Compliance is Top Issue in LOS Development

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4 · 27 · 11

Whether it’s the loan officer compensation rule or other mortgage compliance issues, the technology behind loan origination systems is evolving to help lenders keep up. Other recent LOS innovations tackle social media, cloud computing and a growing number of portable devices.

A recent forecast from loan-origination-system developer Dorado Corp. said vendor management will migrate to a single cloud platform. But the biggest 100 lenders will continue to favor a “private cloud” over a multi-tenant platform. The Mortgage Daily advertiser sees more originators moving into servicing as exposure increases from loan pools they originated.

San Mateo, Calif.-based Dorado predicts government oversight will remain active, especially with mortgage brokers, and mortgage compliance will remain center stage — leaving lenders to rely on third-party data and analytics. Loan-level data quality will evolve from being just an investor requirement to becoming a market advantage. Dorado noted that while the cost of originating is expected to rise, new portable devices such as the iPad and Android phones are emerging.

Loan-officer-compensation functionality has been added to OpenClose’s LenderAssist, a March 23 announcement indicated. The mortgage technology provider said that the LOS was “carefully amended” to include originator mark ups, fees and compensation.

Hollywood, Fla.-based OpenClose said it debuted social medial management software at the Mortgage Bankers Association’s technology conference last month, while the Compliance EAGLE platform from Questsoft was integrated to automate preparation and submission of loan data for the new state exam procedures.

The Catapult Mortgage Origination System was launched last month, ISGN announced. The system is an upgrade for MORvision users. It reportedly includes mobile device functionality that makes it accessible from laptops, smart phones and tablets like iPads.

A cloud-based version of the Symphony LOS announced on March 28 by Mortgage Cadence LLC promises to provide small- and mid-tier lenders the compliance support, time-saving features and reliability that was previously only available to the largest lenders. Included in the new application are real-time data access, a branded Web site and a redundant infrastructure. Also integrated into the application are security and disaster recovery and collaborative process capabilities.

The newest client at MortgageFlex Systems Inc. is Gateway Mortgage Group, an April 6 statement said. The purchased system includes a point-of-sale solution with remote access. By using MortgageFlex’s residential lending system, the Tulsa, Okla.-based lender is relying on a dedicated deployment team at the Jacksonville, Fla.-based service provider.

MortgageFlex said in March that its core products were integrated with Compliance Systems Inc., making the document process part of the LOS.

A full mortgage application feature has been added to the lead-generation portion of MortgageApp, which feeds into eMagic’s loan processing system, a news release last month said. No pricing changes resulted from the enhancement.

Ellie Mae touted First Guaranty Mortgage Corp. as a new customer in a news release last month. After being limited by its existing LOS, First Guaranty selected Encompass360 as its mortgage management solution — a move that Andrew Peters, national sales director for the McLean, Va.-based lender, said will enable higher origination volume.

First Guaranty said it also utilizes Ellie’s TPO WebCenter — which enables it to provide special pricing for every mortgage broker.

1st Priority Mortgage Inc. President Brooke Anderson-Thomkins said in a March 7 announcement that her company uses Mortgage Builder’s LOS to help it service RealtyUSA — the sixth-largest U.S. Realtor and the source of 70 percent of its conforming and government business. 1st Priority is based in the Buffalo, N.Y., area.

“It’s the nature of the relationship to hold an affiliate partner to a higher standard, and living up to it means we have to have the best possible people and the best possible technology,” Anderson-Thomkins stated.

Earlier this year, Mortgage Builder boasted Westar Mortgage as a new client. The move reportedly enabled the Albuquerque-based lender to provide service that is better than at the largest banks for both retail and correspondent business.

Before that, the LOS provider said New Jersey’s Maverick Funding Corp. had signed on.

An integration between Avista Solutions and FHA Connections gives FHA-approved lenders direct access to the Department of Housing and Urban Development’s FHA loan origination functions, a recent announcement indicated.

Mortgagebot LLC claims that its online channel with point-of-sale solutions improves loan originator productivity, efficiency and service. Robert Hardy, an originator with First Federal Savings and Loan Association in Charleston, S.C., reportedly increased his 2009 originations by nearly 400 percent over 2008 as a result of implementing the LOS.

Informative Research Inc. and Network Closing Services were added to The Calyx Network, a March 2 statement said.

The prior month, Calyx Software announced a series of Webinars to help familiarize users with product features. The first Webinar, Originator Compensation & the Fed Rule, was called “very successful.” The next Webinar was expected to be completed by next month.


Mortgage Daily Staff


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