and displace them.

MISMO driving standards and adoption 

Finally, all the above would not make sense unless there was some sort of data standard that can capture and interpret the data in a common structure and terminology that makes sense to all systems across the mortgage manufacturing process that need to share and utilize it. MISMO has moved from being just a data standards group to now looking into how those standards can solve real business problems for lenders. Work groups like the Fee terminology, Doc Classifications, RON, Standard Closing Instruction Letter, Verifiable SMARTDoc® eNote, Third Party Risk Assessment, Electronic Evidence and the list goes on. All the trends and initiatives to above have incorporated MISMO to ensure the data, loan quality and most importantly compliance of the information that is shared across systems. 

Now that it appears at least for the time being that the CFPB has backed off from enforcement lenders have some time to take a collective breath and really look at doing some innovating and implementing technology strategically rather than the reactive and piecemeal approach to responding to the flurry of regs that have been inundating them for the last few years. Lenders only need to look at the rapid growth of a previous income tax technology company called Quicken to become the number one originator in the country to see how making it easier for consumers to do business with them Vs. the old, traditional, antiquated mortgage process to see who’s driving innovation and adoption in this space.

About The Author

The CFPB eClosing Pilot

website-pdf-download

Tim-AndersonMelanie-FelicianoAny mortgage professional can attest to the overwhelming amount of paperwork associated with the closing process. For consumers, this final step to homeownership has become notorious for causing confusion and even surprises in the form of unexpected costs. In an effort to assess how the industry can reduce the complexity of this arduous process, the Consumer Financial Protection Bureau (CFPB) introduced its mortgage eClosing pilot, with seven financial institutions and four technology vendors participating in this program. While the closing is just one portion of the mortgage, this pilot could be key to proving the value electronic records, e-signatures, electronic workflows and even electronic notarizations can have, bringing to light trends that are critical to the mortgage lending world as a whole.

The eClosing pilot went live at the beginning of the year, and is exploring how the use of technology during the closing process can reduce frustration for consumers, improve their understanding and, at the same time, help lenders uphold compliance. Stemming from the CFPB’s Know Before You Owe initiative, it is largely expected among industry professionals for this pilot to, in fact, demonstrate that electronic processes accomplishes these goals.

In addition to the value of modern technology, the eClosing pilot is demonstrating the importance of accurate data. To this point, the primary focus for lenders has been on completing and delivering disclosure forms three days prior to the closing; however, if the data is not accurate, costly and frustrating delays remain inevitable. In the worst cases, legal repercussions may occur as a result of inaccurate data on closing forms, which is often simply the result of human error. Electronic processes and the use of automated documents significantly reduce these types of errors – not to mention, enable lenders to complete forms more quickly. Accuracy of data is intended to mitigate risk for lenders and to eliminate any surprises at the closing.

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Electronic documents are much more than PDFs emailed back and forth, but rather intelligent documents that further protect lenders by facilitating clear timestamps to show who did what, and when they did it. What makes these documents “intelligent” is that the source XML data that is used to generate the document can be embedded within the document. This is important as it can be used later to be re-verified for compliance or electronically boarded to other systems eliminating the need to scan them, and have Optical Character Recognition (OCR) to extract data or re-key information. Having this type of automation enables lenders to reconcile that data between initial disclosure and final closing disclosure, making sure that the Good Faith Estimate (GFE), Truth in Lending (TIL) and APR are within the tolerance thresholds. Electronically performing this process is imperative for lenders; without accurate data, the chance that the closing cost will match the initial GFE is much less, causing delays in closing, incur fees and experience many other penalties.

Many documents require signatures from multiple parties, which means they are passed through a number of hands, making it easy for a mistake to occur. Automation and electronic workflows prevent common human errors like losing pages or missing a signature, and also provide lenders more visibility – they can simply log into a system to see status updates of all activities for every transaction, bringing more accountability to their businesses. Automated documents mean an automated paper trail, which is critical to lenders to prove they followed compliance.

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A primary objective for the CFPB with the eClosing pilot is to evaluate ways to promote better consumer understanding of the mortgage process and the countless documents involved. Even for the savviest borrower – receiving a stack of paper documents with the expectation to review and comprehend its contents is a tall order. In addition to electronic processes in general, the pilot is experimenting with new methods to help borrowers gain a stronger understanding before they reach the final closing. For instance, can interactive links throughout the electronic forms offer guidance and education? Would borrowers be receptive to summaries, term definitions and process explanations within electronic documents? How about correlating videos?

Evaluating these tech-focused options is how the CFPB is aiming to protect consumers and create a smoother process for the consumer and lender alike. In addition to contributing to enhancing borrower comprehension, electronic documents make it possible for consumers to receive documents from the lender faster, and therefore, have more time to review them earlier than they otherwise could if being mailed the paperwork. This could mean that by the time the closing rolls around, consumers could have already read and even signed up to 85 percent of the documents – and better understand what they are signing, rather than feeling rushed to sign documents they do not fully comprehend at the closing table.

It is widely acknowledged that fraud is a growing problem for the entire financial services industry. The mortgage lending process is particularly at risk, as documents carry copious amounts of consumers’ sensitive financial data. An electronic closing process will help to make transactions more efficient, while simultaneously making them more secure and mitigating a number of risks, from repudiation risk to other types of fraud. Paper documents can easily be misplaced and wet signatures are much easier than electronic signatures to forge. Automated technology hinders fraudsters’ ability to tamper with documents, as well as requires levels of authentication for users that simply are not possible to enforce with paper.

As financial institutions continue to deal with lawsuits – some up to a billion dollars – from the robosigning that occurred, the need for more standardized and automated processes is underlined. Compliance requirements combined with the adoption of electronic processes – complete with time and date stamps and audit trails – will prevent unauthorized individuals from illegally executing or notarizing closing forms. Furthermore, a full, electronic process that captures proper authentication of the borrower executing the closing forms will help to document compliance with mortgage lending laws while mitigating risk during the mortgage origination process.

Although the closing is just one part of the mortgage process, the results from this pilot program will potentially demonstrate how electronic processes can benefit the entire mortgage transaction. There are hopes that the outcomes of this pilot could propel us toward fully electronic mortgage processes in the near future. The technology is there. The need is there. As is the desire from both sides – industry professionals and consumers. With the amount of time all mortgage companies have invested in updating their processes, policies and technology to accommodate the changing landscape, the establishment of a true e-mortgage, used across the board, would certainly prove a win-win for everyone.

About The Author

[author_bio]

The Day Is Finally Here

You Can Download This Entire Article As A PDF HERE

TME-TAndersonOn Wednesday, April 8 I received an official invitation to attend the CFPB hosted panel discussion on looking at better ways to improve the closing process at CFPB’s HQ office in DC.  As I was sitting listening to all the government agencies sign-on in support of this initiative, I was having a sort of surreal out of body experience. It was June 28, 2002 when FannieMae published bulletin 02-08 announcing they would now begin purchasing this thing called SMART Doc eNotes. It was then that I became a bonifide convert and believer that this was going to revolutionize the way we do business and went in search of a doc company to develop and offer the solution.

What I didn’t know at that time was just how long this was going to take. During the meeting, Ann Epstein, Director of Change Management at Freddie Mac jokingly quipped, “eMortgage adoption has only been three to five years away for some time now” which was an insider joke since that line has been used and quoted so many times over the years. The real joke being we just didn’t know which three- to five-year period this actually was going to become a reality. Well, after twelve years of talking and promoting this, last Wednesday was the culmination of what I thought at times was a singular effort to evangelize and educate people on a better way to do business. I oftentimes felt like Don Quixote casting stones at windmills. As I expressed my joy to some of the other “old timers” who were in the room and drank the cool-aid early, “I’m just happy to be around to see it finally happen!”

No More Excuses

As with any new change or innovation there will always be foot draggers, naysayers and skeptics but with the new Integrated Disclosure reg effective August 1, 2015 there really is no longer a choice. I just don’t see how any lender can meet these new requirements and be in compliance of notifying and tracking acceptance by borrowers by maintaining old paper based processes and files to prove compliance.

If you look at the result of the numerous lawsuits on the servicing side culminating in the $25 Billion National Mortgage Settlement, (this was just one of many) it wasn’t just because of the infamous “robo-signing” (which eNotary would eliminate) but it highlighted the inherent problem with using paper files to document defense of replicating a transaction that occurred years before. They were missing signatures, key disclosure and note documents, sometimes they had multiple versions, incomplete or incorrect filings and the list goes on and on.

Supporting A True Electronic Process

From the ability to provide a full electronic (date & time stamp) audit trail of who, what, why and when everything occurred on the loan from application to closing and beyond, to the ability to associate and authenticate virtually ALL parties in the transaction and control who does what in the signing and review process, with “e” the entire process is more transparent, compliant and secure. The added benefit of retaining the electronic evidence for ALL parties to show “proof” of compliance is just icing on the cake.

From that day in 2002 I was bitten by the eMortgage bug and in the words of famed prophet and visionary Homer Simpson, I say to you now: “What took you so long?”

About The Author

[author_bio]

The Day Is Finally Here

On Wednesday, April 8 I received an official invitation to attend the CFPB hosted panel discussion on looking at better ways to improve the closing process at CFPB’s HQ office in DC.  As I was sitting listening to all the government agencies sign-on in support of this initiative, I was having a sort of surreal out of body experience. It was June 28, 2002 when FannieMae published bulletin 02-08 announcing they would now begin purchasing this thing called SMART Doc eNotes. It was then that I became a bonifide convert and believer that this was going to revolutionize the way we do business and went in search of a doc company to develop and offer the solution.

What I didn’t know at that time was just how long this was going to take. During the meeting, Ann Epstein, Director of Change Management at Freddie Mac jokingly quipped, “eMortgage adoption has only been three to five years away for some time now” which was an insider joke since that line has been used and quoted so many times over the years. The real joke being we just didn’t know which three- to five-year period this actually was going to become a reality. Well, after twelve years of talking and promoting this, last Wednesday was the culmination of what I thought at times was a singular effort to evangelize and educate people on a better way to do business. I oftentimes felt like Don Quixote casting stones at windmills. As I expressed my joy to some of the other “old timers” who were in the room and drank the cool-aid early, “I’m just happy to be around to see it finally happen!”

No More Excuses

As with any new change or innovation there will always be foot draggers, naysayers and skeptics but with the new Integrated Disclosure reg effective August 1, 2015 there really is no longer a choice. I just don’t see how any lender can meet these new requirements and be in compliance of notifying and tracking acceptance by borrowers by maintaining old paper based processes and files to prove compliance.

If you look at the result of the numerous lawsuits on the servicing side culminating in the $25 Billion National Mortgage Settlement, (this was just one of many) it wasn’t just because of the infamous “robo-signing” (which eNotary would eliminate) but it highlighted the inherent problem with using paper files to document defense of replicating a transaction that occurred years before. They were missing signatures, key disclosure and note documents, sometimes they had multiple versions, incomplete or incorrect filings and the list goes on and on.

Supporting A True Electronic Process

From the ability to provide a full electronic (date & time stamp) audit trail of who, what, why and when everything occurred on the loan from application to closing and beyond, to the ability to associate and authenticate virtually ALL parties in the transaction and control who does what in the signing and review process, with “e” the entire process is more transparent, compliant and secure. The added benefit of retaining the electronic evidence for ALL parties to show “proof” of compliance is just icing on the cake.

From that day in 2002 I was bitten by the eMortgage bug and in the words of famed prophet and visionary Homer Simpson, I say to you now: “What took you so long?”

About The Author

[author_bio]

I Have Lived To See The Day

On Wednesday, April 8 I received an official invitation to attend the CFPB hosted panel discussion on looking at better ways to improve the closing process at CFPB’s HQ office in DC.  As I was sitting listening to all the government agencies sign-on in support of this initiative, I was having a sort of surreal out of body experience. It was June 28, 2002 when FannieMae published bulletin 02-08 announcing they would now begin purchasing this thing called SMART Doc eNotes. It was then that I became a bonifide convert and believer that this was going to revolutionize the way we do business and went in search of a doc company to develop and offer the solution.

What I didn’t know at that time was just how long this was going to take. During the meeting, Ann Epstein, Director of Change Management at Freddie Mac jokingly quipped, “eMortgage adoption has only been three to five years away for some time now” which was an insider joke since that line has been used and quoted so many times over the years. The real joke being we just didn’t know which three- to five-year period this actually was going to become a reality. Well, after twelve years of talking and promoting this, last Wednesday was the culmination of what I thought at times was a singular effort to evangelize and educate people on a better way to do business. I oftentimes felt like Don Quixote casting stones at windmills. As I expressed my joy to some of the other “old timers” who were in the room and drank the cool-aid early, “I’m just happy to be around to see it finally happen!”

No More Excuses

As with any new change or innovation there will always be foot draggers, naysayers and skeptics but with the new Integrated Disclosure reg effective August 1, 2015 there really is no longer a choice. I just don’t see how any lender can meet these new requirements and be in compliance of notifying and tracking acceptance by borrowers by maintaining old paper based processes and files to prove compliance.

If you look at the result of the numerous lawsuits on the servicing side culminating in the $25 Billion National Mortgage Settlement, (this was just one of many) it wasn’t just because of the infamous “robo-signing” (which eNotary would eliminate) but it highlighted the inherent problem with using paper files to document defense of replicating a transaction that occurred years before. They were missing signatures, key disclosure and note documents, sometimes they had multiple versions, incomplete or incorrect filings and the list goes on and on.

Supporting A True Electronic Process

From the ability to provide a full electronic (date & time stamp) audit trail of who, what, why and when everything occurred on the loan from application to closing and beyond, to the ability to associate and authenticate virtually ALL parties in the transaction and control who does what in the signing and review process, with “e” the entire process is more transparent, compliant and secure. The added benefit of retaining the electronic evidence for ALL parties to show “proof” of compliance is just icing on the cake.

From that day in 2002 I was bitten by the eMortgage bug and in the words of famed prophet and visionary Homer Simpson, I say to you now: “What took you so long?”

About The Author

[author_bio]

The FHA Has Some Fans

When I reported that FHA was open to broader electronic signature usage last week, it was a fun article to write. Many people have been advocating on behalf of broader e-signature usage. The FHA announcement will strengthen their case. Here’s what a long time e-signature advocate had to say about this news:

“FHA has now given the industry its guidelines for electronically signed documents for closing and servicing and the industry can now do away with every paper document but the Note, once and for all,” said Tim Anderson, director of eServices for DocMagic. “There are no legitimate reasons why the mortgage industry cannot begin originating complete, paperless e-mortgages today. It’s really just an education and implementation issue now, because consumers are expecting and demanding it.”

Fourteen years after the federal government passed the ESIGN Act, allowing for the transaction of business electronically, the IRS, VA and FHA have now all produced their guidelines for the acceptance of electronic signatures. FHA told lenders last week that electronic signatures will be accepted on all documents requiring signatures included in the case binder for mortgage insurance except the Note. As of December 31, 2014, FHA will also accept electronic signatures on the mortgage Note for forward mortgages only.

There are a number of other factors that are also driving lenders toward the e-mortgage. According to the Property Records Industry Association, over 1,056 counties now support e-recording, which represents over 65% of total loan filings nationwide. New federal regulations, such as the QM & ATR rules, require the lender to show proof of compliance if audited, which is more easily accomplished with an electronic loan audit record. Finally, the CFPB’s new disclosure announcement will require lenders to provide the borrower with the opportunity to review the new final closing disclosure three days prior to closing, which is much easier to accomplish if all of the documents are already electronic.

Additionally, new ECOA appraisal rules now require lenders to provide a copy of any appraisal to the borrower promptly upon completion or three days prior to consummation, whichever is earlier. It is going to be very hard for lenders to meet these new disclosure requirements in a paper-based process world.

Let’s hope that lenders get the picture.

About The Author

[author_bio]

Why Are We Paying Extra?

*Why Are We Paying Extra?*
**By Tim Anderson**

TimAnderson***New CFPB rules have been a boon to the many compliance providers to the mortgage lending industry. Every time a new rule comes out, lenders need some way of ensuring that their systems are compliant. Of course, no one wants to shut everything down and re-tool their shop every time something changes. And so compliance shops benefit. Is this good for our industry? Here’s my take:

****I don’t have a particular problem with this. As many of you know, I’ve worked for technology and compliance service providers to this industry for a long time. As long as they’re adding real value to the lender or servicer, they’re entitled to benefit. But there seems to be a perception in the industry that data compliance can be separated from mortgage documents. Even in an all-electronic world that’s not true.

****Should the industry pay more whenever a compliance firm decides to charge extra for running another rule or audit?

****If compliance and loan quality are the biggest industry concerns — as we know they are — then the doc prep guys are directly in the “critical path” to ensure loan data and document quality and integrity. Right before the lender draws legal docs is the perfect time to do all of the final compliance and tolerance checks; GFE/TIL comparisons are done and that data is embedded, along with a complete audit trail with date and time stamps as electronic evidence of what was verified just seconds before the final docs were delivered.

****It makes sense because refusing to print the docs until everything is compliant is the first, best way to ensure that a non-compliant deal doesn’t get done. This is happening today and it’s a beautiful thing. But how should these companies charge for all of that?

****In the early days of doc prep, everything the service bureau did for the bank cost them something extra. It was a different job, for all practical purposes. If you needed a new document in the package, you paid extra for that. Complex deals cost more because it was harder for your document provider to pull it together. Those days are over.

****Today, we have elaborate technologies that allow us to pull together a set of closing docs in a fraction of a second — and then add all of your disclosures to the package for you with the time left in that first second. Our business rules engines are exhaustive and they’re backed up by compliance attorneys who work on this stuff every day. And then wrap it with a legal compliance rep and warrant on top of that. So why should you pay more to test for compliance with separate systems at different times that don’t even update the docs?

****And yet, that’s what we keep seeing: companies that provide a partial solution who are charging more every time they add another critical piece to the compliance puzzle. It should come with the docs and at no extra charge.

Market Analysis: Tim Anderson Looks To Shake Things Up

*Tim Anderson Looks To Shake Things Up*
**By Tony Garritano**

***I am very proud to call Tim Anderson a friend. When I started in this industry as a little pup, he helped me. He took me under his care and showed me the lay of the land. I am very grateful for all the time and effort that he put into guiding me so that I could really understand the space. His friendship is invaluable to me. So, when he told me that he was no longer at LPS I was eager find out where he went and what he would do next. I can tell you, based on my talk with him, Tim Anderson is ready to shake up this space like only he can. Here’s the scoop:

****ISGN Corporation, a provider of end-to-end technology solutions and services to the U.S. mortgage industry, has named Tim Anderson director of corporate technology strategy. Anderson brings more than 30 years of mortgage industry and technology experience to ISGN, where he’ll develop a strategic roadmap for ISGN’s delivery of products, services and technology, helping position the company as the leading driver of solutions in the mortgage marketplace.

****When ISGN started it made a lot of high-profile acquisitions of companies like MortgageHub, Dynatek, London Bridge and others. However, recently we haven’t heard too much from ISGN. Tim Anderson explains, “The company has been laying low. They have a much fuller offering in terms of technology and outsourcing services as compare to our competition. We at ISGN want to address any pain points that our clients have. For example, the client may want to automate underwriting so we can start there and stretch out as they need us to fill future gasps. Some companies are offering technology or outsourcing, but we do both. I’ve been tasked to look at their technology here at ISGN and plan for the future in terms of automating the mortgage process. I will be incorporating technology strategy into their outsource offerings.”

****Anderson has been involved in all facets of the mortgage industry during his career, most recently on the technology side where he helped to develop one of the first e-mortgage platforms, and e-signature and e-vaulting technologies. At ISGN, Anderson will lead efforts to define the company’s technology strategy, enabling ISGN to create next generation products and services that take advantage of evolving web-based cloud technology.

****So, given his long tenure in our space, I asked my friend Tim what his true vision for the future of the mortgage space really was. He said, “The market has changed. The big guys have gone internal to defend themselves against lawsuits on the servicing side. So, I think there will be new entrants that come in with a new approach. These new players will not be mired down with legacy technologies. We’ll also see old players attack the market place with a new approach. ISGN is actively looking to partner with these players to streamline this market.

****“We want to eliminate manual touch points, increase loan quality and maintain compliance,” Anderson stressed. “You have to quit attaching the process piecemeal. We’ve got to move the orchestration of the mortgage process to the cloud. You need to call needed systems through the cloud to perform necessary functions and workflow. Dynatek had a comprehensive plug-in network that we will utilize, but our cloud approach will also interface to other systems through our cloud approach.”

****Anderson sees a more on-demand environment where the client calls the shots, not the LOS. “The client can determine the user interface that they want and we can orchestrate all that for them. It will be a shared and common system. It’ll all be about execution and how we deliver for our clients. The standard outsourcing service level agreements are based on metrics and performance. We will apply that same philosophy to technology. The only way to execute and scale is to automate. In a people-based process you’re only as good as the last person in that role, but there is always turnover. The way to fix that is to automate. There will always be competition for the best producers so you will never have 100% of those good producers 100% of the time. If you can automate and replicate that process you will be much better off, especially when you get audited.”

****Prior to joining ISGN, Anderson served as senior vice president of Lender Processing Services (LPS), and before that as president of SigniaDocs, Inc., where he was involved in the development of e-commerce mortgage products and services. Previously he was vice president of eMortgage services with Stewart Transaction Solutions. As a leader in the evolution of technology in the mortgage arena, Anderson also founded eMortgage Alliance, which supports MISMO open standards for compliant paperless processes for mortgages.

****Now Anderson has to take things even further. He is tasked with reshaping the technology strategy of a large company and aligning that company to fit the present and future needs of lenders. “Nobody can build that silver bullet,” noted Anderson. “You can’t have that one system that does everything, but that’s where the cloud comes in. We can create a cloud-based system of record that standardizes the data, the systems and the process. ISGN is in a unique position to build that new process. The other benefit to working with and being involved with ISGN is that they are not saddled with the old legacy mindset.”

****But industry vets like Dave Demster, Bill Adamowski, Jack Luhtanen and others have led ISGN’s mortgage strategy in the past with limited success. So, I asked Tim why he will be different. “A lot of those guys came from acquisitions,” Anderson answered. “We acquired their companies and brought them in. The problem is that we bought their baby and they were attached to their baby. I don’t come to ISGN through an acquisition. I’m open to new ideas and so is ISGN as a company. I’m not trying to sell a product per se, I’m about creating a long-term relationship and giving the lender what they need now and stretching out from there to automate more and more for the client when they’re ready. I want to build deep relationships with our clients and do what they need. We are not just a technology company or just an outsourcing company, we’re both.

****“ISGN will be bringing in more senior people like me who can develop an implementation process to eliminate pain processes for our clients. I’m happy to be on board a company that has taken the right approach at the right time. We don’t want to be a me too. There are too many people trying to cut price just to stay in the game. We don’t want to be a me too like that, we want to re-shape the mortgage space.”

****Well, if anyone can do it, my friend Tim Anderson can. I’ll be sure to keep you informed about his progress and all the news at ISGN as it unfolds.