First American Client Relations Industry View: June 2007 Archives

« May 2007 | Main | July 2007 »

June 29, 2007

Housing Starts May 07

Posted by S. Germain at 08:45 AM | Comments (0)

The First American Corporation Announces the Future Retirement of Craig I. DeRoy

The First American Corporation reported that Craig I. DeRoy has announced that he will retire effective Dec. 31, 2007. DeRoy, who joined First American in 1993, and has served as president of the company since 2004, has indicated that he plans to spend more time on philanthropic and other endeavors. During DeRoy’s time with the company, First American’s revenues grew from $1.4 billion in 1993 to $8.5 billion in 2006.

DeRoy will continue to work with the company under a five-year, part-time consulting agreement entered into with the company in connection with his retirement. First American has no current intention to appoint a new president to replace DeRoy.

Posted by S. Germain at 08:39 AM | Comments (0)

Fidelity National Information Services Acquires Applied Financial Technology

Fidelity National Information Services, Inc. (NYSE: FIS - News), announced today that it has acquired Applied Financial Technology (AFT), one of the fastest-growing providers of intelligent and predictive risk analytics, analysis and data for the mortgage industry. AFT's quantitative analytics, which can be fully integrated into a variety of third-party systems, are used by brokers, banks and investors to price, fund, trade and hedge mortgages and mortgage-backed securities.

Posted by S. Germain at 08:34 AM | Comments (0)

Fidelity National to Purchase EFunds for $1.8 Billion

Fidelity National Information Services, Inc. and EFD/eFunds Corporation announced that they have entered into a definitive agreement whereby FIS will acquire EFD in an all-cash transaction valued at approximately $1.8 billion.

EFD is a leading provider of risk management, electronic funds transfer (EFT) services, prepaid card processing, and global outsourcing solutions to more than 10,000 financial services companies in more than 80 countries. The company also provides point-of-sale fraud prevention solutions to retailers and electronic benefits processing services to government entities.

Posted by S. Germain at 08:29 AM | Comments (0)

Fidelity National Title Group Announces New Program to Curb Mortgage Fraud

Fidelity National Title Group today announced a new product offering that will help its customers protect against mortgage fraud. The new partnership with Experian Consumer Direct(SM) will offer customers one year of credit monitoring, fraud resolution assistance and a credit report at no cost.

Fidelity National Title Group's offering is the first of its kind in the title insurance industry, providing customers with daily monitoring of their Experian credit report, a comprehensive Experian credit report delivered online and e-mail alert notifications to inform them of key changes to their Experian credit report including new inquiries, newly opened accounts, delinquencies, address change and public record items. Toll-free support from fraud resolution representatives and educational information also are included in the year-long credit monitoring membership.

Posted by S. Germain at 08:28 AM | Comments (0)

LandAmerica Announces Dates for Second Quarter 2007 Results & Conference Call

LandAmerica Financial Group, Inc. announces that it will release its preliminary operating results for the second quarter after the market closes on Tuesday, July 31, 2007. Additionally, the company will sponsor a conference call on Wednesday, August 1, 2007, at 10:00 AM ET to discuss the preliminary results.

Posted by S. Germain at 08:27 AM | Comments (0)

Integrated Asset Services Launches i-Series(TM)

Integrated Asset Services (IAS), a leading provider of residential asset management, today announced i-Series, a nationwide due diligence platform. IAS's i-Series features the Company's professional valuation services provided through their national network of licensed brokers and appraisers combined with its new iAVM(TM) and iMVI(TM) technology.

Posted by S. Germain at 08:24 AM | Comments (0)

Credit Systems Design Helps Raise Credit Scores by Adding Access to Credit Analysis Tool Deal Maker Score

In a move to provide their affiliated credit reporting agencies (CRAs) tools to help borrowers raise their credit scores, Credit Systems Design (CSD) has announced its decision to make the credit analysis solution Deal Maker Score available to its broad base of credit reporting company clients.

CSD's affiliated credit reporting agencies service the mortgage industry's lenders and brokers on CSD's UltraAMPS mortgage processing system. By providing access to Deal Maker Score, CSD is making it easy for mortgage originators to show borrowers how they can raise their credit scores to a target score.

Posted by S. Germain at 08:22 AM | Comments (0)

FICS Enhances Performance for Mortgage Servicer

Financial Industry Computer Systems announced that it has undergone an optimization of its residential mortgage loan servicing system, Mortgage Servicer(TM), to improve the runtime of its system and allow for increased productivity by its users.

By increasing the performance of Mortgage Servicer, FICS is providing customers with a system that enables users to reduce the amount of time it takes to execute programs, especially larger batch programs, within the servicing solution. Routine tasks are completed quicker, results are analyzed sooner, loans are serviced more efficiently and reporting to borrowers and investors occurs more promptly. These improvements further ease the stress associated with today's industry demands.

Posted by S. Germain at 08:20 AM | Comments (0)

a la mode Now Offering Free Mortgage Websites

a la mode announced the release of free 'Originator' level Mortgage XSites at the National Association of Mortgage Brokers annual convention here.

'Originator' level Mortgage XSites are powerful, flexible, attractive loan originator websites including such robust features as a sleek, user-friendly online loan application, the user's own dot-com domain name and virus- and spam-fighting dedicated e-mail.

Posted by S. Germain at 08:19 AM | Comments (0)

New Homes Realty Partners with Metrocities Mortgage, Launches New Homes Central Lending Services

New Homes Realty, Inc., a full-service online real estate company and the largest buyer's agency in the U.S., and Metrocities Mortgage, LLC, a leader in the residential mortgage lending market, announce the formation of New Homes Central Lending Services, a joint venture full service mortgage company offering a multitude of residential mortgage lending services.

Posted by S. Germain at 08:13 AM | Comments (0)

RealEC Passes 31 Million Mark

RealEC Technologies Inc., Santa Ana, Calif., has announced that its business-to-business exchange has surpassed 31 million orders processed since its 1998 launch. The company also announced it has surpassed 2,000 participating lenders (including 17 of the top 20). On a monthly basis, the RealEC Collaborative Partner Network now processes more than 300,000 loans, 600,000 orders, 2 million documents, and 7 million "unique loan fulfillment events."

Posted by S. Germain at 08:06 AM | Comments (0)

WKFS Launches E-Docs for Reverses

In response to growing demand for reverse mortgages, Wolters Kluwer Financial Services, Minneapolis, is equipping lenders with a new line of electronic documents they can use to help comply with regulatory requirements tied to Home Equity Conversion Mortgages. A HECM, the most common form of reverse mortgage in the United States, allows borrowers aged 62 or older to convert the equity in their homes into income through a lump sum, monthly payments, or a line of credit offered by lenders. The WKFS line of electronic upfront disclosures and closing documents for HECMs allows lenders doing business in the top 10 states underwriting HECMs to create compliant document packages.

Posted by S. Germain at 08:03 AM | Comments (0)

Former GMS Exec Forms Outsourcing Firm

Former Guardian Mortgage Services executive Mary Kladde has gone out on her own to form Titan Lenders Corp., a closing, post-closing, and mortgage fulfillment services provider based in Denver. Titan services will act as a variable-cost alternative for mortgage bankers, brokers, and investors to increase their loan-closing capacity while reducing risk, errors, and overhead costs, the company said. Titan offers an established service model, extensive industry experience, and customized solutions automated by Cerberyx, a contemporary Web-based technology platform designed specifically for its processes, according to the company.

Posted by S. Germain at 08:02 AM | Comments (0)

Centerbridge to Buy Green Tree

Green Tree Servicing, St. Paul, Minn., has announced an agreement to be acquired by an investor group led by Centerbridge Partners LP and its affiliates. The terms of the agreement were not disclosed. The investor group, and the existing management, are buying 100% of Green Tree's equity from funds managed by affiliates of Fortress Investment Group and from affiliates of Cerberus Capital Management. Green Tree said it expects to use the investment to increase its loan servicing volume, develop new business initiatives, and expand its operations.

Posted by S. Germain at 08:01 AM | Comments (0)

Mass., Mortgage Lenders Meet on Foreclosure Crisis

Massachusetts housing officials recently held the first of several planned meetings with nine mortgage lenders to talk about how they can work together to help residents avoid foreclosure. Executives from Washington Mutual, Wells Fargo, Option One Mortgage, JPMorgan Chase, HSBC Finance, Countrywide Financial, CitiBank, Bank of New York and GMAC Residential Capital were in attendance.

Posted by S. Germain at 07:58 AM | Comments (0)

Fewer FHA-Backed Loans Foreclose

The loss-mitigation program of the Federal Housing Administration is the main reason why people with FHA-insured loans have been able to hold onto their homes, HUD official Brian D. Montgomery said. Montgomery noted that HUD had 247 FHA-insured mortgages foreclosed in Colorado in its portfolio in May, compared to more than 15,000 foreclosed homes in the late 1980s.

Posted by S. Germain at 07:55 AM | Comments (0)

ABA, ACB Announce Intent to Merger

The American Bankers Association and America’s Community Bankers announced yesterday that they intend to merge into one organization this fall.

Posted by S. Germain at 07:54 AM | Comments (0)

Guaranty Title Under Investigation

An investigation into whether Missouri-based Guaranty Title Co. misappropriated funds has been launched by LandAmerica Financial Group, Guaranty's sole underwriter. LandAmerica is now examining the title company's books, with the audit expected to wrap up soon. A misappropriation occurs when money in an escrow fund is used for either personal purposes or business operations. The state's Department of Insurance will take action based on the audit's conclusions, which could lead to Guaranty's license being suspended or even revoked.

Posted by S. Germain at 07:54 AM | Comments (0)

Sales of Existing Homes Fall to Lowest Level in 4 Years

The National Association of Realtors reports that sales of existing homes dipped 0.3 percent to 5.99 million units last month, the slowest sales pace since June 2003. Meanwhile, the median price of a residence sold during May fell 2.1 percent from a year earlier to $223,700, the 10th consecutive year-to-year price decline. NAR officials note that the sales decline reflected weakness in the West and South, where sales were down 0.8 percent and 3.4 percent, respectively. On the positive side, May home sales rose 0.7 percent in the Midwest and a solid 5.8 percent in the Northeast. Overall, though, the inventory of unsold single-family homes and condominiums increased 5 percent during the month to 4.43 million units--the highest supply in 15 years.

Posted by S. Germain at 07:53 AM | Comments (0)

Change in Credit-Score Process to Have Impact

Fair Isaac Corp. will change its FICO credit-scoring system in September, which could cause some consumers to see dramatic increases or declines in their credit ratings. Fair Isaac spokesman Chris Watts says there presently are 10 population segments with different formulas--eight for consumers with good credit and two for consumers with problem credit--but the changes will increase the number of segments to 12, adding two segments for people with poor credit. According to Watts, "This new system will give lenders more dependable scores for those higher-risk consumers and those who have little history."

Posted by S. Germain at 07:49 AM | Comments (0)

June 22, 2007

Posted by S. Germain at 11:25 AM | Comments (0)

LandAmerica Announces Dates for Second Quarter 2007 Results & Conference Call

Those wishing to participate in the live call should dial 1-877-407-0782 and request to be connected to the LandAmerica conference. Additionally, the call will be simultaneously broadcast over the internet via LandAmerica's website (http://www.landam.com/). Click Investor Information > Financial Information > Webcast events. Investors can also access the webcast at http://www.investorcalendar.com/. The event will be archived and available for replay starting two hours after the completion of the live call through September 1, 2007.

Posted by S. Germain at 11:21 AM | Comments (0)

DocuTech and PCLender.com Form Strategic Alliance, Streamline Mortgage Documents Processing

DocuTech Corp., a leading provider of compliant mortgage documents and services, announced today its strategic alliance with Honolulu-based PCLender.com, a web based software and service solution. The alliance integrates DocuTech's compliant documents with the PCLender.com enterprise mortgage lending system.

Posted by S. Germain at 11:16 AM | Comments (0)

Canadian Bar Association Selects Emergis as Preferred Supplier of Electronic Mortgage Processing Services

Emergis Inc. (TSX: EME) today announced that it has concluded an agreement to become the exclusive preferred supplier of electronic mortgage processing services to the Canadian Bar Association (CBA). According to the five-year Canada-wide agreement, CBA members who handle real estate transactions will be offered favourable pricing on Emergis' Assyst Real Estate solution as it is launched in each province across Canada. The CBA represents some 37,000 lawyers, judges, law teachers, and law students from across Canada.

Posted by S. Germain at 11:15 AM | Comments (0)

DaVinci, a Revolutionary Field Data Gathering and Sketching Application For Appraisers Debuts

a la mode launched a revolutionary prototype of a new appraisal inspection data gathering and analysis application -- with built in area sketcher -- at its Annual Convention here.

Dubbed DaVinci, the new software is the first prototype released by a la mode labs, a research and development "idea farm" whose mission is to bring the best new big ideas to life for the nation's real estate appraisers. A DaVinci CD was distributed to some 1,000 convention attendees with a secret "unlock" password they learned at the event's opening session.

Posted by S. Germain at 11:13 AM | Comments (0)

Fifth Third Bank Chooses Fiserv to Image-Enable Mortgage Loan Origination and Processing

Fiserv Imagesoft, a business unit of Fiserv, Inc. today announced that Fifth Third Bank, with $99.8 billion in assets, has chosen to image-enable its mortgage processing functions -- from loan origination to servicing -- with the Fiserv Imagesoft Nautilus Enterprise Content Management (ECM) system.

Posted by S. Germain at 11:12 AM | Comments (0)

Kroll Factual Data's Flood Certification and Identity Verification Services Now Available through Innovative Software Solutions' Platform

Kroll Factual Data, a leading national provider of customized mortgage screening services, and Innovative Software Solutions (ISS), a consumer reporting technology provider, today announced an agreement to integrate Kroll Factual Data's flood certification and TruAlert identity verification services with ISS's platform.

Posted by S. Germain at 11:11 AM | Comments (0)

Chase to Expand Subprime Bulk Program

Chase has announced plans to expand its subprime bulk program later this year to include a flow process and has hired mortgage banker Rick Boyd to manage the new flow effort. Mr. Boyd has been named subprime flow manager at the company as part of its correspondent lending division, responsible for all program coordination, including risk and capital markets, operations, sales, and marketing. Chase originates $170 billion in residential mortgages and home equity annually -- including nearly $100 billion through the wholesale, correspondent, and correspondent-negotiated channels -- and services a portfolio of more than $500 billion.

Posted by S. Germain at 11:06 AM | Comments (0)

Ellie Mae Updates Encompass

Dublin, Calif.-based Ellie Mae has released Encompass 3.0, an upgrade of its Encompass Mortgage Management Solution that enables two-way communication with borrowers and vendors, handles more loan programs, and integrates with more third-party technology. In addition, Ellie Mae said the product is now fully integrated with Encompass WebCenter, a tool that provides users with a scalable and search-engine-friendly website and a secure online business center that originators can use to generate leads and to communicate and collaborate with borrowers and partners.

Posted by S. Germain at 11:03 AM | Comments (0)

H&R Block Reports $434 Million Loss Due to Irvine Unit

Option One Mortgage Corp. was largely responsible for the $434 million loss in fiscal 2007 for parent H&R Block Inc., which is set to sell the troubled Irvine, Calif.-based subprime lender to Cerberus Capital Management in October. For the fourth quarter, H&R said it lost $677 million from "discontinued operations," mostly from Option One, and added that the figure includes costs tied to the sale. The company has had to write down Option One assets to reflect rising subprime mortgage loan delinquencies, which the Mortgage Bankers Association reports are up 13.77 percent over the first three months of the year; set aside more reserves for the past due loans; and readjust as investors pay less for bonds backed by subprime mortgage loans. A year ago, H&R gained $490 million.

Posted by S. Germain at 11:02 AM | Comments (0)

Servicers Seek Nonprofits' Help as Go-Between

In response to a Freddie Mac study revealing that 50 percent of borrowers in foreclosure in 2005 failed to contact their lenders to discuss workout options, the nonprofit Neighborhood Reinvestment Corp. and the Homeownership Preservation Foundation have created English and Spanish television and radio ads encouraging cash-strapped borrowers to phone a toll-free number for help. Servicers believe nonprofit, third-party counselors are better able to get the information they need to help borrowers restructure their loans before problems occur. Colorado Division of Housing director Kathi Williams says, "We are convinced that when a market starts to go into the toilet, the sooner you can intervene in the situation, the better. And it's very difficult for lenders to be able to get that early intervention going, when a neutral third party can do a much better job of that." Washington Mutual Inc., meanwhile, says it is using phone calls and direct mail to reach upwards of 15,000 subprime borrowers six months prior to their interest-rate adjustments, letting them know that forbearance and other loss mitigation tools are available.

Posted by S. Germain at 11:01 AM | Comments (0)

Home Inspectors Must Now Be Licensed

Maryland has found enough money to fully fund a home inspector licensing program, enabling the state to launch the program this past April--six years after the General Assembly voted to strengthen regulation of the profession. The initiative requires all home inspectors in the state to be licensed by next year, an effort that entails 48 hours of an onsite training course but not an examination at this time; those who fail to do so face criminal charges of up to one year in jail and a $5,000 penalty. The program is designed to protect home buyers and residential inspectors, says Elwood Mosley, executive director of the state Real Estate Appraiser and Home Inspector Commission--which will offer a service that will enable prospective home buyers to search for licensed professionals in the state. Maryland Association of Realtors President Ilene Kessler supports the licensing initiative but is uncertain how it will impact the industry.

Posted by S. Germain at 11:00 AM | Comments (0)

Study: Conditions Ripe for Further Increase in Fraud

A recent study conducted by Mortgage Asset Research Institute Inc. on behalf of the Mortgage Bankers Association reveals a 30-percent jump in mortgage fraud cases in 2006, and study co-author D. James Croft expects the current problems in the subprime market to increase fraudulent activity. Florida had the highest score on the MARI Fraud Index, followed by California, Michigan and Georgia; but Croft insists the number of cases in Florida and Georgia "are not as high as we have seen in the past." The report attributes a drop in new fraud cases in Georgia to the state's Residential Mortgage Fraud Act--which puts first-time offenders in jail for as many as 20 years--and notes that lawmakers in New Jersey, Oklahoma, Florida, Nevada, Colorado and other states are pondering similar measures.

Posted by S. Germain at 10:59 AM | Comments (0)

Commercial Real Estate Hits Record

The first four months of 2007 was a record period for U.S. commercial real estate, as investment in the sector rose 62 percent from a year ago to $157 billion, the National Association of Realtors reported. While office deals accounted for much of the total at $95 billion, transactions involving apartment buildings declined 25 percent to $23.2 billion. Private investors had a hand in about half of the multifamily purchases, and only 5 percent of the acquisitions were condominium conversions. NAR senior economist Scott MacIntosh predicted the brisk pace of commercial real estate deals will continue for the rest of the year and that the total will surpass the record $306.8 billion in transactions that was reached in 2006.

Posted by S. Germain at 10:56 AM | Comments (0)

Fair Isaac to Pull the Plug on FICO Score Boosting Schemes for Mortgages

Fair Isaac Corp. says it will no longer take "authorized user" accounts into consideration when computing FICO scores, starting in September. The move to update the FICO scoring model comes as federal and state regulators have expressed concern to mortgage lenders and brokers about Web sites that allow borrowers with bad credit to "rent" the credit cards of people who have excellent credit histories, in a scheme that boosts their FICO scores by hundreds of points and enables them to qualify for lower financing rates. Although the Web sites are taking advantage of a loophole in the law permitting authorized user accounts, submitting mortgage applications with artificially inflated FICO scores is bank fraud and a violation of a number of other statutes. Fair Isaac believes the new scoring model will address "most of the problem," says public affairs manager Craig Watts.

Posted by S. Germain at 10:55 AM | Comments (0)

Bill to Simplify Mortgage Disclosures

A bill in the works by Reps. Patrick McHenry, R-N.C., and Al Green, D-Texas, both members of the House Financial Services Committee, would make changes to the Real Estate Settlement Procedures Act. Under the proposal, lenders would have to provide a one-page disclosure form to borrowers, replacing documents currently in use that McHenry deems "increasingly complex, convoluted, and cumbersome." Based on a form created by American Enterprises Institute resident fellow Alex Pollock, lenders would have to spell out the introductory interest rate, the fully indexed rate, the "maximum possible" rate, prepayment penalties and their triggers and balloon payment amounts and due dates. Due to borrowers three days prior to closing, McHenry believes the form is a suitable alternative to banning loan practices.

Posted by S. Germain at 10:52 AM | Comments (0)

June 15, 2007

Alt A Servicers

Posted by S. Germain at 09:31 AM | Comments (0)

The First American Corporation Announces Three Senior-level Appointments

The First American Corporation, America’s largest provider of business information, today announced that Michael A. Rasic has been named vice president, director of SEC reporting; David L. Ruhm, chief actuary; and Mark E. Seaton, director of investor relations.
“Mike, David and Mark each have extensive experience and a significant understanding of their respective fields,” said Frank V. McMahon, vice chairman and chief financial officer of The First American Corporation. “I look forward to working with each one on upcoming projects, and am confident that their expertise and subsequent contributions will bring added strength to First American’s SEC reporting, actuarial and investor relations functions.”

Posted by S. Germain at 09:27 AM | Comments (0)

Jo Etta Bandy Promoted to Senior Vice President, Corporate Communications for The First American Corporation

The First American Corporation, America’s largest provider of business information, today announced that Jo Etta Bandy has been appointed senior vice president, corporate communications.

Recognized for her vital role in working with executive management to develop and disseminate the company’s key messages, Bandy will continue to oversee all facets of First American’s corporate communications efforts, which include media and public relations and internal employee communications and messaging, as well as corporate branding and reputation management.

Posted by S. Germain at 09:26 AM | Comments (0)

Snag in Fidelity's buyout plans?

Ceridian Corp.'s largest shareholder says combined offer of $5.3 billion is not enough.

Ceridian Corp.'s largest shareholder said Wednesday he opposes a proposed buyout of the company by Fidelity National Financial Inc. and Thomas H. Lee Partners L.P., because the $5.3 billion price is too low.

Pershing owns 14.9 percent of Ceridian's stock.

Ceridian, a Minneapolis-based company that provides outsourced human resources and payment processing services, announced last month that its board of directors had agreed to the $36-a-share buyout.

Jacksonville-based Fidelity and investment firm Thomas H. Lee are equal partners, but the firms expect other investors to join them in the deal, so Fidelity would end up owning less than 50 percent.

Posted by S. Germain at 09:23 AM | Comments (0)

Fidelity National Financial to Leverage ID Analytics ID Network to Safeguard Customers and Combat Identity Fraud

ID Analytics, Inc., the leader in Identity Risk Management, today announced that Fidelity National Financial, Inc. will be using ID Analytics ID Network(TM), the nation's first and only real-time fraud prevention network, to manage identity risk. Fidelity National Financial is the largest U.S.-based title and escrow company to become a member of the ID Network. By joining the ID Network, Fidelity will gain unique visibility and insight into the risk level of mortgage applicants and can protect more consumers and lenders from mortgage fraud.

Posted by S. Germain at 09:21 AM | Comments (0)

Pecos Mortgage Completes Upgrade to LSSI's Servicer3D

LSSI, a global provider of eMortgage enabled lending and loan servicing technology systems, announced that San Antonio, Texas-based Pecos Mortgage, an independent loan servicing company, has successfully completed an upgrade to Servicer3D, LSSI's next generation of loan accounting software that replaces the company's LoanBase SERVICER application.

Posted by S. Germain at 09:18 AM | Comments (0)

Interthinx(R) Exchange of Critical Information Provides Financial Industry Unmatched Risk Management Results

Interthinx®, the leading provider of proven risk mitigation, mortgage fraud prevention and regulatory compliance tools, has launched a powerful expansion to its existing set of Global Variances, already contained within its proven FraudGUARD® scoring system, to provide lenders and investors access to unparalleled and essential mortgage fraud and risk management results. Over 1400 Interthinx customers will benefit from this newly expanded data sharing network and application of advanced analytics.

Breakthrough analytics have been applied to Interthinx FraudNET(SM) technology; the platform that allows Interthinx to coalesce massive amounts of data from multiple sources, deeming it the largest loan level fraud detection database in the industry.

Posted by S. Germain at 09:13 AM | Comments (0)

TransUnion Opens Central American Data Center in Guatemala City

In its continuing effort to strengthen Guatemala's credit and financial infrastructure, TransUnion today announced the opening of its Central American data center in Guatemala City. The centralized data center will serve as the main hub for TransUnion's delivery of service offerings for financial institutions in Guatemala, Honduras, Nicaragua and Costa Rica.

Posted by S. Germain at 09:12 AM | Comments (0)

Access Business Technologies and Ellie Mae Announce Strategic Partnership

Access Business Technologies, the mortgage technology experts, and Ellie Mae, an award-winning provider of innovative software and services for the mortgage industry, announced today that they have formed a strategic partnership to provide hosting and managed services solutions to Ellie Mae customers, enabling them to outsource all software applications and IT functions.

By hosting Ellie Mae's Encompass products with ABT, mortgage professionals will benefit from ABT's best-in-class hosting and managed services including state-of-the-art physical and data security, access control, disaster recovery and business continuity. ABT is a SAS70 Level II organization providing premium-level managed services to the mortgage industry.

Posted by S. Germain at 09:01 AM | Comments (0)

Quantrix Provides Interface for ADCo

Portland, Maine-based Quantrix has announced that it is providing a modeling interface for risk-analytics provider Andrew Davidson and Co. The partnership between Quantrix and ADCo will deploy the Quantrix Modeler as the interface for ADCo's new LoanDynamics Mortgage Credit Model to serve fixed-income investors in the mortgage-based securities industry. The model incorporates historical data from approximately eight million loans by 144 issuers over 15 years to analyze borrower behavior and predict mortgage loan dynamics. The Quantrix LoanDynamics Interface enables mortgage credit analysts to analyze loan data, define interest rate and housing price scenarios, and model any combination of loans and scenarios with Quantrix Modeler. According to the announcement, customers receive a turnkey solution that includes ADCo's LoanDynamics Model, Quantrix Modeler licenses, and the Quantrix LoanDynamics Interface.

Posted by S. Germain at 08:56 AM | Comments (0)

First Franklin Enters 'Alt-A' Market

Subprime wholesaler First Franklin Financial Corp., San Jose, Calif., has entered the alternative-A market and plans to securitize the loans through its parent company, Merrill Lynch. In an interview with MortgageWire, FFFC president and chief executive Andrew Pollock said the nonprime lender had been planning the menu expansion for a year. It began accepting the loans on June 11. Mr. Pollock said he anticipates that alt-A loans could account for about 10% of the company's volume this year. (In 2006, FFFC funded $27.6 billion in subprime loans, ranking ninth nationwide, according to the Quarterly Data Report.) FFFC funds loans through a network of 20,000 approved brokers.

Posted by S. Germain at 08:55 AM | Comments (0)

Subprime Loan Defaults Jump

The U.S. foreclosure rate bumped up to 0.58 percent during the first three months of this year, according to the Mortgage Bankers Association, compared to 0.54 percent in the previous quarter. The increase was driven largely by greater foreclosure activity among subprime borrowers, particularly those carrying adjustable-rate mortgages. MBA's data shows that subprime loans entering the foreclosure process reached a five-year high of 2.43 percent, up from 2 percent in the fourth quarter of 2006. Prime loans, meanwhile, hit a foreclosure rate of 0.25 percent--the highest level ever--compared to 0.24 percent in the prior quarter.

Posted by S. Germain at 08:53 AM | Comments (0)

Foreclosure Rate Hits Historic High

The Mortgage Bankers Association's first-quarter foreclosure report reveals a jump in the number of new foreclosures to a level not seen in more than five decades. However, MBA chief economist Doug Duncan stresses that the foreclosure rate actually would have fallen had it not been for substantial increases in seven states: California, Florida, Nevada, Arizona, Ohio, Michigan and Indiana.

Posted by S. Germain at 08:52 AM | Comments (0)

Lehman to Combine Mortgage Units

Lehman Brothers Holdings Inc. recently announced that it will merge its home-finance units, BNC Mortgage and Aurora Loan Services, eliminating nearly a quarter of BNC's workforce in the process. BNC uses independent mortgage brokers to arrange subprime loans, while Aurora handles Alt-A loans for borrowers who have good credit but not enough documentation to prove their incomes and assets. Thomas Wind, director of U.S. residential lending for Lehman, said 400 BNC workers will be laid off.

Posted by S. Germain at 08:51 AM | Comments (0)

More ARM Borrowers Switching to Fixed-Rate Loans

The most recent U.S. Mortgage Payment Index from the University of Pennsylvania's Wharton School indicates that stricter underwriting guidelines are helping the mortgage market correct itself, says Wharton real estate and finance professor Susan Wachter. According to Wachter, prime loans accounted for more than 60 percent loans sold through brokers in January, reflecting a gain from 50 percent the prior year. Additionally, 89 percent of borrowers with one-year adjustable-rate mortgages and 84 percent with hybrid ARMs refinanced into fixed-rate products during the first quarter--up 4 percent and 8 percent, respectively, from a year ago.

Posted by S. Germain at 08:50 AM | Comments (0)

Commercial/Multifamily Mortgage Debt Exceeds $3 Trillion, MBA Says

The level of commercial/multifamily mortgage debt outstanding grew by 2.5 percent in the first quarter, exceeding $3 trillion for the first time, according to Mortgage Bankers Association analysis of the Federal Reserve Board Flow of Funds data.
The $3.001 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was an increase of $72.4 billion from the fourth quarter 2006. Multifamily mortgage debt outstanding grew to $741 billion, an increase of $11.8 billion or 1.6 percent from the second quarter.

Posted by S. Germain at 08:49 AM | Comments (0)

Countrywide May Loans Up 15 Percent

Countrywide reports a 15-percent jump in mortgage originations to $44.42 billion during the year-over-year period ended in May. However, the nation's No. 1 mortgage lender also reported an increase in its foreclosure rate to 0.90 percent, twice what it was in May 2006. The company expanded its workforce by 1,329 last month and hopes to boost market share at a time when many of its competitors are adjusting to the housing downturn by scaling back or going out of business.

Posted by S. Germain at 08:48 AM | Comments (0)

GE Unit Makes Change in Subprime Lending

Subprime lending guidelines proposed by federal banking regulators in March have been embraced by WMC Mortgage Corp., a subsidiary of General Electric Co. WMC is the first in the subprime sector to do so, while Countrywide Financial Corp. and others continue to express concern about the guidelines drying up credit. The guidelines target hybrid adjustable-rate mortgages and urge lenders to underwrite loans based on the fully indexed interest rate.

Posted by S. Germain at 08:47 AM | Comments (0)

Wall Street Tiff May Impact Mortgages

Problems in the subprime mortgage market have pitted Wall Street firms, banks and hedge funds against one another. Lenders insist that it is legal for them to extract struggling loans from mortgage bundles--even if the securitization involves default-risk swaps--in order to modify them and help homeowners avoid foreclosure. However, hedge funds contend that contracts prevent them from doing so and accuse them of wanting to get out of paying hedge funds for the boost in defaults; these contracts typically require hedge funds to pay lenders when defaults move under a specified level and lenders to pay hedge funds when defaults rise.

Posted by S. Germain at 08:46 AM | Comments (0)

Subprime Crash Squeezes First-Time Buyers Out of Housing Market

The National Association of Home Builders reports that subprime mortgage lenders have tightened their credit guidelines to such an extent that they are blocking 500,000 first-time buyers out of the housing market. Organization officials are concerned that a decrease of that magnitude could cause sales of new homes to tumble by 4 percent and sales of existing residences to slide 7 percent. The prospect has sent shares of several home builders tumbling in recent months, with Toll Brothers CEO Robert Toll lamenting that tightened lending "may have served to impede the glimmers of a rebound we started to see in early February." Washington Mutual Inc. reports that stricter credit rules and the closing or sale of more than 50 mortgage firm! s should reduce subprime lending to $350 billion in 2007, a 47-percent drop from 2005.

Posted by S. Germain at 08:45 AM | Comments (0)

Making SMART Docs Accessible

The Mortgage Industry Standards Maintenance Organization (MISMO) will roll out SMART Docs Version 2.0 in the near future in the hopes that more lenders will embrace eMortgages. MISMO eMortgage Workgroup Chairman Patrick Hartford says the new generation of software will make it easier for loans to be recorded, adding that the compound-document format--which has been applauded by investors--will make it easier to handle HUD-1 and other paperwork that require numerous edits. According to Hartford, "In normal terms, what that means is that it will look like a Zip file that includes multiple files within it. So, the new version will allow for multiple views, multiple signatures, multiple data elements, etc. You can basically look for just what you want and pull it out." Hartford notes that lenders using SMART Docs Version 1.2 can continue to do so.

Posted by S. Germain at 08:44 AM | Comments (0)

AIG to Aid Subprime Borrowers at Cost of $178 Million

Insurance behemoth American International Group has reached a settlement with the U.S. Office of Thrift Supervision over accusations that the company's banking arm extended mortgage credit that was "inappropriate" for the poor-credit borrowers who received the loans. Most of the mortgages in question are adjustable-rate products originated by AIG's Wilmington Finance unit between July 2003 and May 2006. AIG already had earmarked $128 million to refinance subprime borrowers into loans with more affordable terms, to refund fees and to hire a consultant to help it improve its mortgage policies; but OTS spokesman Kevin Petrasic said the insurer will add up to $50 million more to that effort during the current quarter. It also will contribute $15 million to nonprofit organizations that support financial literacy.!

Posted by S. Germain at 08:41 AM | Comments (0)

June 08, 2007

Existing Home Sales

Posted by S. Germain at 09:41 AM | Comments (0)

The First American Corporation's Chairman & Chief Operating Officer Visit India Operations

First Indian Corporation, a wholly owned subsidiary of The First American Corporation recently hosted First American corporate executives Parker S. Kennedy, chairman and CEO and Dennis Gilmore, COO during a five-day visit to India.

The First American officers visited First Indian offices in Bangalore and Hyderabad in order to gain greater insight into the corporation’s overseas operations. During the visit, they reviewed opportunities to further extend First American product and service offerings in the Indian market, met with a high government official to exchange views on First American's expansion plans and learned more about the Indian government, culture and economic vision.

“The Indian economy is growing rapidly and factors strongly into our plans to expand product and service offerings globally,” said Kennedy. “We have established a leadership position in the real estate and mortgage information industries, and that uniquely positions us to offer a higher degree of sophistication in the area of business information services in India.”

Posted by S. Germain at 09:34 AM | Comments (0)

LandAmerica Investor Suggests Sale

A shareholder of LandAmerica Financial Group Inc. has asked the title insurance company's board to consider selling the company, according to a regulatory filing Friday with the Securities and Exchange Commission.

LandAmerica shares jumped $10.30, or 11 percent on the news, to a fresh 52-week high of $106.22 in morning trading. During the past 52 weeks, the stock has climbed from a low of $58.75 in July 2006 to its previous high of $93.50 on Tuesday.

In a letter to the board on Friday, the shareholder, Viking Global Performance LLC, said it "generally been pleased" with management's performance but said the company should consider a sale to further improve value for shareholders.

Posted by S. Germain at 09:32 AM | Comments (0)

First Houston Mortgage Originates Fully Electronic Loans with Encomia eMortgage Solution

Encomia, a provider of end-to-end eMortgage technology, announced today that Houston-based First Houston Mortgage Corp. has successfully launched its eMortgage solution, enabling fully electronic mortgage origination.

With full, in-house mortgage banking services, First Houston Mortgage implemented Encomia's eMortgage solution as a comprehensive tool kit for the creation of SMART Docs, electronic signature capability and secure document archival. Using Encomia technology, the loans are stored in the electronic vault of Horesham, Pa.-based GMAC Bank. Through the elimination of manual processing, First Houston Mortgage gains a significant efficiency advantage over its competitors.

Posted by S. Germain at 09:28 AM | Comments (0)

a la mode's SureDocs e-mortgage Application Delivers for Flagstar Bank

Flagstar Bank, a proven leader in paperless mortgage processing, and a la mode, developer of mission critical desktop, mobile and Web tools for mortgage originators, announced the completion of a custom software plug-in to a la mode's SureDocs system, which will streamline document delivery for Flagstar brokers who use the application

Posted by S. Germain at 09:26 AM | Comments (0)

Netupdate Adds Consumer Loan Functionality to Originator Pro

Netupdate, Inc. has added consumer lending functionality to Originator Pro, the company's Web-based online point of sale technology for the mortgage lending industry. The company has already created its first interface from the application to the ARTA(R) Lending Documentation System, a solution built upon the more than 50 years of experience and knowledge behind Wolters Kluwer Financial Services' Bankers Systems product line.

Posted by S. Germain at 09:25 AM | Comments (0)

Portellus Offers CollateralLogic Service for Appraisal Automation

Portellus, Inc., a leader in business-user driven change-management solutions, today announced it will offer CollateralLogic, a transaction-based service that automatically reviews appraisal reports against guidelines for fast, accurate risk identification and scoring. The solution allows lenders and investors to mitigate risk, realize best execution, minimize fraud and achieve straight through processing (STP) of appraisal reviews.

CollateralLogic works by using automated data capture to extract all key data points off a PDF or scanned appraisal report, then translates the data to XML, stores it to a database, and runs the information against a rules engine. The engine houses customer specific risk tolerance guidelines and a library of specific logic verification. CollateralLogic's evaluation results include flagged risks along with explanations behind each issue, thus allowing users to immediately identify a detailed process for risk resolution and informed decisioning.

Posted by S. Germain at 09:23 AM | Comments (0)

Mavent Leverages Pitney Bowes' Group 1 Software Technology to Enable Real Estate and Mortgage Industry Compliance

Group 1 Software, Inc., a Pitney Bowes Company, today announced that Mavent, Inc. has extended its relationship to continue utilizing Group 1 Software's geocoding technology as an integrated part of its Mavent Expert System solution.

The Mavent Expert System is a patent-pending rules-based engine that applies a model compliance decision set, based on Mavent legal rules as modified or supplemented by the client, to every loan in a client's pipeline or entire pools of whole loans. Mavent offers its solutions through a Software-as-a-Service (SaaS) model. The Mavent Expert System has conducted more than 20 million compliance reviews to date for some of the industry's largest originators and purchasers, including Fannie Mae, National City Mortgage Corp., AmTrust Bank, First Franklin, Ocwen Financial Corp., Credit Suisse, GreenPoint Mortgage, and HomeLoanCenter (a division of LendingTree).

Posted by S. Germain at 09:20 AM | Comments (0)

Monroe County, N.Y., Awards Contract to Landata Technologies Inc. for Landata e-STAR Plus(TM)

Landata Technologies, Inc. announced that Monroe County, N.Y., (Rochester) is awarding a contract to install the Landata e-STAR Plus land document recording system in 2007.
Upon completion of a technical review of the Landata e-STAR Plus System, Monroe County concluded that the e-STAR system offered the best value proposition.

Posted by S. Germain at 09:19 AM | Comments (0)

Two Million Foreclosures predicted in the next 2 ½ years

Almost two million homes, condos, and townhouses are predicted to foreclose in the next two and a half years, according to Housing Predictor.com.

This information is based on an analysis of the nation's largest 100 metropolitan real estate markets by researchers during the month of May.

Michigan, Ohio and Colorado were among the highest number of states experiencing foreclosures. Close behind were California, Alabama, Indiana and Mississippi.

These foreclosures are due to an increase in adjustable rate mortgages and unethical lending practices on the part of some mortgage borrowers and lenders.

Posted by S. Germain at 09:12 AM | Comments (0)

GreenPoint Cites Market Woes in Cuts

Subprime mortgage concerns that have tightened underwriting standards and diminished secondary market appetite in the neighboring "near prime" market have forced originator GreenPoint here to cut 440 staff positions and close 12 of its 41 operational centers, according to a company spokesperson.

Posted by S. Germain at 09:08 AM | Comments (0)

10 Mortgage Lenders Sued

Ohio Attorney General Marc Dann filed suit against 10 mortgage lenders for violating the state Consumer Sales Practices Act by pressuring appraisers for inflated valuations to push deals through. Dunn accused the lenders of "knowingly compensating, instructing, inducing, coercing, or intimidating appraisers" to pad property values; and he blamed such predatory lending practices for the state's "shameful home foreclosure rate." Dunn wants each company to provide reimbursements and pay $25,000 in civil penalties and also is asking for permanent injunctions that would keep them from participating in illegal lending activities. Apex Mortgage Services LLC--which denies the allegations--is among the seven Ohio lenders being sued; the others are located in California and Arizona.

Posted by S. Germain at 09:07 AM | Comments (0)

Retiring Boomers Key Reverse Mortgages

Big lenders such as Bank of America, Countrywide Financial and Wells Fargo are looking to target reverse mortgages as a potential growth industry, with 78 million baby boomers set to retire in the near future. There was a 77-percent surge in the number of such loans issued last year from 2005, and half of all reverse mortgages ever issued were made over the past two years; yet the product still accounts for only 1 percent of all mortgages. As reverse loans become a mainstream product, industry observers expect the cap on how much homeowners can borrow to be raised, fees to be reduced and interest rates to come down. "Eventually reverse mortgages will be like conventional mortgages. But we're still in the infancy of changes," says Dennis Haber of Senior Funding Group in Hicksville, N.Y., which specializes in the niche.

Posted by S. Germain at 09:05 AM | Comments (0)

Bernanke's Sense for Now: Hands Off

In a speech at the American Bankers Association's International Monetary Conference, Federal Reserve Chairman Ben Bernanke said he remains concerned that inflation could rise, but he believes the continued housing downturn makes it unlikely that the economy will overheat. Thus, Bernanke does not expect the central bank to boost interest rates when it meets June 27-28.

Posted by S. Germain at 09:04 AM | Comments (0)

Loss Mitigation May Not Work for Some ARMs: Fitch

Repayment plans, forbearances and loan modifications were never meant to serve as workout strategies for adjustable-rate borrowers who have loans they cannot afford, according to Fitch Inc. In a new survey of subprime mortgage services, the ratings agency found that repayment and forbearance plans were not having as much of an impact in resolving loan defaults during the first quarter. With the interest on more than 30 percent of subprime ARMs scheduled to adjust in 2007 and about another 25 percent scheduled to do so next year, the report says such loan-mitigation strategies "are not expected to work for some borrowers facing ARM resets, because they will not be able to afford the new monthly payment." More homeowners are seeking assistance from servicers, and political pressure is mounting on servicers to help bail out bor! rowers.

Posted by S. Germain at 09:03 AM | Comments (0)

Accredited to Be Sold for $400 Million

Private equity firm Lone Star has agreed to pay $400 million in cash for the troubled subprime mortgage firm Accredited Home Lenders. After losing $37.8 million in the fourth quarter of last year, San Diego-based Accredited said in April that it suffered "significant losses" during the first three months of the year. Dallas-based Lone Star will take Accredited private, allow senior management to stay on but continuing to trim the company--which already has slashed its workforce by a third to 2,900 employees. "While there is some liquidity returning to the subprime market, the operation is going to have to shrink so they're only originating loans that the bond markets will buy at a price that exceeds the cost of origination," noted Richard Eckert, an analyst with Roth Capital Partners.

Posted by S. Germain at 09:02 AM | Comments (0)

June 01, 2007

New Home Sales

Posted by S. Germain at 08:36 AM | Comments (0)

Appeals Court Reverses First American Damages

First American Corp. said a federal appeals court has reversed $32.4 million in punitive damages against one of the title company’s subsidiaries.

The 6th U.S. Circuit Court of Appeals last week reversed an early 2005 verdict in the case of Chicago Title Insurance Corp. versus James A. Magnuson, First American said in a Securities and Exchange Commission filing.

The appeals court also ordered a new trial.

The original lawsuit was filed by Chicago Title Insurance Corp., a unit of First American’s rival Fidelity National Financial Inc., which moved from Irvine to Florida in 2003.

Posted by S. Germain at 08:31 AM | Comments (0)

Lloyds TSB signs for Fidelity's commercial loans suite

Lloyds TSB is to implement the advanced commercial banking system (ACBS) product suite from US based Fidelity National Information Services (FIS) to support its commercial lending operations.

ACBS is an integrated package that streamlines and automates the commercial lending process and includes SyndTrak, LoanTrak, Origination, Servicing and DataMart. FIS says that these tools manage the life of a loan, covering origination, syndication, servicing, trading, portfolio management, reporting and analysis.

Lloyds will use ACBS to manage its corporate markets unit's loan syndication, distribution and trading activities and lending portfolio.

Posted by S. Germain at 08:28 AM | Comments (0)

Fidelity National Financial in $5.3 billion deal

Ceridian Corp. has reached an agreement to be bought by a private equity firm and Fidelity National Financial Inc. in a deal worth $5.3 billion. Thomas H. Lee Partners, a private equity firm based in Boston, and Jacksonville-based Fidelity (NYSE: FNF) will pay $36 per share in cash for Ceridian. The deal is subject to regulatory approvals and a shareholder vote.

Bloomington-based Ceridian (NYSE: CEN) provides human resources services. The company has previously announced that it was exploring "strategic alternatives" for the future of the company.

Posted by S. Germain at 08:25 AM | Comments (0)

Fidelity National Financial, Inc. Announces Management Changes

Fidelity National Financial, Inc. today announced the promotion of Alan L. Stinson, currently Co-Chief Operating Officer, to the position of Chief Executive Officer. Raymond R. Quirk, currently Co-Chief Operating Officer and Brent B. Bickett, currently President, have been named Co- Presidents. Each of these executives has been a long-time member of the FNF senior management team. William P. Foley, II will continue as Chairman of the Board of Directors, actively focusing on strategic issues and acquisitions.

Posted by S. Germain at 08:24 AM | Comments (0)

Fair Isaac and TransUnion Enhance FICO Risk Score in Canada

TransUnion and Fair Isaac Corporation (NYSE:FIC - News), the leading provider of analytics and decision management technology, today announced the availability to Canadian lenders of the newest FICO(R) Risk Score (formerly known as Empirica) for precise management of consumer credit risk. The FICO Risk Score analyzes TransUnion credit reports to rank-order consumers according to the likelihood that their credit obligations will be paid as expected.

Posted by S. Germain at 08:17 AM | Comments (0)

BNY Mortgage and EverBank Gather Industry's Top Leaders to Build Reverse Mortgage Business

With the popularity of reverse mortgages on the rise, BNY Mortgage, An EverBank® Company, is assembling the best and brightest in the industry to create a world-class reverse mortgage business catering to older Americans looking to leverage their home equity and establish financial well-being, independence, and peace of mind. Members of this extensive management team include: Craig Corn, co-president; Robert V. Sivori, co-president; Richard A. Peters, senior vice president; Sarah Hulbert, senior vice president; Joseph P. DeMarkey, vice president; Mark A. Burton, vice president, wholesale sales; and Michael S. Mooney, vice president, wholesale sales

Posted by S. Germain at 08:15 AM | Comments (0)

Wolters Kluwer Financial Services and Suntell Team to Help Lenders Mitigate Risk and Improve Operational Efficiencies

Wolters Kluwer Financial Services and Suntell, Inc. announced today that Suntell will integrate several of Wolters Kluwer Financial Services' PCi compliance analytics solutions with Suntell's LMS.Net Loan Management System. These solutions will help Suntell customers mitigate lending risks and improve operational efficiencies by eliminating the need to re-key data or maintain separate compliance software programs.

Posted by S. Germain at 08:14 AM | Comments (0)

Bair: Servicers Have Latitude to Restructure Deals

Federal Deposit Insurance Corp. Chairman Sheila Bair says accounting firms and industry groups have concluded that there is latitude in the accounting rules governing securitizations that allow servicers to actively restructure subprime loans facing foreclosure. She noted that the industry groups are committed to working with borrowers to prevent foreclosures and with community activists to reach borrowers that need to restructure their loans.

Posted by S. Germain at 08:11 AM | Comments (0)

Accenture Provides Post-Closing BPO

First National Bank of Arizona has turned to Phoenix-based Accenture for post-closing business process outsourcing. The Accenture service combines personnel, process, and technology to fully automate this part of mortgage fulfillment. Financial terms of the two-year contract were not disclosed. Accenture said it will provide the bank with file-room services, including imaging to convert paper documents into electronic form, indexing to capture relevant information in digital form, workflow services to speed processing, and performance metrics spanning the process. It will also offer data and document review to confirm that loans have met underwriting, servicing, and secondary-market salability requirements. Accenture will deliver the service both onsite and through its Global Delivery Network, which includes more than 40 centers in 30 cities around the world.

Posted by S. Germain at 08:08 AM | Comments (0)

Pipeline: Reverses Advance

Nationwide, a number of lenders have begun offering fixed rates on reverse mortgages--which enable homeowners 62 and older to convert some of their home equity into a cash payment. Florida-based Value Financial Mortgage Services Inc. last week announced that its fixed-rate product would be set under 7 percent, while Borba Investments Inc. of California's MLS Reverse Mortgage is allowing eligible homeowners to lock in at a rate of 6.5 percent. While most reverse loans carry an adjustable rate of about 5.86 percent, Borba President and CEO Mike Borba says borrowers who take out fixed products will have access to the money in a lump sum, whereas adjustable borrowers usually receive monthly payments. Additionally, Borba describes the reverse mortgage market as evolving "tremendously" and "so qui! ckly" that lower rates may be possible in the future. The National Reverse Mortgage Lenders Association reports that 90,000 reverse mortgages were originated in 2006, roughly twice the volume of the previous year.

Posted by S. Germain at 08:03 AM | Comments (0)

Standards, Regulation in Place for Electronic Closings (FA Quote)

Though electronic mortgage closing standards are being formulated and technology platforms rolled out to allow every party in the real estate transaction to conduct business paperlessly, adoption remains fairly low. More than 7 million residential properties changed hands last year, but just slightly more than 2,400 eNotes have been recorded on the MERS e-Registry, which transfers electronic control of mortgages to investors who purchase them on the secondary market. The Mortgage Bankers Association has spearheaded the effort to increase e-servings and spur adoption among investors and warehouse lenders with its eMortgage Adoption Task Force, which also is hoping to boost electronic recording by lenders through a partnership with the Property Recorders Industry Association. Harry Gardner, MBA's senior director of industry technology, says a ! growing number of states are embracing e-recording and developing Web portals for this purpose. According to Peggy Baker of First American Corp.'s Enterprise Technology Group, "You don't have to have every single player on board to improve the process. The key player is the investor, and the lender."

Posted by S. Germain at 08:02 AM | Comments (0)

Internet Becomes the New Home for Closing Loans

The Internet-based mortgage settlement service ClosingStream is now being offered by companies such as E-Loan, Wachovia and other big lenders. According to Albert Verkuylen, chief strategy officer of Santa Ana, Calif.-based LSI--the provider of the ClosingStream system to lenders--about 1,000 home loans a month are being closed using ClosingStream, and 80 percent of the transactions involve refinancing. Filling out documents online for refinanced and home-equity loans is more convenient for borrowers and can save them hundreds of dollars in closing fees, lenders add.

Posted by S. Germain at 07:58 AM | Comments (0)

Eppraisal.com in Partnership With Yahoo

Yahoo's Real Estate Home Values Center now will offer residential valuations that are provided by Eppraisal.com. The deal calls for the national property valuation Web site run by Orlando-based Saris Technologies to provide access to local realty brokers through the Real Estate Home Values Center. Yahoo will offer a link to eppraisal.com on its Web site.

Posted by S. Germain at 07:57 AM | Comments (0)