LOS Offerings Integrate Servicing Systems

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1 · 07 · 10

Two providers of loan originations systems have linked their products to loan servicing systems — enabling mortgage bankers to add servicing fees to their revenue streams. Enhancements for compliance, documents and pricing were among other recent LOS developments. As small financial institutions have seen an increase in market share, one LOS provider has seen its business spike.

A Notice of Allowance was granted to Dorado Corp. by the U.S. Patent and Trademark Office, the company said in July. The patent is expected to enable the LOS provider to expand into new consumer lending markets. At issue is a method for processing loans applications: Dynamic Workflow Architectures for Loan Processing.

The patent is a major milestone for Dorado, a Mortgage Daily advertiser, according to the San Mateo, Calif.-based company’s chief technology officer and one of the inventors, Rob Carpenter. The executive — who noted that Dorado technology is used by some of the biggest banks in the world — said the action follows patent No. 7,558,748 for “Purpose-Based Adaptive Rendering” granted last year and “validates the unique value of Dorado’s approach to managing complex, data-intensive transactions in the cloud.”

In July, Mortgage Builder Software said its system had been integrated with NYLX, a product and pricing engine. The alliance was struck up as a result of the two companies’ standing as preferred vendors for the Lenders One Mortgage Cooperative.

Mortgage Builder recently touted that it gained Orrstown Bank as a client. The 91-year-old bank, based in Orrstown, Pa., was particularly interested in the system’s FHA features.

Before that, Middleburg Heights, Ohio-based Home Lending Source went live with Mortgage Builder, according to a press release.

A “seamless process” has been developed for boarding loans directly from Mortgage Builder’s LOS to sub-servicer Cenlar FSB’s servicing platform, a July news release indicated.

Cenlar Senior Vice President for Business Development Lori Pinto explained that lenders are learning about the potential profits from maintaining servicing rights, and Cenlar’s subservicing helps prevent layering on fixed operational costs. Like with NYLX, the integration was prompted by both companies’ designation as preferred Lenders One vendors.

Calyx Software also sees revenue opportunities for its customers in loan servicing based on a recent news release unveiling an alliance with Servicing Solution LLC. The arrangement enables mortgage bankers to utilize a hosted servicing option without the need to add staff or hardware.

The Dallas-based technology provider said last week that an interface update to The Calyx Network increased by four the number of service providers that originators can connect to directly from the company’s LOS, Point. The added vendors are Informative Research, ING Mortgage, Loan-Score Decisioning Systems and Schmidt Mortgage.

Last month, Calyx said it added Northwest Title Co. to the network, while North American Title Co. was added in July.

Two months ago, Calyx announced the launch of a series of free Webinars to help customers better understand the company’s technology. Before that, it launched MyCalyx, providing Web access to Calyx account administration.

Enhancements to Encompass360 announced by Ellie Mae on Aug. 26 include more than a dozen added or upgraded features. Ellie said compliance, digital document management and authorized multi-party access were the areas impacted by the enhancements.

A month earlier, Pleasanton, Calif.-based Ellie reported the addition of PHH Mortgage to its network of vendors connected to Encompass360 — providing direct access to automated loan pricing from PHH. Customers of the Mt. Laurel, N.J.-based lender utilize the PHH Mortgage Speedy Online Application and Response — or S.O.A.R. — LOS for loan locks and real-time status updates.

“Our business partnership and integration with Ellie Mae’s Encompass360 loan origination system is one of the first its kind,” PHH Mortgage Executive Vice President of Sales Mike Dirrane said in the statement. “This relationship is only being offered to a group of preferred Encompass360 customers that have demonstrated their ability to write the quality of business that aligns with PHH Mortgage’s standards.”

Avista Solutions recently announced that its LOS had been integrated with Kroll Factual Data. The nine-year-old company reports that it added a record 23 new customers during the six months ended April. Active users stood at more than 61,000.

Document preparation services have been integrated into Del Mar DataTrac Inc.’s automated lending solution, the San Diego-based company said earlier this year. Through vendor partner Document Express, Del Mar users can order their initial disclosures, loan closing documents, flood determinations and high-cost loan analysis form the DataTrac screen.

Sales of OpenClose Mortgage Software’s mortgage lending software were “significantly higher” during the first five months of this year. The West Palm Beach, Fla.-based firm said year-to-date May 31 volume had already exceeded sales for all of 2009.

OpenClose attributed the growth to a “huge shift” to small banks and credit unions whose technology was inadequate for the spike in residential originations. The outdated software also failed to adequately address today’s regulatory requirements.

QuestSoft claimed in an Aug. 18 statement that its mortgage compliance software, Compliance EAGLE, has been integrated into more than 20 loan origination software platforms. The share reportedly accounts for more than a third of U.S. mortgage originations by banks, credit unions and mortgage companies.


Mortgage Daily Staff


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