The automated underwriting systems of Fannie Mae and Freddie Mac could be worth up to $500 million, according to one veteran mortgage technology analyst.
Jeff Lebowitz, who writes the annual MORTECH report on industry trends, recently estimated that the AU systems — Loan Prospector (Freddie) and Desktop Underwriter (Fannie) — generate revenue of $200 million to $250 million a year.
"You could sell them for one- to two-times revenue more or less," he said. In other words, based on Lebowitz's numbers, the systems, at best, could fetch $500 million.
Some members of Congress would like to see the GSEs dismantled over time, but little attention has been paid to the details of an actual liquidation and what to do with their intellectual property rights, which include the AU systems.
