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1 Summer 2014 mortgagetechnology.com Exploring Return on Automation TOP SERVICE PROVIDERS C1_MTMay14 1 5/1/2014 2:25:31 PM

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3 Contents COVER STORY 12 Top 50 Service Providers Mortgage Technologys annual list recognizes vendors that demonstrate excellence in four categories continued advancement of technology and services, viable revenue model and value proposition, exceptional customer service and unique impact on the industry. Features 20 Lead Gen Logistics By Ted Cornwell Customer relationship management technology and new regulations require lenders and loan officers to re-evaluate how they manage the ownership and Columns use of lead sheets. 4 Machine-Readable Disclosures By Tim Armbruster Standardized file formats are sorely needed to scale mortgage disclosure document technology. 8 Better Mortgage Marketing By Thomas Ward Lynch Building connections online makes borrower data more useful for marketing loans. 10 The Power of People By Len Tichy Large technology initiatives fail without the right people to 10 20 guide the effort. Inside 2 Editors Note What it takes to be named a Top 50 Service Provider. 8 www.mortgage-technology.com 001_MTMay14 1 5/2/2014 5:25:41 PM

4 editorsnote Editor Austin Kilgore Group Editor Marc Hochstein Making the Grade Originations Editor Brad Finkelstein Capital Markets Editor Bonnie Sinnock Copy Editor Glenn McCullom Editor at Large Mark Fogarty Contributor Ted Cornwell Art Directors Scott Valenzano Kyung Yoo-Pursell Mortgage Technologys annual vendor list thats now known as the Top 50 Service Providers Group Editorial Director, Banking Richard Melville VP & Group Publisher Tim Murphy began in 2002. And while the lists format has changed over the years, its long been an honor Northeast Adv Director Steve Schloss 212-803-8829 highly coveted by the industrys most success- Midwest/Southeast Adv Managers Justin Nathan 212-803-8671 West Adv Managers Mark Majors 312-282-8312 ful and innovative technology and services Marketplace Manager Steve Gallego 212-803-8822 companies. With nearly 100 companies vying Executive Director, Print & Digital Michael Candemeres for one of 50 spots on the list, what does it takes Manufacturing & Distribution to be named a Top 50 Service Provider? Production Manager Eugene Moccia It may seem trite, but as the saying goes, 80% of success is showing Marketing Director/ Jeannie Nguyen Banking & Capital Markets Groups up. Incomplete nominations or submissions whose answers dont ad- Group Creative Director Hope Fitch-Mickiewicz equately respond to the question only hurt an applicants cause. General Manager, Digital Content Paul Vogel Customer Service 800-221-1809 The MT editors that comprise the judging panel each bring unique Reprint Services Howard Gilbert perspectives to the evaluation process. But they all are looking for 212-803-8367 Fax 212-843-9624 nominees that provide precise and demonstrative examples of their latest achievements and can explain in detail the factors that make their organization unique particularly when the vendor is in a highly-competitive segment of the mortgage technology industry. And since its an annual list, the judges pay special attention to nominees CEO Douglas J. Manoni most recent accomplishments. CFO Rebecca Knoop EVP and Managing Director, Karl Elken The final list ends up including a mix of established industry heavy- Banking and Capital Markets weights, vendors with a niche technology or service, and a few rising EVP, Chief Content Officer David Longobardi EVP & managing director, Adam Reinebach upstarts. The Top 50 Service Providers list is a subjective contest and no professional services Group doubt, some readers will disagree with all of the judges selections. Chief Marketing and Digital Officer Minna Rheeo SVP, Conferences John DelMauro If theres a silver lining for the vendors that dont make the list, its SVP, Human Resources Ying Wong that the nomination process exposes the judges to many companies and Office Management and products that may not have been ready for this years list, but with SourceMedia, Inc., One State Street Plaza, 27th Floor, New York, NY 10004 time, have the potential to make a big impact on the industry which TEL: 212-803-8200 FAX: 212-564-8897 e-mail addresses use [email protected] in turn ensures that the Top 50 Service Providers list continues to be a competitive contest every year. AUstin KiLGore [email protected] ADViSORy BOARD Tim Anderson Ann Fulmer Gagan Sharma DocMagic Interthinx BSI Financial Services Christos Bettios Harry Gardner John Walsh First American Financial Ellie Mae DataQuick Vladimir Bien-Aime Robin Hannah Kim Weaver Global DMS Wells Fargo Fiserv Home Mortgage Brian Boike David Zugheri United Shore Envoy Mortgage Financial Services Mortgage Technology Summer 2014 C E L E B R AT I N G 0 Y E A R S 002_MTMay14 1 5/5/2014 9:09:00 AM

5 Dodd-Frank, competition, consumer demands where do you begin? Navigate industry changes and accomplish your critical priorities with one proven lending platform. Ease compliance and reduce regulatory risk Compete more effectively to capture mortgage volume Satisfy all borrowers face-to-face and todays digital consumers With the Mortgagebot platform, D+H can help your community bank take its lending business to the next level so you can focus on serving your customers. We will assist you every step of the way. To learn about MortgagebotPOS or the next generation loan origination system, MortgagebotLOS, visit our website at dh.com/beginhere9. 877-861-3354 2014 D+H USA Corporation. All Rights Reserved. Mortgagebot, MortgagebotPOS and MortgagebotLOS are trademarks of D+H USA Corporation. D+H is a trademark of D+H Limited Partnership. 003_MTMay14 1 4/30/2014 3:28:32 PM

6 TechOUTLOOK By Tim Armbruster Machine-Readable Disclosures Standardized file formats are sorely needed to scale mortgage disclosure technology. The consumer financial proTecTion bureaus final rule on the new integrated mortgage disclosures documents has been a hot topic for some time in the industry. But the recent release of version 3.3 of the Mortgage Industry Standards Maintenance Organizations Reference Model, which includes new data points and structures related to several recent regulatory and reporting require- ments, hasnt received as much notoriety. And flying even lower under the radar is Fannie Mae and Freddie Macs effort to develop a Uniform Closing Dataset, to support the closing disclosure forms from the CFPB. Regardless of the amount of buzz each has received, it turns out there is one central theme in all of these initiatives: the need for standardized, machine-readable, digital versions of the Loan Estimate and Closing Disclosure, the forms that will soon replace the Good Faith Estimate and HUD-1 Settlement Statement, respectively. Because of the timing of these industry and regulatory changes, the industry as a whole would be well-served to implement these standards in the next 12 months, because creating machine-readable forms will go a long way in ensur- perspecTives ing that everyone in the industry gets on the same page. There are essentially two kinds of readable information, hu- man-readable and machine-readable. Human-readable data is a representation of information that can be naturally read by humans, like a PDF. Machine-readable information, also called metadata, is often misinterpreted and misunderstood, but the concept is easy: information that a computer can understand. The current and only true industry-standard format for the GFE and HUD-1 documents is a human-readable ver- sion. Every lender and title company uses the same versions of those documents, even if in printed form. The paper and PDF versions of these forms is meant to be read by humans and is the only guaranteed representation found in every loan file. To date, there is no industry-wide adoption of a machine-readable format for these documents. Since the standard for GFE and HUD-1 documents is a human-readable one, any technology that uses data from these forms and hopes to have widespread adoption in the industry must either read the documents as a human would us- ing optical character recognition technology, or build custom integrations and data mappings with every system that uses the documents. While OCR has come a long way, its by no means perfect and should not be considered an viable technology for exchanging data, and developing a system of integrations is expensive to build and maintain, and often is virtually impossible to scale. Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 004_MTMay14 1 5/1/2014 9:47:11 AM

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8 techOUtLOOK The absence of a machine-readable TThe Closing Disclosure differs from XML standards for appraisal files format for the GFE and HUD-1 presents the HUD-1 in that it does not contain existed long before the GSEs imple- many challenges in the mortgage indus- numerical line numbers. This may not mented the UAD, but most were pro- try. For example, HUD-1 docu- seem like a problem on prietary formats. But now that Fannie ments are used by investors in the surface, but consider and Freddie require lenders and their evaluating individual loans and The the myriad technologies appraisal management companies to loan portfolios. HUD-1 data is absence of that read data from the submit electronic appraisals, the UAD compiled with other data and a machine- HUD-1, and have long and UCDP effectively made it manda- run through analytical models used line numbers for tory for the industry to deliver apprais- to assess their value and risk. readable compliance checks, map- als in a machine-readable format. This data often gets assem- format for ping, transmission, stor- The industry can expect the same bled using OCR, and mistakes the GFE and age, and business rules. effect for the implementation of UCD in the technology mean poten- All of this technology making it effectively mandatory tial investment mistakes by the HUD-1 must be rewritten, but for title companies and lenders to de- secondary market in pricing and presents without using standard liver the new disclosure forms in a pooling loans. If a machine-read- many line numbers. Business machine-readable, MISMO format. able version of the HUD-1 were standard, software could read challenges in rules and data must be re-mapped, but to what? Every technology vendor, lender and title company will be modifying the values from the HUD-1 form the mortgage Without line numbers, the software that generates disclo- using the reliable XML format industry. the default is to map to fee sures in the next 15 months to meet with no mistakes, every time. names, which is not reli- the requirements of the CFPB. In addi- For the title industry, creating able without a standard. tion, MISMO has released an industry a HUD-1 document represents MISMO 3.3 helps with standard, machine-readable format, a massive effort of data collection and this, and there are several separate indus- and it is inevitable that the GSEs will input from the lender and various other try initiatives that make this the optimal mandate the use of that format. parties, including third-party service time for lenders, title companies and These factors make it logical for the providers and data services like property industry technology providers to imple- industry to implement MISMO 3.3 as tax reports. This data collection is both ment machine-readable formats of the the underlying data structure and de- time-consuming and error-prone. Loan Loan Estimate and Closing Disclosure. fault method of transmission for any terms, for example, are often transmitted In an early draft, the CFPB required Loan Estimate and Closing Disclo- from a lender to a title company in the the industry to implement machine-read- sure data thats stored or exchanged form of closing instructions (via a hu- able versions of the forms, but the re- between parties. This approach will man-readable document) and then re- quirement was pulled from the final rule. allow the industry to avoid a second keyed by the title officer into the HUD-1, Along with the CFPB changes, MISMOs large initiative to adopt MISMO 3.3. another human-readable document. Residential Reference Model Version 3.3 Whether its the reliable transmis- Furthermore, industry regulations includes XML definitions for the new dis- sion of data, the ability to perform hold lenders responsible for both creat- closures. In short, the mortgage industry mass-scale loan data analysis or simply ing GFEs and ensuring that fee quotes now has a format to follow. Unfortunate- the ability to work more efficiently, the accurately match the costs detailed on ly, there is no mandate to follow it. entire industry can benefit from a sin- the HUD-1. But the final GFE is only a The GSEs are implementing the UCD gle, uniform, machine-readable format human-readable document, which is as part of the Uniform Mortgage Data for two of the most important data- transmitted to the title officer who man- Program, which uses MISMO standards centric forms in the mortgage process. ually re-keys the fees in the operations to represent the Closing Disclosure Most industry participants have platform to compare it to the HUD-1. data. Does this mean that there will be either started or are planning to start Lenders and title companies could more a mandate to implement machine-read- implementing the new disclosures, efficiently produce accurate and compli- able versions of the new forms in the and must complete this by August ant disclosures by using a machine-read- future? The answer is an implied yes. 2015. Implementing machine-read- able format to exchange data. To understand how this direction from able documents now will make ev- In short, machine-readable, industry- the GSE may affect the industry, its help- eryones life much easier. standard formats are sorely needed for ful to examine how the UMDPs Uniform increased accuracy, improved efficiency Appraisal Dataset and Uniform Collateral Tim Armbruster is the chief technology and scalability of industry technology. Data Portal affected the industry. officer of La Jolla, Calif.-based ClosingCorp. 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10 TechOUTLOOK By Thomas Ward Lynch Wh forma Better Mortgage Marketing of littl ing fo tact i gives Building connections online makes borrower an add With data more useful for marketing loans. liver ju lender keting despis marke is likel Back in 2002, The Tower Group performeD a sTuDy on Bank To products with the goal of uncovering how they market to consumers and what signifi- data cance, if any, mortgages had to their chief marketing officers. At the time, the studys custom authors concluded that mortgages were not the anchor product that it would become to a p for banks in the years ahead. Those years have come and gone now, and mortgage the las products never became the marketing anchor that many hoped they would. help t There are a number of reasons for this. At the time the report was written, the five for a largest national banks originated 42% of all new mortgage loans. By 2009, that number tion is had risen to 63%. Smaller banks found it very difficult to compete for mortgage business, ping which was much harder to originate than other products. Securitization of mortgage- file backed assets had created a cadre of specialized firms for everything from loan sourcing more to credit risk management, making it even harder for the mid-tier banks to compete. depart Perhaps most importantly, there is no such thing as brand past c loyalty in the mortgage lending business. Despite the trans- tery. B action being one of the largest that consumers engage in, it Ban happens rarely. When a new loan is needed, only a few bor- everyw perspecTives rowers out of every hundred will return to the same lender. ing co As it turned out, banks didnt need to focus on mortgage YouTu marketing in order to get more mortgage business. As in- netwo terest rates fell through the floor and the requirements to and m get a loan loosened, borrowers rushed back to the banks ing w for cash-out refinance loans. Even after the crash, lenders great d stayed busy, rewriting loans under government programs as borrow part of the recovery. But those days are ending. chang Today, most banks find themselves in a very different or ser marketplace. There is significantly less competition from the relatio nations largest banks. These institutions have moved out of best n wholesale lending, cut back on their branch networks and Fina are struggling to scale compliance teams in an effort to ensure new originations most meet the new rules set under the Dodd-Frank Act. rough Additionally, the refinance business is falling off. Refinance loans accounted for nology 64% of all new bank mortgage business at the beginning of the year, according to nature Freddie Mac, but they are expected to fall to only 38% by years end. Lenders, who has tr are already facing higher compliance costs, are looking for ways to make up that as sacr drop in business. Some wonder if the answer isnt hiding in their existing database new of past mortgage customers. If thats the case, Tower Groups old hypothesis may other prove to be correct in the end; the mortgage could serve as the banks anchor prod- risks. T uct for more business. But Im betting it wont. appro Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 008_MTMay14 1 5/1/2014 9:47:15 AM

11 TechOUTLOOK While lenders have a great deal of in- New technologies have made it easier Mortgage originators already formation about customers, most of it is and safer to share consumer data through know the vast majority of borrow- of little help when it comes to prospect- online networks, with full transparency ers go online before they ever reach ing for new business. The con- and the permission and out to a lender for a new mortgage. tact information, for instance, gives the marketing department Using a data active participation of the consumer. But can lenders But the borrowers are out there, and mortgage marketers should embrace an address and a phone number. onboarder sell mortgages when their the technologies that allow them to With the first, a lender can de- allows a borrowers are shopping know where their prospect is going liver junk mail. With the latter, a for something else? and engage with them there. lender can indulge in the mar- lender to Lenders have tradition- So how does a bank connect the in- keting method that customers reach out to ally sought out new busi- formation it has in its database with in- despise most, the evening tele- prospective ness in one of three ways: formation about their customers thats marketing call. Neither approach buying leads, participating scattered across the Web? Data on- is likely to bear fruit. borrowers in rate table searches or at- boarding is a fast-growing technology Bank To make matters worse, the as they roam tempting to get borrowers and a powerful addition to a marketers ignifi- data lenders have about past the Web to engage with them on digital toolbox. It allows marketers to tudys customers is outdated. It all refers their websites. The other combine the information they have in ecome to a point in time right around serving up strategy used, and typi- their own customer relationship man- rtgage the last mortgage, which will not appropriate cally the most important agement systems with other informa- help them qualify the borrower content. in origination shops, is tion about their clients from all over he five for a new loan. Their only op- effective call center man- the Web. The result is a 360-degree umber tion is to pull a new credit report agement. But fewer leads view of customers that not only aids siness, pinging their customers credit are calling in. in the facilitation of the next mortgage, tgage- file or interrogate their customers for Lenders have operated under the as- but potentially all of the other prod- urcing more information. From the marketing sumption that you have to catch the ucts and services the bank offers. ete. departments perspective, what these borrowers interest at just the right The right data onboarder will pro- brand past customers are up to now is a mys- time. Otherwise, they will never re- vide a service that is fast but also of- trans- tery. But its not a mystery to everyone. member your pitch when it comes fers a high match rate a measure of e in, it Banks customers, like consumers time for their next loan. There is some how much of the customer data can w bor- everywhere, are constantly consum- truth to this, so lenders tend to wait for be successfully onboarded for target- nder. ing content online, watching videos on a borrower to enter the buy zone and ing, content optimization and other rtgage YouTube and sharing photos on social then engage, often without ever check- uses. Precision is critical. This pre- As in- networks. All of these online publishers, ing their own database to see if they serves data integrity and is built on a nts to and many more, are regularly interact- know anything about the prospect. strong matching algorithm. Data se- banks ing with consumers and collecting a Meanwhile, the rest of the world has curity and privacy are a top concern, nders great deal of information that the banks moved to a far more proactive approach as is the number of online partners ms as borrowers are happy to give up in ex- to customer engagement. New technolo- the data onboarder can send data to. change for information, deals on goods gies have allowed the marketer to reach Using a data onboarder allows a fferent or services or just to build a stronger out through online networks, where their lender to reach out to prospective bor- m the relationship with brands they love. The prospects are already spending time, to rowers as they roam the Web, serving out of best news: its available to lenders. engage with them before, during and up appropriate content. The engage- s and Financial services companies, for the after the prospect enters the buy zone. ment helps build trust and strength- ations most part, have steered clear of the Perhaps most importantly, new technolo- ens the relationship that will lead to rough waters of the advertising tech- gies have made it possible for lenders the next loan. By combining what the ed for nology industry. Being risk-averse by to quickly and easily update what they lender already knows about its custom- ing to nature and working in an industry that know about past borrowers, giving them ers with what it can learn by teaming , who has traditionally viewed customer data a much better chance of engaging with up with other data sources, lenders can p that as sacred, lenders havent explored these them when the borrower is ready. make full use of its existing portfolio as abase new technologies to the extent that This can give the lender many more a source of future business. s may other industries have, due to perceived ways to engage with prospects, in many prod- risks. The result has been an old school more places. All they have to know is Thomas Ward Lynch is CEO of Kansas City, approach to new mortgage sourcing. where their borrower is going online. Mo.-based Empire Media Partners. www.mortgage-technology.com 009_MTMay14 2 5/1/2014 9:47:28 AM

12 TechOUTLOOK By Len Tichy Gra es betw The Power of People projec menta for co enoug Large technology initiatives fail without the right challen increa people to guide the effort. rising Ob Dodd- or a su policy small There are sTill people working in The home finance indusTry pariso who remember when mortgage banking wasnt all about technology. That was yes- ment. terday. Today, lenders may still think of themselves first and foremost as marketing, tives, t sales and customer service organizations, but they are really information manage- getting ment companies that package forensic data and documents into investment-qual- ure is ity, fully compliant assets that are traded in the secondary market. Wh Unfortunately, delivering effective IT infrastructure to the business often requires variou orchestrating big, complicated implementation projects when there is no one in the it all organization who has the time or the expertise to actually do the work. That i As anyone who has been through a large transformational project knows, big that sp projects bear little resemblance to small ones. While small projects can be stimulat- people ing and fun, big projects usually have countless dependencies that straddle the op- to new erations of multiple departments, if not the whole company. in the People must communicate constantly even through the subjec last week of the month with closings at risk, vacations and boots- holidays, and typically utilizing all manners and means of are cri perspecTives meetings, conference calls, emails and texts to stay in synch. Pro And even then, due to the complexities, dependencies, and stand sheer magnitude of the work, it may not be enough to keep of the it all clearly understood and on track. how b On top of all that is the deadline pressure to complete chang each and every project thread, and that inevitable sinking They m feeling that comes from realizing that the projects overly- nology optimistic timeline estimates include no slack for contingen- suppo cies because problems will never occur. But of course, In they always do. Sound familiar? It should. It happens every- work where, regardless of the industry. of an Study after study on project failure risk report roughly cumb the same findings: The bigger a large, complex, IT implementation project, the and d more likely the initiative will fail to be delivered on time, on budget and with all conve expected features and functions. In 2008, Stratmor Group conducted a study of An IT project successes and failures in the mortgage industry, using loan origination LOS v system implementation as a proxy for large complex projects. The study found all of the mortgage industry faired about the same as others when measured against tions these three criteria. In fact, roughly 70% of large, complex IT projects either fail alread (i.e., are abandoned or never used) or are challenged (i.e., are delivered late, over tasks budget and with less than required capabilities), as consistently detailed in the with Standish Groups annual Chaos Report. quirem 10 Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 010_MTMay14 1 5/1/2014 2:42:26 PM

13 TechOUTLOOK Granted, there are material differenc- Expert mortgage operations managers Of course, actual programming es between the types of problems that IT who are tasked with validating the new only represents 25% or less of the projects aim to solve, and an LOS imple- systems features and functions are work- total effort it is the requirements mentation is not a perfect proxy ing properly dont typi- development, specification writing, for comparison. But its close cally know how to set up vetting with stakeholders, testing, enough to shine light on the Critical test cases, test scripts, and and training that adds extra time. ht challenges that lenders face with implementation report system defects with increasing frequency, thanks to support work adequate rigor and disci- Costly implementation errors often first crop up in gratuitous, rising compliance requirements. pline commensurate with thousand-question lender RFPs and Obviously, rolling out a must be the complexity of an LOS. grandiose vendor demos, driving Dodd-Frank compliance update, done with And if testing the new wheel-spin, rework, and usually, or a subsystem to enforce a new discipline system means a weary finger-pointing all of which cause policy change are the types of manager grabbing some delays and erode working relation- small projects that pale in com- and focus, files (and coffee) after 6 ships. And perhaps surprisingly to sTry parison to a total LOS replace- and talented p.m. to try out some fea- many, implementation success is not as yes- ment. But even with these initia- internal tures to see if they work, based solely on the capability of the keting, nage- tives, there are key strategies for getting better results when fail- resources are atesting lender isnt adequately the software to trap software a lender selects, or on the size of the vendors organization or -qual- ure is an existential threat. needed to defects, and is very likely history, although both are factors. While IT projects may involve do it right. to get some big, ugly sur- Success has much more to do with quires various systems and processes, prises downstream. Criti- the team that the lender deploys to in the it all comes down to people. cal implementation sup- oversee and manage the project, the That includes those at the top port work must be done quality and experience of the vendors ws, big that sponsor and own the results, the with discipline and focus, and talented support team and the chemistry be- mulat- people at the bottom who must adapt internal resources are needed to do it tween the two. And the best project he op- to new workflows, and especially those right. Pixy dust will not work. results are enjoyed by lenders that pay mpany. in the middle the key managers and There is not a commercial-off-the- heed to factors the Standish Group de- h the subject-matter experts who make up the shelf LOS available that will meet every tails in the Chaos Manifesto: The in- s and boots-on-the-ground project teams that scalability, flexibility and functionality crease in success is a result of several ans of are critical to success or failure. requirement of every lender, especially if factors, including looking at the en- synch. Project teams must clearly under- the lender is a multichannel originator. It tire project environment of processes, s, and stand the mission and the complexity is a monumental challenge for any LOS methods, skills, costs, tools, decisions, o keep of the problem, not to mention exactly vendor to both meet all of these require- optimization, internal and external how business works now and how it will ments and make money doing so. And influences, and team chemistry. mplete change after the project is completed. finding out after the contract ink has In addition, the executive sponsor nking They must also know how the new tech- dried and the rollout has begun that a of an initiative plays a pivotal role in verly- nology works, how to test it, and how to lenders day-one must-have functions are its success or failure. As the Standish ngen- support end-users as they adapt. not working is very bad for both parties. Group explains, The single most ourse, In the case of replacing an LOS, this Functionality gaps drive delays. They important advancement to improve every- work begins as a glimmer in the eye can be detected upfront, but not by re- project success rates is the increase in of an executive who decides the in- quest-for-proposal responses and glossy competency of the executive sponsor. ughly cumbent system needs to be replaced, demos that only serve to excite the troops. In our opinion, the executive sponsor ct, the and does not end until the last user is Far more likely, there will be major, unex- is the owner of the project. ith all converted to the new system. pected potholes (read: contingencies) that When it comes to complex IT dy of Any CEOs or COOs who think an neither the lender nor vendor anticipate. projects, superior software can never nation LOS vendor will either painlessly do When the need to build-out extra overcome the limitations of a medi- found all of this for the lender or that opera- functions is detected late in the process ocre implementation team. But great gainst tions managers and staff who are after vendor demos, lender vetting and teams can overcome the limitations fail already burdened with the day-to-day fine-tuning and pre-rollout testing ev- of mediocre software. , over tasks of processing and closing loans eryone involved is surprised, and then n the with and increased compliance re- amazed, at how long it can take to sim- Len Tichy heads the IT advisory services practice quirements are kidding themselves. ply program the missing functionality. at Peachtree City, Ga.-based Stratmor Group. www.mortgage-technology.com 11 011_MTMay14 2 5/1/2014 9:47:54 AM

14 T he companies that are named to the Mortgage Technology Top 50 Service Providers list are recognized for their accomplishments in four criteria continued advancement SERVICE PROVIDERS of technology and services, viable revenue model and value proposition, exceptional customer service and unique impact on the mortgage industry. As an annual list, the Top 50 Service Providers puts particular emphasis on a mortgage industry vendors achievements over the past 12 months April 2013 to March 2014. Inclusion in a previous years list is not a metric for making the 2014 list. Service providers responded to an extensive questionnaire in order to be considered for the list. Nearly 100 companies applied, and nominations were judged by a panel comprised of Mortgage Technologys editorial staff, which holds sole discretion in determining the nominees named to the list. 12 Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S www.mortgage-technology.com 13

15 TOP SERVICE PROVIDERSl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l "-".0%& $"14*-0/ $0.1 BMBNPEFDPN DBQTJMPODPN DPNQM /BQMFT 'MB 4BO'SBODJTDP $BMJG #VSMJOH Property valuations and mortgage technology provider a la The latest version of Capsilons DocVelocity EDM system in- The fra modes flagship Mercury Network platform was expanded with cludes batch delivery for users to package and deliver docu- er tool a iOS mobile app for appraisers to accept, decline, or negotiate ments from many loan folders at the same time. The desktop to con fees. In addition, a new electronic disclosure function allows application also has a new local page-caching feature to accel- lender lenders to send digital appraisals to borrowers, while automati- erate page streaming, and its complementary mobile app was violati cally creating a full audit trail. updated to enhance remote access to documents. condu "$$&/563& $-&"3$"1*5"- $0.1 BDDFOUVSFDPN DMFBSDBQJUBMDPN DPNQM %VCMJO *SFMBOE 5SVDLFF $BMJG "SMJOHU The multinational consulting, technology and outsourcing firm Clear Capital is providing Freddie Mac with a customized ver- The la acquired Denver-based Mortgage Cadence in August. The LOS sion of its ClearQC valuations review software to perform au- tem u and document preparation software developer released a POS tomated checks of the appraisals it receives from lenders. The flow o system that emphasizes borrower self-service functions, while AMC and valuations technology providers system leverages qualit sister unit Zenta Mortgage Services provides origination and dynamic rules sets to model vast amounts of real estate market of LOS servicing fulfillment and investor services outsourcing. data into actionable information. analys "9"$03& $-04*/($031 $03& BYBDPSFDPN DMPTJOHDPN DPSFMP 4BO%JFHP $BMJG -B+PMMB $BMJG *SWJOF Built-in database adapters and HTTP Server APIs allow Axacore In addition to providing real-time, accurate quotes for settle- CoreLo to seamlessly transfer data and documents between its EDM ment services and recording fees and transfer taxes, Closing- lytics platform and lenders LOS platforms and other service provid- Corps SmartGFE was expanded with a tool called SmartOrder Swift/ ers, which eliminates the need for disparate applications to use to let lenders order services directly within the system. Clos- and ca multiple data entry points, and provides lenders with workflow ingCorp also added housing counselor listings for lenders to new c and administrative efficiencies. provide borrowers in compliance with new CFPB rules. ted loa #-"$,,/*()5'*/"/$*"-4&37*$&4 $0.&3(&/$&$0.1-*"/$&.0/*503*/( $031 CGLTDPN DPNFSHFODFDPNQMJBODFDPN FSFDPS +BDLTPOWJMMF 'MB .JTTJPO7JFKP $BMJG 8JMNJO Lender Processing Services and Fidelity National Financials Ser- Comergence Compliance Monitoring provides an automated CSC e viceLink unit were combined to create Black Knight Financial system for oversight and monitoring of third-party originators ing ele Services in January. In response to the CFPBs new servicing and appraisers by lenders and AMCs. Its online application sys- mately rules, the company led a joint-effort with its largest bank clients tem vets incoming originators and appraisers for identity veri- includ to collectively develop 20 new functions in its Mortgage Service fication, licensing status and criminal and financial sanctions, pany a Package system of record. and continues to monitor their status on a daily basis. promo #3"%'03%5&$)/0-0(*&4 $0.1-*"/$&4:45&.4 %"7*4 CSBEGPSETPGUXBSFDPN DPNQMJBODFTZTUFNTDPN EIDPN 4BO+PTF $BMJG (SBOE3BQJET .JDI 5PSPOU Rather than relying on comparable sales from three to five The document preparation technology vendor launched The Ca properties, Bradford Technologies CompCruncher aggregates Simplicity, a Web-based application for lenders to configure by acq data from hundreds of neighboring properties to validate ap- Compliance Systems dynamic rules engine to create custom and br praisers opinions and improve accuracy. Bradfords new Ap- documents. Lenders can preset the data points required on a pusha praiser Certified Evaluation is a desktop appraisal thats sup- document and see a real-time preview of how the changes will menta ported by regression analysis and includes a inspection report. be reflected in the final document. to pro 14 Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 014_MTMay14 3 5/2/2014 5:19:19 PM

16 lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll $0.1-*"/$&&"4& %&$*4*0/3&"%:40-65*0/4 DPNQMJBODFFBTFDPN EFDJTJPOSFBEZTPMVUJPOTDPN #VSMJOHBNF $BMJG *SWJOF $BMJG em in- The fraud and compliance software providers new FairnessAnalyz- Decision Ready Solutions developed a turnkey version of its docu- er tool uses preconfigured models, statistical reports and analytics servicing compliance platform that provides a low-cost, base esktop to conduct fair lending reviews and analysis of loan files to help configuration of the technology for community and regional accel- lenders identify and prevent potential disparate impact compliance financial institutions. Decision Ready also acquired REALServ, a p was violations. ComplianceEase also launched a platform for lenders to default servicing outsourcing firm and offers claims processing, conduct identity and Social Security number verification. collateral valuations and other fulfillment services. $0.1-*"/$&5&$) %0$."(*$ DPNQMJBODFUFDIDPN EPDNBHJDDPN "SMJOHUPO 7B 5PSSBODF $BMJG d ver- The latest version of ComplianceTechs Fair Lending Magic sys- DocMagics document preparation software was used to facilitate m au- tem uses a graphical user interface to represent the process- whats been billed as the industrys first e-signed FHA mortgages. s. The flow of risk assessments and monitoring. It also includes a data The company has also developed income verification tools as erages quality assessment tool that evaluates the quantity and quality well as lender- and borrower-facing mobile technologies that en- market of LOS and HMDA data and identifies the types of fair lending able touchscreen e-signatures and utilizes its existing LOS inte- analyses that can be performed. grations to automate the process of transferring loan data. $03&-0(*$ %0$65&$) DPSFMPHJDDPN EPDVUFDIDPSQDPN *SWJOF $BMJG *EBIP'BMMT *EBIP settle- CoreLogic completed its acquisition of property data and ana- Using a secure file transfer protocol service, DocuTechs ConformX osing- lytics vendor DataQuick and its sister company, Marshall & document preparation software can track and archive disclo- Order Swift/Boeckh, a provider of valuation services to the property sure and document changes electronically to provide lenders an Clos- and casualty insurance industries. CoreLogic also developed a audit trail of their document packages. Other system enhance- ers to new credit and prepayment model thats calibrated for QM-vet- ments include improved two-way data communication between ted loans and the GSEs Structured Agency Credit Risk bonds. DocuTechs system and the LOS platforms that its integrates with. $03103"5*0/4&37*$&$0.1"/: &-:/9 FSFDPSEJOHDPN FMZOYDPN 8JMNJOHUPO %FM $JODJOOBUJ 0IJP mated CSC expanded its e-recording footprint by nearly 20%, provid- A new account status feature in eLynxs consumer-facing inte- nators ing electronic recording capabilities in counties covering approxi- grated document delivery and e-signature platform provides on sys- mately 60% of the U.S. population. Technology enhancements details about a loans current status and definition of key mort- y veri- include reducing keystrokes and improving throughput. The com- gage terms. The company also added an electronic closing pro- ctions, pany also continues its advocacy work with state governments to tection letter into its closing platform that provides lenders ac- promote e-recording adoption where it is not yet available. cess to closing protection documentation from title insurers. %"7*4"/%)&/%&340/ &26*'"9 EIDPN FRVJGBYDPN 5PSPOUP 0OUBSJP "UMBOUB (B nched The Canadian technology provider continued its U.S. expansion The Spectrum Verification Services Platform provides a central figure by acquiring Lake Mary, Fla.-based Harland Financial Solutions hub for lenders to access the Equifax suite of verification re- ustom and brought it and its existing U.S. assets, Mortgagebot and Com- ports through a single Web interface or system integration. It d on a pushare, all under the D+H brand. The acquisition adds comple- also developed an investor loan review tool, enhanced its retro- es will mentary servicing and core banking software, and D+H continues active income verification service with additional automation, to provide origination technology to Canadian mortgage lenders. and launched a cascading tool to validate AVMs. www.mortgage-technology.com 15 015_MTMay14 4 5/2/2014 5:19:39 PM

17 TOP SERVICE PROVIDERSl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l &3/4516#-*4)*/($0.1"/: */%*40'5 FSOTUJOGPDPN JOEJTPGUVT "MCBOZ /: $PMVNCJB .E Ernst Publishing Co. expanded its product suite with a portal IndiSoft updated the document management functions included to track changes in recording fees and transfer taxes that would in RxOffice Premium Counselor, a module of its default servicing affect pending loans in a lenders pipeline and avoid costly RE- platform that provides automated loss mitigation workflows to SPA violations. Its custom fee engine streamlines third-party help housing counselors submit borrower modification packag- vendor fee management and its geocoding overlays provide es. It also added a new tool within its platform to help servicers granular local tax jurisdiction information. provide borrowers with post-modification counseling. '*$4 */5&3/"5*0/"-%0$6.&/54&37*$&4 DTDPN JETEPDDPN "EEJTPO 5FYBT %SBQFS 6UBI Following the overhaul of its residential mortgage LOS and servic- International Document Services boasts that nearly 52% of the ing system of record, FICS made similar enhancements to its com- document packages and 18% of 4506-T requests that lenders mercial servicing system that take advantage of Microsofts .NET generated with its technology were e-signed in 2013. The com- framework and Windows Presentation Foundation. Its suite of panys document preparation system, idsDoc, was integrated software serves community banks and credit unions and employs with additional LOS platforms and redesigned to include an a uniform interface to provide a consistent user experience. updated user interface and multibrowser compatibility. '*345".&3*$"/'*/"/$*"- *4(/ STUBNDPN JTHODPN 4BOUB"OB $BMJG 1BMN#BZ 'MB The title insurer and mortgage technology providers Web-based Mortgage technology and outsourcing services vendor ISGN portal provides desktop and mobile access to title orders, property created its Consumer Financial Protection Bureau Mock Audit data and real estate resources. First American also provides paper- to provide a turnkey auditing and due diligence review service less and mortgage document disclosure software, and its recently to midsize mortgage lenders and servicers. It also launched a acquired Interthinx division has implemented numerous compli- suite of products and services designed to help home equity ance updates to its line of risk mitigation products and services. lenders scale their business operations. '*4&37 -&/%&3-*7&/&5803, TFSWDPN MFOEFSMJWFDPN #SPPLFME 8JT (MFOEBMF $PMP Fiserv Lending Solutions launched LoanLink, a customized self- Technology and fulfillment outsourcing vendor LenderLive Net- service portal that lets pending mortgage borrowers access and work launched a correspondent lending unit and added due update their loan information in real time. It also built an in- diligence reviews and second-lien loan fulfillment to its offerings. tegration between its Common Origination Platform a single Its GuardianDocs document preparation unit expanded its docu- system to originate mortgage, consumer and business loans ment recognition capabilities through barcode reading, and mul- with its LoanServ servicing system of record. tiple optical character recognition components and workflows. (-0#"-%.4 -&/%*/(2# HMPCBMENTDPN MFOEJOHRCDPN -BOTEBMF 1B $PTUB.FTB $BMJG The collateral valuations technology developer partnered with a LendingQB developed a series of business transformation guide- national law firm to create monthly audits of changes to state-level lines that utilize lean manufacturing principles to help lenders AMC regulations. Global DMS also launched a website called AMC- reduce origination costs. These Lean Lending principles are match.com lenders to search for AMCs based on regional expertise built into the rules engine of its LOS to promote operational and service offerings. It also added new LOS integrations and ex- efficiency and regulatory compliance, which the vendor boasts panded mobile access to its eTrac appraisal management platform. can help lenders reduce technology implementation timelines. 16 Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 016_MTMay14 5 5/2/2014 5:19:59 PM

18 )"& " The Newsweekly for Americas Mortgage Industry

19 For Residential and Commercial Servicers JUNE 2011"! For Mortgage Lenders, Brokers, Correspondents and Wholesalers

20 capable retail mortgage website. That

21 market share now amounts to 991 of an o-based davis estimated 1,200 institutions possessing or The hundreds of thousands of foreclosed procedures should begin immediately upon the property goes under contract. enderson Corp. agreed to acquire on- seeking such a transaction-capable Web properties threaten to paralyze the hous- receipt of an order so that the property is The third step lenders and servicers could line lending specialist Mortgagebot from presence, said happ. ing industry as it struggles to regain a solid ready to market as soon as possible. All REO follow to end the housing crises is to have key What differentiates top-producinG fournier said the loan production spec- to their existing referral sources, develop nvestors for a cash price since Mortgagebots 1997 founding, footing. The far-reaching domino effect of title work must be reviewed, graded for any technology in place. mortgage originators from their peers is trum could be divided into three tiers. over new referral sources and database market- of $231.8 million, the deal drew applause the online share of mortgage originations the foreclosure blight hurts more than just title curative issues and posted for immedi- Employing an automated, Web-based that they have multiple customer acquisition a three-year period, the top producers origi- ing. all three were cited by at least 40% of at a time when many mortgage technology has grown from 1% to some 20%, happ the troubled borrower; it claims many jobs, ate access. The servicer and REO depart- system greatly enhances control, improves strategies, they have a higher level of product nated 430 loans on average with volume over respondents as a high priority. deals have amounted to distress sales. told NMN. which hurt state tax revenue, and makes it ment must work hand in hand, each having ease of use and significantly saves time. A knowledge and they perform value-added $96 million. surprisingly, few loan originators spend pectrum, which has owned and part- he said Mortgagebot Powersite is sup- more difficult for consumers to get credit. paperless system conveniently acts as a single pipeline management activities. What they The middle tier did 128 loans on average a significant amount of time on social net- nered with Mortgagebot over the past ported by without question the most But there is certainly light at the end of forum for all the multiple parties attached to dont spend their time on is administrative with volume of $27 million, while the bot- working or data mining. The study calls this five-plus years, said in the announcement sophisticated retail product and pricing the tunnel for the lenders and servicers that

22 the file to view the status and progression of activities and nor should they, said the chief tom third did just 66 loans on average with a slower-than-expected adoption of cus- that the sale price gave it an appropriate engine in existence. From the perspective enhance their internal efficiencies and are able

23 the loan and make any changes in real time. executive of Mortgage success source, hol- under $11 million in volume. tomer acquisition activities that many ex- of presentation to the consumers, we han- mdel, n.J. for the preceding 12 months, the top one- perts say will become increasingly important to resell REO properties quickly. Foreclosures Multiple production resources can work on david fournier, during a session and fol- third averaged 150 loans and $34 million in in the future. oth companies said Mortgagebot, dle all of the factors that conceivably affect are unfortunately inevitable, but through the the same file without having to wait hours or Mequon, Wis., will operate as a sepa- the pricing and eligibility of the loan. speedy resale of foreclosed homes to deserv- even days for a response on certain documen- low-up interview at the Mortgage Bankers volume. The second tier was less than half of fournier added that originators could rate division, that the purchase will every year we have a steady array of ing borrowers, we can restore property values tation from the many professionals involved association Loan production conference that on average, at 68 loans and $14 million, not ignore what consumer eyeballs are look- have little or no impact on the prod- new functionality, he continued. We have and bring an end to the housing crises. complete access to one anothers databases, in the loan, including the listing agent, selling in new York, said his observations were and the fall-off to the third tier was by half ing at now, when it comes to social media. ucts and services Mortgagebot current- more people dedicated to developing new By implementing the following mea- which ensures a transparent and timely clos- agent, mortgage broker, loan officer, lender, based on the results of an Mss study re- again, to an average of 35 loans and less than he said the top performers use three ly delivers, and that all the companys technology than ever before. We are signing sures designed to accelerate the resale of ing process. asset manager, servicer, etc. Such a collabora- leased at the show, Mortgage Loan origi- $6 million in volume. times more customer acquisition strategies existing relationships, contracts and 12, 13, 14 new customers every month. no foreclosed properties, the industry is one step Another key to speeding up the closing tive component cuts down on communication nation: reaching peak performance during There is good news for those managers than their lower-tiered colleagues. agreements will remain unchanged.

24 one else is signing that many. he said that closer to recovery. process is to identify and clear up any looming and saves time by approximately 30%. The challenging times. with producers in the lower two tiers: the as for acquiring knowledge about prod- The Mortgagebot executive team will once Mortgagebot reaches its 1,000-cus- The first step is to have as much data as issues during the marketing phase before the industry can then use this time to identify new The market has changed, fournier said, originators in these groupings can be moved ucts and industry trends, the study found

25 cott happ as tomer goal, the company will set its sights possible for the life of the loan. property goes under contract with a new buyer. buyers for unclaimed properties. and loan officers today have to go out and up if they have access to the best resources that just 28% of mortgage loan officers spend on the next 1,000, with its new owner open- To ensure a quick disposal of REO as- Run a thorough title search, verify and record Collectively we can work together to get clients by developing and cultivating re- and learn how to focus their time and effort at least 30% of their time in this area. But of Tower Group senior analyst Craig The acquisition makes sense for davis ing fresh markets to tackle. sets, it is crucial to pull out all the pertinent all foreclosure dates and stay on top of any restore and rebuild the housing industry. By lationships and by being there when the con- on customer acquisition and gaining product the group that does, 60% were in the top he talks to both firms + henderson, he said, because Mortgage- There are still plenty of challenges information upfront that would be needed delinquencies. Make sure to resolve any title speeding up the resale of foreclosed proper- sumer has a need. knowledge, he said. one-third performance grouping, while 5% think acquiring bot, with close to 1,000 customer banks to meet in the U.s. market, said happ. throughout the entire foreclosure process, issues and pay any delinquent dues (HOA, ties, we help to stabilize real estate prices, re- Mss, which is the parent of Mortgage he said the study found the top group did were in the bottom tier. enderson a and credit union users of its Powersite The online shopping experience is focusing on both the beginning and end of taxes, liens) upfront that could delay closing. vitalize communities and rejuvenate the hous- Market Guide and LoantoolBox, started out not have better training or more experience enhancing product and financial knowl- strong product and a very deep customer technology, already is pursuing long- still in its early phases. CrM capabil- a loans lifecycle. Thorough title curative That guarantees a smoother transaction once ing market. as a mortgage broker centric company. But than the members of the other two tiers. edge is considered to be the factor that gen- base into which they can sell their other range expansion of its customer base. For ity is going to become increasingly now, about 40% of its subscribers are mort- What they were better at was maintaining erates the highest improvement in perfor- technology products that already domi- acquirers, purchases like this one are at- important to the end users. We hope to gage bankers. as the market changed, the customer contact and reacting to the changes mance, the study added. nate the Canadian lending market, said tractive because de novo expansion can support integration with the leading company needed to change, he explained, so in the marketplace more quickly than their top performers tend to rely on trade e said the deal gives Mortgage- be very expensive, observed Focardi. CrM companies. it commissioned a study for internal use. The competition. journals and publications more heavily bot deeper capital to expand their lend- Mortgagebot boasts greater than 80% Perennially included in Mortgage Tech- study gave Mss an incredible amount of data The study found that the top producers than the others for information, and they market share in its target market of finan- nology magazines Top 50 service Pro- 400 Northridge Road it felt it needed to share with the industry. spend at least one-third of their time on complete more accreditation and licensing enderson operates in other con- cial institutions with greater than $100 vider list, Mortgagebot has received more Atlanta, GA 30350 The information was gathered through an acquiring new customers and maintaining coursework. sumer lending arenas such as credit cards. million in assets that want a transaction- MT awards than any other company. v Phone: 877.459.5481 online survey by firstusa data with 3,600 relationships with prospects and former When it comes to pipeline management, www.prommis.com respondents. There were over 500 follow-up customers. top performers in general spend less time [email protected] calls made. specifically, their priorities were to tend administering this area, except for when 2011 SourceMedia Inc. and National Mortgage News. All rights reserved. SourceMedia, One State Street Plaza, New York, N.Y. 10004 (800) 367-3989 2011 SourceMedia Inc. and Mortgage Servicing News. All rights reserved. SourceMedia, One State Street Plaza, New York, N.Y. 10004 (800) 367-3989 ENHANCE YOUR MARKETING Enhance your company image, lend PROGRAM credibility to your corporate marketing message, and provide an independent WITH REPRINTS endorsement of the news and information you want to share with your clients, AND ePRINTS prospects, associates and employees. N Create credible sales literature to distribute at N Handouts at meetings trade shows and conferences N Training aids for educational purposes N Reinforce your companys position in the market N Customized corporate brochures N Follow-up to prospect inquiries N Sales tool for staff N Direct mail enclosure N Enhance press releases FOR MORE INFORMATION, CONTACT: Denise Petratos | 212.803.6557 | [email protected] 010_MTMay12 4 5/10/2012 3:33:23 PM

26 TOP SERVICE PROVIDERSl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l -0"/-0(*$4 .05*7*5:40-65*0/4 3&7& MPBOMPHJDTDPN NPUJWJUZTPMVUJPOTDPN SFWFST 5SFWPTF 1B "VSPSB $PMP 4BO% Loan quality control technology provider Aklero Risk Analytics The latest release of the Movation business intelligence platform The re and product and pricing engine vendor NYLX merged to form boasts reduced lag times for retrieving datasets. That performance pandin LoanLogics in May 2013. Its LoanHD system performs automated improvement is augmented with a new user interface that is light- tivity quality checks against loan file documentation via data extrac- er and more responsive to mobile devices. Motivity Solutions also trainin tion and performance analytics, providing access to both the data released a report card feature for lenders to evaluate and bench- offerin and the documents they were extracted from to review files. mark individual employees, departments and branches. origin .&%"--*0/"/"-:5*$4 015*."-#-6& 453& NFEBMMJPOBOBMZUJDTDPN PQUJNBMCMVFDPN TUSFFUS 1JUUTCVSHI 1B 1MBOP 5FYBT "UMBOUB Medallion Analytics launched new pre-funding and post-close In addition to acquiring its largest product and pricing engine The co audits to provide its loan quality control reviews to a broader competitor, LoanSifter, the technology developer released Opti- Lendin spectrum of the origination process. It also developed a vendor mal Blue Advantage, a compliance management tool that mon- cessin scorecard tool to provide loan-level insight into vendor manage- itors a lenders active pipeline to identify potential fair lending bedde ment decisions. Its automated technology helps lenders stream- and disparate impact violations at the time of the rate lock, banke line the loan review process and reduce compliance expenses. rather than after closing. stores .035("(*-%&340'58"3& 1-"5*/6.%"5"40-65*0/4 643& NPSUHBHFCVJMEFSDPN QMBUEBUBDPN VTSFT 4PVUIFME .JDI "MJTP7JFKP $BMJG -BLF' Colonnade, a browser-based servicing system of record, was re- A new scoring functionality in Platinum Datas RealView ap- U.S. R designed on a common platform to align with Mortgage Builders praisal review technology assigns scores in three categories to its REO Architect LOS and LoanXEngine, its customer relationship man- help assess the quality of valuations and properties. The com- Its tec agement and product and pricing software. Mortgage Builder pany also launched an AVM calibration program that tests the taskin has also made additional enhancements to its suite of technolo- accuracy of each of the 18 nonproprietary AVMs it provides, custom gies to allow faster and more efficient initial implementations. based on their performance in different geographic areas. intern .035("(&$0"$) 26"/%*4 7&-0 NPSUHBHFDPBDIDPN RVBOEJTDPN WFMPDJG *SWJOF $BMJG 'PPUIJMM3BODI $BMJG &M4FH By providing personalized charts, graphs and loan officer-pro- Quandis default servicing management technology offers auto- In resp duced videos, Mortgage Coachs Edge software helps originators mates transaction- and loan-level preforeclosure reporting and Veloci explain loan scenarios to borrowers via desktop computers and auditing between investors and default attorneys to track the with a mobile devices. While the software provides unique borrower foreclosure steps taken on individual loans. The vendor also es. Inc experiences, lender-controlled configurations ensure regulatory created an automated court records search to locate bankrupt- of tran compliance and a consistent sales process across an organization. cies on a nationwide basis, down to the county court level. workfl .035("(&3&563/4 26&4540'5 7&30 NPSUHBHFSFUVSOTDPN RVFTUTPGUDPN WFSPT 4U-PVJT .P -BHVOB)JMMT $BMJG 4BOUB Mortgage Returns customer relationship management platform The new Compliance Relief system combines QuestSofts To fac combines database analytics and automated campaigns that tar- HMDA, Community Reinvestment Act and fair lending compli- ment, get leads with individualized marketing pieces that are more ef- ance products, as well as its state-level reporting and NMLS Delive fective than traditional mass-marketing. It recently launched new call report services into a consolidated package that features a Portal post-close customer and referral partner email drip campaigns single interface for lenders to access each module and integra- also im and surveys for lenders to gather feedback on the loan process. tions with myriad LOS vendors. tion o 18 Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 018_MTMay14 6 5/2/2014 5:20:07 PM

27 lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 3&7&34&7*4*0/ 7*31"$, SFWFSTFWJTJPODPN WJSQBDLDPN 4BO%JFHP $BMJG .D-FBO 7B atform The reverse mortgage technology vendor has focused on ex- The document management and delivery technology devel- mance panding its product suite to include new loan officer produc- oper launched a service ordering and delivery platform called s light- tivity tools, EDM capabilities and Web-based education and VirPack Partner Network that lets lenders order and receive ns also training tools to complement its reverse mortgage LOS. Its core services outside of their LOS. It also added enhancements to bench- offering provides a centralized hub to pass loan files between support the documentation requirements of more steps in the originators, investors and other third parties. origination process and created a third-party originator portal. 453&&53&4063$&(3061 8*130 TUSFFUSFTPVSDFDPN XJQSPDPN "UMBOUB (B #BOHBMPSF *OEJB engine The companys warehouse loan transaction platform, Warehouse Multinational technology and outsourcing firm Wipro added to its Opti- Lending System, uses customizable workflows and paperless pro- mortgage fulfillment business by acquiring Lincolnshire, Ill.-based mon- cessing to guide warehouse originations. It also contains an em- due diligence firm Opus Capital Markets Consultants in December. nding bedded messaging system for warehouse lenders and mortgage Franklin, Tenn.-based mortgage software unit Wipro Gallagher So- e lock, bankers to effectively communicate via a secure channel that lutions launched Lend Value, which combines the NetOxygen LOS, stores conversations for auditing and examination purposes. Enterprise Mobile Origination app and LendCentric user portals. 643&4 80-5&34,-68&3 VTSFTOFU XPMUFSTLMVXFSDPN -BLF'PSFTU $BMJG "MQIFOBBOEFO3JKO /FUIFSMBOET w ap- U.S. Real Estate Services has added AMC capabilities alongside The multinational information services and publishing companys ries to its REO outsourcing, valuations and default servicing businesses. Minneapolis-based Wolters Kluwer Financial Services added a com- Its technology subsidiary, RES.NET, updated the workflow and forms preview tool to streamlines identifying and setting up forms sts the tasking functionalities of its real estate management platform to in its document preparation system. Houston-based CT Lien Solu- ovides, customize tasks without make code changes, as well as made its tions provides a platform for document preparation and recording s. internally-used valuation portal available for external client use. for land recording, property searches and flood determinations. 7&-0$*': 9&309 WFMPDJGZDPN YFSPYDPN &M4FHVOEP $BMJG 3PDIFTUFS /: auto- In response to the industry shift toward a purchase-driven market, The document management, printing and outsourcing firms ng and Velocify updated its customer relationship management platform Xerox Mortgage Services unit, based in Sandy Springs, Ga., ex- ck the with automated selling paths for purchase and refinance mortgag- panded its BlitzDocs EDM and collaborative workflow platform r also es. Incoming borrower leads are reviewed to determine the type to support mortgage servicing documents. The new configura- krupt- of transaction, and originators are guided through a marketing tion provides a single point of reference for all documentation el. workflow thats optimized for the loans characteristics. related to a borrower for the duration of a mortgage. 7&3043&"-&45"5&40-65*0/4 ;*--08 WFSPTDPN [JMMPXDPN 4BOUB"OB $BMJG 4FBUUMF 8BTI stSofts To facilitate its upcoming electronic appraisal delivery require- The real estate and mortgage information provider added a ompli- ment, the FHA selected Veros to build its Electronic Appraisal borrower pre-approval tool to Zillow Mortgage Marketplace, its NMLS Delivery portal, a sister platform to the Uniform Collateral Data online rate table advertising platform. Its Lincoln, Neb.-based ures a Portal that Veros previously built for the GSEs. The company Mortech subsidiary incorporated new compliance-monitoring ntegra- also improved its appraisal scoring technology with the addi- and borrower credit reporting tools into its Web-based product tion of predictive analytics to produce more detailed results. and pricing engine and point of sale system. www.mortgage-technology.com 19 019_MTMay14 7 5/2/2014 5:20:19 PM

28 LEAD GEN LOGISTICS GISTICS CUSTOMER-RELATIONSHIP MANAGEMENT TECHNOLOGY AND NEW REGULATIONS REQUIRE LENDERS AND LOAN OFFICERS TO RE-EVALUATE HOW THEY MANAGE THE OWNERSHIP AND USE OF LEAD SHEETS. T here was a time when most lenders didnt feel the need to keep their loan officers on a tight leash. They were commission-based employees or contractors who were expected to be self-starters, working on their own initiative and generating leads from real estate brokerage firms and any other sources they could muster up. When the company provided leads to them, lenders felt little need to monitor how those leads were pursued or managed. Originators had plenty of incentive to turn leads into business, and how they went about that work was of little concern to the mortgage company. But a new mortgage regulatory environment has put lenders under more pressure to monitor and manage how originators interact with potential customers. And an expanding array of technology and electronic commerce has broadened access to consumer leads, and BY TED CORNWELL made lead and contact lists more transient than ever. That has raised questions about who owns leads or contacts, and what happens to them when a loan officer leaves a lender. In todays increasingly mobile workplace, lenders worry that departing originators will take business with them. And moreover, lenders could find themselves in the crosshairs of consumer protection agencies if current or former loan officers utilize those leads in ways that stray from the new compliance standards. Meanwhile, loan officers are often resistant to using technology that could diminish their control over their book of business and expose their client list to other originators. In this new world, lenders are struggling to find the right balance between centralized management of leads and empowering loan officers to turn leads into business. www.mortgage-technology.com 21

29 Lead Gen LoGistics The Lenders diLemma And much of the companys focus is on protecting private Em Brian Koss, executive vice president of Mortgage Network consumer data like social security numbers, which have to see Inc., a privately-held, Danver, Massachusetts-based mort- come under greater regulatory scrutiny. Our data is our take gage banking firm active in 21 Eastern states, says that data. We recognize that loan officers take the public data easy though technology can be employed to protect sensitive thats out there. Anything that is private data that you cant practi consumer data, its hard to prevent loan originators from find in the public domain, that data is ours, Koss says. selves exporting leads and contacts in a business that relies so Lenders are often required to stop ex-loan officers from ing th heavily on easy access to this data meaning that its going after their customers. Servicing agreements prohibit As almost impossible to stop someone internal from taking a lender and its representatives from going after existing it som leads or contacts out of a lenders internal systems, even if customers with refinancing offers, for instance. The its against company policy. If you leave us, you are supposed to behave the way you comp We are very good at creating the firewalls and keeping were supposed to behave when you were here, Koss says. sition people away from the data. But when you have people in- The biggest concern, Koss says, is that departing loan orig- dilige ternally who do things that are unwise, thats the hard part, inators will violate consumers privacy. Customers are not from he says. In a Web-based business environment, Mortgage happy when they get a call from an originator at a different leads Network distributes laptops to its loan officers that can be company who seems to know an awful lot about me, Koss doing locked down and encrypted to control the customer contact says. Mortgage Network also tightly controls loan officers are in information available on those devices, which can also be own websites. All of their websites must be licensed to us, It wil wiped clean if a loan officer leaves the company. so we control all content on the site. banks If you leave us, you are supposed to behave the way you were supposed to behave when you were here. Brian Koss, Executive Vice President, Mortgage Network Inc. Mortgage Network embraces the use of social media and If originators believe the company is watching their Web In other online technology that could put contact information activities, they are likely to behave, he says. That monitor- prohi at risk, believing that it is impossible to prohibit loan origi- ing may get easier in the near future. Koss says Mortgage on wh nators from using those tools, Koss says. Network is implementing software that will comb loan orig- gener If you are going to post or share information, we are inator websites all the time. The software pings the lender if by th going to teach you how to do it and then monitor it, rather it finds originators misusing their online presence and will One w than let people do it secretly and pretend it isnt there. be rolled out in the next 60 days. That monitoring is go- origin The company holds routine classes to help its loan offi- ing to be invaluable, Koss says. have cers understand how they should use online services such And the company provides guidance to loan officers lead s as Facebook and LinkedIn the right way, without putting about how they should use personal websites and social comp their customers data at risk or running afoul of various media profiles to protect both the lender and employees. The compliance regulations. Most people are clueless about it, so we help them with Finan Koss says monitoring and restricting the transfer of bor- that. We catch people doing silly things and we educate includ rower leads and contact information is sometimes tricky. them, he adds. And since loan originator websites are li- rower The company wants to restrict where information is go- censed to the company, Mortgage Network can take them keters ing and how it gets there, but it doesnt want to impede down when an employee leaves the company. ents a electronic commerce. Efforts to discourage inappropriate Robert Lotstein, an attorney and head of LotsteinLegal, telem transfers of leads and contacts include limiting the size of says most employment contracts between lenders and orig- censin emails and creating firewalls or what he calls, a little fric- inators make it very clear the lender owns the leads and Th tion in large data transfers. contact lists. But with e-commerce and digital databases, he they l We try to create little barriers where we can, but dont acknowledges it is technically difficult to ensure originators difficu slow it down enough so its bad for business, he says. dont take leads with them when they leave a company. these 22 Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 022_MTMay14 3 5/1/2014 2:25:57 PM

30 rivate Employment contracts typically allow mortgage lenders CRM PlatfoRMs taCkle the Challenge have to seek an injunction against departing loan officers that Paul Zoukis, CEO of Vantage Production, provider of the VIP s our take lead sheets with them. From a legal perspective, its customer relationship management platform, says lenders have c data easy to assert the companys ownership of leads. From a to rely on automation to meet compliance requirements for cant practical perspective, its common for lenders to find them- managing leads. Prior to the new regulatory environment, a s. selves having to confront former employees who are min- sort of Wild West environment prevailed, with loan originators from ing their old customers for business. pretty much doing whatever they wanted to drum up business. ohibit As you know, people still do what they want to do, and Today, the world is less loan officer centric, he says. isting it sometimes it becomes a negotiation, he says. There is an evolution taking place around the ownership of The new regulatory environments heightened focus on consumer leads and contact lists, Zoukis says. In the past, there y you compliance and consumer protection extends to lead acqui- was a bias toward the LOs owning leads they collected. When says. sition and management. Lenders must conduct greater due they moved on to a different firm, their contact lists moved n orig- diligence on vendors than in the past, including companies with them. And in fact, lenders often hired LOs precisely be- re not from which they purchase leads. A lender that purchases cause they could bring a substantial customer list with them. fferent leads needs to make sure that that company is properly But there is a wide range of models for ownership of cus- Koss doing business, Lotstein says. Its not enough to say they tomer data between loan originators and corporate lenders, fficers are in this business, and Im sure they know how to do this. he says. In some cases, co-ownership is evolving. Technol- to us, It will be interesting to see the bureau pursue lenders or ogy has changed the way leads are managed, but it hasnt banks for failure of their vendors to comply with the law. changed who ultimately owns the prospect or customer. ay A great majority of mortgage companies out there . have absolutely no idea what their loan officers are k Inc. doing prior to submission of a loan application. Kelly Booth, Director, Mortgage Vertical, Velocify r Web In addition, the new loan officer compensation rules Either way, as a matter of legal ownership, nothing has nitor- prohibit lenders from paying originators differently based changed, just the collection of it has changed, Zoukis says. rtgage on whether mortgage applications came from cold leads However, new regulations have created major changes in the n orig- generated by the loan officer or warm leads provided way originators are compensated, trained and regulated. Lend- nder if by the lender, as had been commonly done in the past. ers now have to exercise more control over what LOs do in the d will One way to skirt the prohibition may be to dedicate some field. One drawback to strict corporate ownership of leads is is go- originators to exclusively generate their own leads and that it can be a powerful recruiting tool to attract loan origina- have others exclusively work from company-generated tors to tell them, You own your clients, Zoukis says. fficers lead sheets. In that case, Lotstein believes the lender could In some cases, co-ownership of customer lists has been social compensate the loan officers differently. the solution. Certainly no lender would want all their data ees. There are a host of other questions about the Consumer owned by their loan officers. Under co-ownership, a de- m with Financial Protection Bureaus interpretation of its new rules, parting LO may take contact information gathered from ducate including how it will view telemarketing to generate bor- customers, but the company also retains those lists. are li- rower leads. In the past, lenders typically wanted telemar- CRM technology may fuel a trend toward corporate control them keters to capture as much information about potential cli- of contact data, it also facilitates workflow automation that ben- ents as possible. Today, that could spark the CFPB to view efits loan officers. We dont see nearly as much resistance as Legal, telemarketers as loan originators who fall under new li- you might expect. People see the advantages, Zoukis says. d orig- censing and regulatory requirements. Automated marketing, which became prevalent about six s and The more information a telemarketer collects, the more years ago, has changed the way leads and contact information es, he they look like a loan originator, Lotstein says. One of the are used, he says. Email updates, anniversary cards, birthday nators difficulties is getting guidance from the Bureau on some of cards and holiday cards are now routinely sent out to existing ny. these nitty gritty issues. customers and prospects by automated systems. www.mortgage-technology.com 23 023_MTMay14 4 5/1/2014 2:26:35 PM

31 Lead Gen LoGistics Typically, loan originators bought those services and used Velocifys system seeks to break through that reluctance their own databases to feed them, often using the lenders by automating hundreds of tasks that loan officers have to logo on the communication. But with heavier oversight of do to follow through on leads. Velocify tries to appeal to how originators interact with customers, lenders have to new loan officers who are tech-savvy, but it also gives man- exercise more control over what information is sent out agement more insight about what is happening with leads. to consumers, particularly when it comes to rate quotes. Velocify lets lenders limit who has access to leads on a cus- Zoukis says a broad-based integration of lead and contact tomized basis. For instance, lenders can open the pipeline to a data into CRM platforms can help lenders facilitate cradle particular loan officer for certain types of loans, but not others. to grave marketing while staying compliant. Not only does that give lenders more control over leads, it can Among the new regulatory requirements, lenders must also help them prioritize prospective customers. They are mak- show loan information was presented clearly, consistently, ing sure the right leads get to the right people, Booth says. and that consumers understood the loan terms. That re- Lenders can also require that leads generated by a lend- quires greater auditing and archiving of communication ers business website and social media outlets be automati- between loan officers and consumer prospects. We capture cally fed into the companys CRM system. However, she says every keystroke, every presentation, every audio or video most clients are not doing that today. ever made, Zoukis says. But lenders are starting to wake up to the risks posed The automation needed to ensure compliance neednt by what information is being shared on loan officers indi- be expensive and shouldnt stifle marketing opportunities. vidual websites. If corporations and mortgage companies Instead, efficiency and compliance can benefit. It doesnt took a good look at some of these websites, they wouldnt have to step on your revenue air hose, Zoukis says. be pleased with them, Booth says. Another lead-management channel involves large wholesal- To appease loan officers who feel protective about the ers that have to be concerned about what brokers tell prospec- leads they generate, she says the CRM can be customized so tive borrowers. Brokerage firms wont give up ownership of that only they can access leads they enter into the system. leads and contacts, but CRM technology helps lenders harvest Employing CRM to monitor leads and contacts early in all that information from loans they buy from brokers. You get the process not only helps ensure compliance, it also can all the information because you own the loan, Zoukis says. measure business metrics. For example: How many leads Today, CRM systems need to do more than just have a from a particular real estate agent go to funding? The tech- comprehensive library of rate and product information. nology helps lenders determine which relationships and They have to make sure communication with prospective marketing campaigns are working. customers is compliant as well. When a consumer comes in, Still, many are reluctant to turn over information about we can control what information that consumers is seeing prospective customers before they have a loan application and make sure the lender has approved it, Zoukis says. in hand. A great majority of mortgage companies out there Kelly Booth, director of the mortgage vertical at Velo- have absolutely no idea what their loan officers are doing cify, another CRM provider, also says the new regulatory prior to submission of a loan application, Booth says. environment requires lenders to keep better track of what loan officers do with leads. Traditionally, the loan officers have kind of acted like rogue agents out there on their own. There hasnt always been a real tight leash on the leads the Index of AdvertIsers loan officers have, she says. At a corporate level, lenders are increasingly wary of giv- Advertiser Pg # ing loan officers too much control of leads and contacts. Black Knight Financial Services Not only are they fearful that the leads will leave with bkfs.com 7 the loan officers, they also dont have insight into whats Davis+Henderson being done with the leads, she says. dh.com/beginhere9 3 Centralized lead management and marketing are also FICS fics.com C4 needed for compliance. Still, because originators want to Lending Manager keep control leads they generate, many are reluctant to use lendingmanager.com C2 centralized CRM technology. We still have a lot of LOs out there that are doing everything manually, Booth says. 24 Mortgage Technology Summer 2014 C E L E B R AT I N G 2 0 Y E A R S 024_MTMay14 5 5/1/2014 2:26:41 PM

32 CK6AJ67A:[email protected]:I EGD9J8I>CH>8:H 9:H8G>EI>DCH >YZci^[nBVg`ZiDeedgijc^i^Zh/YZcZVcYX]VgVXiZg^oZ DcZ"i^bZhjgkZniVg\ZihVh^c\aZbVg`ZiVcY ediZci^VaXjhidbZghjW"hZ\bZcihid\gdlndjgWjh^cZhh FjVci^iVi^kZ Xdch^hihd[jeid'*fjZhi^dch!ZaYZYk^Vdjg

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