LOS Enhancements Benefit Traditional, CRE & Reverse Originators

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Recent enhancements to loan origination systems include features that help simplify loan origination commission calculations, avoid fallout from cyber-criminals and comply with agency lending requirements as well as other mortgage regulations. Among several mortgage firms to implement new LOS technology were a third-party lender, a commercial real estate lender and a reverse mortgage lender.

The implementation of Encompass360 by First Bank Mortgage made it easier for wholesale and correspondent clients to do business with the Augusta, Ga., lender, Ellie Mae announced Tuesday. Third-party originators, including 60 correspondent lenders, were responsible for 60 percent of First Bank’s more than $400 million in 2011 originations. Before turning to Ellie’s product, the company used multiple systems.

First Bank Mortgage Executive Vice President Thomas Bird estimated in the news release that the company will save $200,000 during the first year it uses the technology from Ellie, a Mortgage Daily advertiser. He speculates additional savings from avoiding mistakes that could lead to compliance penalties or repurchase demands.

Encompass was enhanced in February with an automated solution to calculate, communicate and reconcile loan officer commissions. Data is extracted from multiple sources to provide real-time commissions outstanding. Managers review the numbers and submit for payroll. An early adopter of the offering, Salt Lake City-based Castle & Cooke Mortgage LLC, said in the news release that the system reduced from four to two the number of employees needed to calculate semi-monthly commissions.

Late last year, a second major release of Encompass360 included new secondary marketing functionalities, expanded online communications options and features to help comply with the Uniform Loan Delivery Dataset and Uniform Collateral Data Portal.

Fannie Mae and Freddie Mac certified that Mortgage Builder is in compliance with ULDD requirements, a Feb. 13 statement said. The voluntary ULDD delivery date is next month, while the mandatory date is July 23.

Mortgage Builder recently announced that it has maintained cyber liability insurance coverage for the last three years even though such coverage is not required of LOS providers. The coverage, which pays up to $2 million per claim, protects the sensitive data of Mortgage Builder clients and their borrowers.

Late in 2011, Southfield, Mich.-based Mortgage Builder said that its new LOS clients included Riverview Community Bank of Vancouver, Wash., and First American Mortgage Trust in Brookline, Mass.

A suite of lending calculation software components that provide computational compliance has been integrated in Fiserv Inc.’s Common Origination Platform, an announcement Thursday said. SmartCalcs financial compliance software from Carleton Inc. helps mortgage lenders better manage business risk. Federal and state regulatory updates are automatically included, and underwriting guidelines tied to the Truth in Lending Act are supported.

Among financial institutions to recently implement Fiserv’s origination platform was Home Federal Bank in Sioux Falls, S.D. Fiserv, a Mortgage Daily advertiser, says that the platform consolidates origination technology for all types of loans.

Another Mortgage Daily advertiser, Calyx Software, said this month that an interface update to The Calyx Network includes new connections to Digital Docs Inc. and PointServices. Other service providers recently added to The Calyx Network include ComplianceEase and BuildFax.

A February press release indicated that Stewart Title’s online ordering platform, Orders Gateway, was integrated into Calyx Point.

Relay was selected as the enterprise LOS by Citizens First Wholesale Mortgage, Blueberry Systems LLC said last week. The system handles the loan process from application to closing for The Villages, Fla.-based lender and provides a universal data model that includes loan production data.

Last month, Greenwood Village, Colo.-based Blueberry said that Norcom Mortgage and Insurance was implementing Relay.

An agreement between MortgageFlex Systems and CCMC Inc. will provide an automated connection from LoanQuest to all major loan servicing systems, a recent news release said. Down the road, CCMC plans to act as middleware to other lending services. A recent adopter of LoanQuest was the radius financial group inc.

Avista Solutions recently boasted about adding First National Bank of Pennsylvania as a client. Among factors that played into First National’s decision were transparency, the web-based platform and online data storage. Charleston, S.C.-based Avista recently announced the integration of ComplianceAnalyzer.

LOS provider LendingQB said this month that Holt Crowder and Brian Smith joined its business development team. The platform was officially launched in December “and is now being successfully implemented at mortgage banks.” The Costa Mesa, Calif., technology provider said last month that a partnership with FirstClose Title enabled the integration of instant Good Faith Estimate quoting technology into the LOS.

Previously, LendingQB announced that mobile application companions have been made available for its cloud-based LOS. The free applications are available on Android phones and iPhones.

Reverse mortgage lender Generation Mortgage Co. replaced its in-house lending system with Orchestrator, Mortgage Cadence LLC recently announced. The move “to a fully scalable platform provided unlimited configuration capabilities in one centralized location.”

LMS 2012 has been made available for commercial loan originations, SS&C Technologies announced last month. Key features reportedly include the expansion of multi-currency capabilities, market valuations and valuation allowances. An executive for LMS-client Unum was quoted in the announcement as saying that the enhancements enables Unum staff to collaborate more effectively and faster while helping it to increase visibility and control.

Mortgage Expert

Mortgage Daily Staff



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