2012 Loan Originator Survey – Service Providers

The 2012 Loan Originator Survey looked at which service providers are utilized most by mortgage loan officers. Among four categories of service providers reviewed were appraisal management companies, loan origination system developers, product and pricing engines and wholesale lenders. Among mortgage service providers, Mortgage Daily advertisers had significant market share.

Appraisal Management Companies
Recent rules and regulations have prompted many originators to rely on appraisal management companies — or AMCs — for appraisal reports.

Among AMCs, StreetLinks was named most-used by 14 percent of originators — a bigger share than any of its competitors.

StreetLinks is a Mortgage Daily advertiser.

Next were LenderVend, Nationwide Appraisal & Settlement Network, and Real EC — each with a 4 percent share. Nationwide is also a Mortgage Daily advertiser.

After that were ACT Appraisal Co., al a mode and Settlement One — each with a 3 percent share.

Loan Origination Systems
Originators manage the loan process through a loan origination system. LOS products automate the record keeping process, alert users to significant events and produce and manage forms that are necessary to fund a home loan. They also help originators comply with laws and regulations. Users can get a snapshot of loans in process and improve communications with other parties and vendors using the platforms.

Among participants in this survey, Calyx Software’s Point was the most-used LOS, cited by 48 percent of survey participants.

Calyx is a Mortgage Daily advertiser.

With a 27 percent market share, Ellie Mae’s Encompass360 was No. 2.

Ellie also advertises with Mortgage Daily.

A 2 percent market share each was indicated for Lenders Processing Service and Byte, while many of the 22 percent who selected “other” indicated that they utilize a proprietary LOS.

Product and Pricing Engines
Mortgage rates from multiple lenders can be obtained and managed with a product and pricing engine. Originators can compare different program options for borrowers using PPEs, while mortgage brokers can shop for the lowest rates among multiple wholesale lenders.

Optimal Blue ranked as the most-used PPE, with a 24 percent market share. Data from the Plano, Texas-based company is now used to power Mortgage Daily’s Mortgage Market Index.

LoanSifter followed with a 13 percent share, then the 9 percent share at NYLX’s Loan Decision and 7 percent for Mortech Inc.’s Marksman. Mortech is a Mortgage Daily advertiser.

iServe’s PriceMyLoan had a 4 percent share, and LXE Software Inc.’s LoanXEngine had a 2 percent share.

Wholesale Mortgage Lenders
Mortgage brokers were dealt several blows in 2012 with the loss of several big wholesale lenders such as Wells Fargo Home Mortgage, which departed from the wholesale lending channel in July; Capital One Financial Corp., where a decision was made in April to shut down third-party lending at acquired subsidiary ING Mortgage; and Citigroup Inc., which disclosed in February that CitiMortgage Inc. would abandon mortgage broker originations.

Prior years saw most other major lenders exit the broker channel.

Among the originators who identified wholesale lenders, Flagstar Bank, FSB; Freedom Mortgage and United Wholesale Mortgage were equally cited as the most-used wholesalers.

Freedom Mortgage advertises with Mortgage Daily.