New technology developed by mortgage software vendor LoanLogics aims to automate and streamline closed-loan purchasing and quality control processes for correspondent investors.
The correspondent investor technology, launching next week, will be a new module within LoanLogics' existing LoanHD quality control and analytics platform. The module combines a variety of correspondent investor tasks, including new seller applications, product pricing and eligibility, prefunding audits, pipeline management and loan funding/boarding.
"It's going to be a much more integrated platform," said David Lykken, a partner at consulting firm Mortgage Banking Solutions who has been involved with a bank mortgage investor that's testing the product.
LoanLogics seeks to position the technology as an alternative to the piecemeal approach that investors typically use, oftentimes through the combination of a highly-customized loan origination system, product and pricing engine, due diligence review services and a loan seller portal, said Brian Fitzpatrick, CEO of the
"This is an alternative to what's been going on in the industry which is you've got to buy an LOS throw away two-thirds of it, and you have to customize the one-third to do correspondent," he said in an interview.
"Our system is designed for this purpose, therefore all functionality is applicable," Fitzpatrick added.
In addition to the process efficiency of a single system, Fitzpatrick said the module also helps investors manage Consumer Financial Protection Bureau compliance requirements.
"CFPB vendor management requirements are applied to one vendor, not four," he said.
The new module is meant to serve correspondent investors who buy loans from mortgage originators, but it also "solves a lot of issues for the seller," he added. Lenders can interface with the module through their existing LOS and other technologies.
"The sellers right now, they all complain that it's not easy to do business with buyers and one of the reasons they complain about it is because ultimately it's too difficult and it creates a lot of funding delays that
Other industry vendors have developed tools and technology specifically for correspondent investors, including LOS vendor Ellie Mae and its
And there's certainly demand for technology to improve integration and interactions between correspondent originators and investors, said Bill Lehman, a mortgage consultant at CC Pace.
"Could somebody come in and do something else that would improve life for both parties? That would be a win for both sides. It's been tried," he said.
In addition to the new investor module, LoanLogics acquired certain assets of RexHub, a maker of software for real estate appraisal management, LoanLogics announced in a press release. The companies did not identify which RexHub assets that LoanLogics acquired. Other terms were also not disclosed.
Among the features of RexHub's appraisal compliance software are tools that notify appraisers when their state licenses are set to expire and keeps appraisers from receiving new orders until an expired license is renewed.
— Andy Peters contributed to this report.
